delivering superior value
through the business cycle
Mark W. Albers
Senior Vice President

Barclays Capital CEO Energy/Pow...
cautionary statement
Forward-Looking Statements. Statements of future events or conditions in this presentation or the
sub...
proven business model
recent business environment

 • volatile commodity prices and margins


 • changing near-term demand


 • significant fina...
economic cycles
GDP* change (quarter vs. quarter)
   %                                                                    ...
cost cycles
annual change in total erected cost – U.S. onshore
    %                                                      ...
growing demand for energy
energy demand
       MBDOE
                                                       average growth...
global liquids supply and demand
       MBDOE
        120                                            average growth / year...
gas supply and demand
North America
       BCFD
        120                                            average growth / ye...
gas supply and demand
Europe
       BCFD
        120                                            average growth / year   12...
gas supply and demand
Asia Pacific
       BCFD
        120                                            average growth / yea...
keys to success

 • business risk management


 • financial strength and flexibility
                                     ...
organizational effectiveness
     • global functional organization implemented at the merger

     • unrelenting focus on ...
capturing quality growth opportunities
net exploration acreage

  million
                  Asia, Middle East, Russia     ...
consistent reserves replacement
proved reserves replacement ratio*
       %
      150




      100




        50




   ...
adding reserves at lower cost
'04-'08 reserves replacement cost*
                      $ per OEB
                         ...
upstream project execution
cost performance                                            schedule performance
variance: actu...
maximizing value of assets
cold lake recovery estimates                         upstream operations uptime, '04 to '08
pro...
disciplined cost management
cash costs per OEB, indexed* (FAS69)
           250


                                        ...
industry-leading volumes per share
reserves per share, indexed*                                                     produc...
industry-leading upstream earnings
'04-'08 upstream net income per barrel*                                                ...
industry-leading upstream returns
  average capital employed*                                                             ...
key exploration wells
  Canada Beaufort
                      West Greenland

 Canada
                                    ...
significant global project portfolio
number of projects (YE '08)

     125

                                              ...
future capacity growth

2010+ major project start-ups                                long-plateau volumes build-up
KOEBD, ...
Piceance project
• commercialize world-class resource through execution excellence
  – technology application
  – manufact...
Qatar LNG projects
 1999                                      Qatargas
                                             2009

...
PNG gas project
                  ExxonMobil strengths:
                  • execution in challenging environment
         ...
long-term commitment to research
      identified                                            commercial
    opportunities ...
profitable production growth
total production outlook
MOEBD, net

 5                                             5        ...
Upstream business well positioned
     • highest standards of integrity

     • largest, high-quality resource portfolio

...
Exxon Mobil Corporation at Barclays Capital 2009 CEO Energy Conference
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Exxon Mobil Corporation at Barclays Capital 2009 CEO Energy Conference

  1. 1. delivering superior value through the business cycle Mark W. Albers Senior Vice President Barclays Capital CEO Energy/Power Conference New York – September 9, 2009
  2. 2. cautionary statement Forward-Looking Statements. Statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including demand growth and mix; ExxonMobil’s own production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; product mix; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil and gas industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investors section of our Web site at exxonmobil.com. Frequently Used Terms. The terms “resources,” “resource base,” and similar terms include quantities of discovered oil and gas that are not yet classified as proved reserves but that are expected to be ultimately recovered in the future. Reserves in this presentation are calculated using ExxonMobil’s definition of proved reserves, which assumes the long-term pricing basis that the corporation uses to make its investment decisions. This differs from the SEC basis, which (effective 01/01/2010) is based on 12-month average prices. Reserves herein (i) include proved reserves from oil sands operation in Canada, consistent with the 01/01/2010 revisions to the SEC’s rules; and (ii) are the combined total from both consolidated subsidiaries and our interest in equity companies. Reserves replacement ratio for a given period is calculated utilizing proved oil-equivalent reserves additions (calculated based on ExxonMobil’s definition of proved reserves) divided by oil-equivalent production. For definitions of, and SEC Reg G information regarding, reserves, return on average capital employed, normalized earnings, cash flow from operations and asset sales, and other terms used in this presentation, see the "Frequently Used Terms" posted on the Investors section of our Web site. The Financial and Operating Review on our Web site also shows ExxonMobil's net interest in specific projects.
  3. 3. proven business model
  4. 4. recent business environment • volatile commodity prices and margins • changing near-term demand • significant financial market changes • adjustments by competitors to business plans
  5. 5. economic cycles GDP* change (quarter vs. quarter) % % 25.0% 25 25.0% 25 20.0% 20 USA 20.0% 20 UK 15.0% 15 15.0% 15 10.0% 10 10.0% 10 5 5.0% 5.0% 5 0 0.0% 0 0.0% -5 -5.0% -5 -5.0% -10 -10.0% -10 -10.0% '70 1970 '75 1975 '80 1980 '85 1985 '90 1990 '95 1995 '00 2000 '05 2005 '70 1970 '75 1975 '80 1980 '85 1985 '90 1990 '95 2000 1995 '00 2005 '05 % 15 15.0% Japan 10 10.0% 5 5.0% 0 0.0% -5 -5.0% -10 -10.0% -15 -15.0% '70 1970 '75 1975 '80 1980 '85 1985 '90 1990 '95 1995 '00 2000 '05 2005 *gross domestic product Source: U.S. Bureau of Economic Analysis; UK Office for National Statistics; Japanese Cabinet Office
  6. 6. cost cycles annual change in total erected cost – U.S. onshore % asian 50% oil oil price gulf oil price 50 embargo drop war financial surge crisis 40 40% 30 30% 2020% 10 10% 0 0% -10% -10 '70 '75 '80 '85 '90 '95 '00 '05 Source: ExxonMobil projects
  7. 7. growing demand for energy energy demand MBDOE average growth / year 350 350 2005 – 2030 1.2% wind, solar & biofuels 300 300 biomass, hydro & geothermal 250 250 nuclear coal 200 200 150 150 gas 100 100 50 50 oil 0 0 '80 '05 '30 Source: The Outlook for Energy: A View to 2030, ExxonMobil, December 2008
  8. 8. global liquids supply and demand MBDOE 120 average growth / year 120 2005 – 2030 1.0% Liquids Demand 90 90 ~38 Biofuels 60 ~28 60 NGL, OPEC OPEC Crude Condensate, Other Non-OPEC Oil Sands 30 30 Non-OPEC Crude & Condensate 0 0 '80 '05 '30 Source: The Outlook for Energy: A View to 2030, ExxonMobil, December 2008
  9. 9. gas supply and demand North America BCFD 120 average growth / year 120 2005 – 2030 1.0% 100 100 LNG 80 80 60 Unconventional 60 Local Production 40 40 20 20 Conventional 0 0 '00 '05 '30 Source: The Outlook for Energy: A View to 2030, ExxonMobil, December 2008
  10. 10. gas supply and demand Europe BCFD 120 average growth / year 120 2005 – 2030 0.9% 100 100 80 80 LNG 60 60 40 40 Pipeline 20 20 Unconventional Conventional 0 0 '00 '05 '30 Source: The Outlook for Energy: A View to 2030, ExxonMobil, December 2008
  11. 11. gas supply and demand Asia Pacific BCFD 120 average growth / year 120 2005 – 2030 3.7% 100 100 LNG 80 80 Pipeline 60 60 Unconventional 40 40 Conventional 20 20 0 0 '00 '05 '30 Source: The Outlook for Energy: A View to 2030, ExxonMobil, December 2008
  12. 12. keys to success • business risk management • financial strength and flexibility ExxonMobil - industry leadership • asset quality and diversity through the business cycle • disciplined and consistent business approach • long-term perspective
  13. 13. organizational effectiveness • global functional organization implemented at the merger • unrelenting focus on efficiency and effectiveness ExxonMobil Corporation employees (number)* thousands 120 100 80 60 40 20 0 '99 1999 '00 2000 '01 2001 '02 2002 '03 2003 '04 2004 '05 2005 '06 2006 '07 2007 '08 2008 *regular employees at year-end
  14. 14. capturing quality growth opportunities net exploration acreage million Asia, Middle East, Russia 42% increase in net exploration acres Europe, Africa acreage from 2003 to 2008 Americas 80 unconventional gas resource example acquisition cost* (unit cost) 60 100,000 ExxonMobil Entry Competitor Entry (oil-equivalent barrels per acre) resource density 40 10,000 20 B sive EB ive / O ens OE en 0 / xp .10 exp $1 re e / O nce $0 ss EB o $1 fere e xm xl Re 10 10 1,000 10 100 1,000 10,000 100,000 0 entry cost (U.S. $ per acre) '03 '08 *competitor entry cost data based on publicly announced deals
  15. 15. consistent reserves replacement proved reserves replacement ratio* % 150 100 50 0 1994 '94 1996 '96 1998 '98 2000 '00 2002 '02 2004 '04 2006 '06 2008 '08 *Calculated on ExxonMobil definition of proved reserves, assumes long-term pricing basis that the corporation uses to make its investment decisions, and includes proved reserves from oil sands operations in Canada. Includes asset sales.
  16. 16. adding reserves at lower cost '04-'08 reserves replacement cost* $ per OEB 20 15 10 5 0 XOM BP RDS CVX Reserves Replacement Ratio ’04-’08 132% 115% 96% 101% *costs incurred in property acquisition and exploration plus development activities, divided by proved oil-equivalent reserves additions, including purchases. Competitor data estimated on a consistent basis with ExxonMobil, and based on public information. Reserves calculated using year-end pricing; includes Canada oil sands; excludes asset sales.
  17. 17. upstream project execution cost performance schedule performance variance: actual versus funded (%), '04 to '08 start-ups variance: actual versus funded (%), '04 to '08 start-ups 150 150 114% 116% 103% 105% 100 100 50 50 0 0 ExxonMobil operated operated by others
  18. 18. maximizing value of assets cold lake recovery estimates upstream operations uptime, '04 to '08 production kbd % 100 ExxonMobil operated recovery operated by others 200 13 17 25 30+ factor % 95 150 93% 91% 90 100 50 85 0 80 1965 '65 1975 '75 1985 '85 1995 '95 2005 '05
  19. 19. disciplined cost management cash costs per OEB, indexed* (FAS69) 250 RDS RDS 200 BPBP CVXCVX XOM XOM 150 100 2004 '04 2005 '05 2006 '06 2007 '07 2008 '08 *Upstream technical costs (FAS69) normalized using 10-K/20-F information
  20. 20. industry-leading volumes per share reserves per share, indexed* production per share, indexed* 140 120 XOM XOM 130 BP 110 CVX 120 BP 110 100 RDS CVX 100 RDS 90 90 '04 '05 '06 '07 '08 '04 '05 '06 '07 '08 *competitor data estimated using a consistent basis with ExxonMobil, and based on public information
  21. 21. industry-leading upstream earnings '04-'08 upstream net income per barrel* 1H 2009 $ / OEB 20 15 10 5 0 XOM XOM CVX CVX RDS RDS BP BP *competitor data estimated on a consistent basis with ExxonMobil, and based on public information
  22. 22. industry-leading upstream returns average capital employed* reported net income* $B $B 80 40 60 30 40 20 20 10 0 0 XOM BP RDS CVX XOM BP RDS CVX return on average capital employed* % 60 '04 '08 40 20 0 XOM BP RDS CVX *competitor data estimated on a consistent basis with ExxonMobil, and based on public information
  23. 23. key exploration wells Canada Beaufort West Greenland Canada UK North Sea Horn River Canada Orphan Germany Hungary Ireland Black Sea Libya U.S. Gulf of Mexico Philippines Indonesia Nigeria Makassar Indonesia Cepu Angola Madagascar Australia Brazil 2009 3 new deepwater rigs 2010+ New Zealand under contract
  24. 24. significant global project portfolio number of projects (YE '08) 125 Russia / Caspian 100 planning /selecting Africa 75 Europe 50 defining Americas Asia Pacific 25 executing Middle East operating 0 project stage project stage Geography geography
  25. 25. future capacity growth 2010+ major project start-ups long-plateau volumes build-up KOEBD, net KOEBD, net 1500 1500 other flowstreams 1200 long-plateau volumes 1200 PNG LNG 900 Kashagan 900 2010+ start-ups Kearl Ph 1 600 600 AKG Ph 2, Qatargas 2 Train 5, 2009 start-ups RasGas Train 6 & 7 300 300 2008 start-ups Qatargas 2 Train 4, East Area NGL II 0 0 '08 '09 '10 '11 '12 '13 '14 '15 '08 '09 '10 '11 '12 '13 '14 '15
  26. 26. Piceance project • commercialize world-class resource through execution excellence – technology application – manufacturing efficiencies – leveraging ExxonMobil global best practices
  27. 27. Qatar LNG projects 1999 Qatargas 2009 • startup of world’s largest trains- Qatargas 2 Train 4 & RasGas Train 6 RasGas 2009 • largest LNG ships delivered • South Hook and Adriatic LNG terminals commissioned • remaining startups – Qatargas 2 Train 5 – RasGas Train 7 – Al Khaleej Gas
  28. 28. PNG gas project ExxonMobil strengths: • execution in challenging environment Hides Gas • developing national content Conditioning Plant • global gas marketing capability • enabling external project financing onshore pipeline elevation profile 10000 8000 Elevation (ft) 6000 4000 2000 0 0 20 40 60 80 100 120 140 160 180 200 Distance (miles)
  29. 29. long-term commitment to research identified commercial opportunities evaluation applications Advanced Subsurface Imaging Controlled Freeze ZoneTM LNG technologies Shale Gas Pore Network EMColdFlowTM Fast Drill Process Characterization
  30. 30. profitable production growth total production outlook MOEBD, net 5 5 5 4 4 4 3 gas 3 conventional flow streams 3 2 2 2 1 liquids 1 extended plateau 1 0 0 0 '08 '09 '10 '11 '12 '13 '08 '09 '10 '11 '12 '13
  31. 31. Upstream business well positioned • highest standards of integrity • largest, high-quality resource portfolio • lowest life-cycle cost, exploration to production • disciplined use of global best practices ensuring continuous improvement • proprietary suite of industry-leading technologies • attractive growth opportunities . . . to deliver superior value through the business cycle
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