ExxonMobil Presentation Details Strategy to Grow Shareholder Value, Protect Dividend and Transition to Lower-Carbon Future
April 27 2021 - 8:00AM
Business Wire
ExxonMobil today released a detailed investor presentation
reiterating the company’s strategy to capitalize on its
industry-leading resources to drive earnings and cash flow growth,
maintain a strong dividend, reduce debt and invest in
lower-emission technologies. The presentation, as well as
additional information related to ExxonMobil’s May 26, 2021 annual
meeting of shareholders, can be found at
www.XOMDrivingValue.com.
“ExxonMobil has laid a solid foundation for success,” said
Darren Woods, chairman and chief executive officer. “Our board and
management have developed and are executing a strategy which has
positioned us for future outperformance relative to peers,
including paying a reliable and growing dividend. We are uniquely
placed to help society meet its net zero ambitions, while capturing
enormous future opportunities and delivering value for shareholders
for many decades to come.”
ExxonMobil’s presentation outlines how it is investing in
lower-carbon technologies to expand business opportunities over the
longer term, while driving structural improvements in existing
businesses with a disciplined, value-driven approach.
The presentation highlights the new ExxonMobil Low Carbon
Solutions business, which is working to commercialize technologies
to reduce emissions in hard-to-decarbonize sectors, such as power
generation, commercial transportation and heavy industry. The
technologies include carbon capture and storage (CCS), which will
be the initial focus of Low Carbon Solutions, as well as hydrogen,
and advanced biofuels. Demand for these lower-emission technologies
could create multi-trillion dollar markets by 2040. ExxonMobil is
the global leader in CCS, and has captured approximately 40 percent
of all anthropogenic CO2 ever captured, the equivalent to planting
approximately 2 billion trees.
ExxonMobil recently announced a multi-industry CCS concept that
has the potential to significantly decarbonize heavy industries
located near the Houston ship channel; early projections indicate
that, with the appropriate enablers, it could remove approximately
100 million metric tons of CO2 per year by 2040. The lower-carbon
business opportunities leverage decades of ExxonMobil experience in
deploying technology at scale, and competitive advantages
demonstrated in its existing businesses. In addition, the company’s
2025 emission-reduction plans are projected to be consistent with
the goals of the Paris Agreement and a 2-degree pathway.
The company also details how it is investing in one of the most
attractive, high-return portfolios in the industry to increase cash
flow while maintaining existing production levels needed to
responsibly meet society’s continued demand for oil and gas and
high-value chemical products.
ExxonMobil’s plans are built to capture opportunities in a wide
range of long-term energy-demand scenarios, consistent with those
of the UN’s Intergovernmental Panel on Climate Change and the
authoritative International Energy Agency, that show a continued
use of fossil fuels well into the future. The company’s current
plan assumes flat production volumes while still generating excess
cash at $50 per barrel Brent.
Noting significant improvements to its portfolio since 2017, and
the fact that the company continues to benefit from long-cycle
actions approved by its board, ExxonMobil highlighted that total
shareholder return (TSR) has outperformed the peer average over the
past six-month, one-year, two-year and three-year periods, and had
a 52 percent TSR over the past year.
The company also outperformed the peer average on long-term
return on capital employed (ROCE) and dividend growth per share
over the last five years.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy companies, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. To learn more, visit exxonmobil.com and
the Energy Factor.
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Cautionary Statement
Outlooks; projections; goals; estimates; descriptions of
strategic plans and objectives; plans to reduce future emissions
intensity and the expected resulting absolute emissions reductions;
emission profiles of future developments; carbon capture results
and the impact of operational and technology efforts; energy market
evolution; product mix and sales growth; and other statements of
future events or conditions in this letter are forward-looking
statements. Actual future results could differ materially due to a
number of factors. These include continuity in our board of
directors and the oversight of our strategies by the board; global
and regional changes in the demand, supply, prices, differentials
or other market conditions affecting oil, gas, petroleum,
petrochemicals and feedstocks; company actions to protect the
health and safety of employees, vendors, customers, and
communities; the ability to access short- and long-term debt
markets on a timely and affordable basis; the severity, length and
ultimate impact of COVID-19 and government responses on people and
economies; global population and economic growth; changes in law,
taxes or regulation, including environmental regulations, taxes,
political sanctions and international treaties; the timely granting
or freeze, suspension or revocation of government permits; the
impact of fiscal and commercial terms and the outcome of commercial
negotiations; feasibility and timing for regulatory approval of
potential investments or divestments; the actions of competitors
and preferences of customers; the capture of efficiencies within
and between business lines; unexpected technological developments;
general economic conditions, including the occurrence and duration
of economic recessions; unforeseen technical or operating
difficulties; the ability to bring new technologies to commercial
scale on a cost-competitive basis, including large-scale hydraulic
fracturing projects and carbon capture projects; and other factors
discussed here, in Item 1A. Risk Factors in our Form 10-K for the
year ended December 31, 2020 and under the heading "Factors
Affecting Future Results" on the Investors page of our website at
www.exxonmobil.com under the heading News & Resources.
Important Additional Information Regarding Proxy
Solicitation
Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive
proxy statement and form of associated BLUE proxy card with the
U.S. Securities and Exchange Commission (the “SEC”) in connection
with the solicitation of proxies for ExxonMobil’s 2021 Annual
Meeting (the “Proxy Statement”). ExxonMobil, its directors and
certain of its executive officers will be participants in the
solicitation of proxies from shareholders in respect of the 2021
Annual Meeting. Information regarding the names of ExxonMobil’s
directors and executive officers and their respective interests in
ExxonMobil by security holdings or otherwise is set forth in the
Proxy Statement. To the extent holdings of such participants in
ExxonMobil’s securities are not reported, or have changed since the
amounts described, in the Proxy Statement, such changes have been
reflected on Initial Statements of Beneficial Ownership on Form 3
or Statements of Change in Ownership on Form 4 filed with the SEC.
Details concerning the nominees of ExxonMobil’s Board of Directors
for election at the 2021 Annual Meeting are included in the Proxy
Statement. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND
SHAREHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING THE
COMPANY’S DEFINITIVE PROXY STATEMENT AND ANY SUPPLEMENTS THERETO
AND ACCOMPANYING BLUE PROXY CARD, BECAUSE THEY CONTAIN IMPORTANT
INFORMATION. Investors and shareholders can obtain a copy of the
Proxy Statement and other relevant documents filed by ExxonMobil
free of charge from the SEC’s website, www.sec.gov. ExxonMobil’s
shareholders can also obtain, without charge, a copy of the Proxy
Statement and other relevant filed documents by directing a request
by mail to ExxonMobil Shareholder Services at 5959 Las Colinas
Boulevard, Irving, Texas, 75039-2298 or at
shareholderrelations@exxonmobil.com or from the investor relations
section of ExxonMobil’s website, www.exxonmobil.com/investor.
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