ExxonMobil(US:XOM)2026-02-18 21:06Business Operations - ExxonMobil's principal business involves exploration and production of crude oil and natural gas, along with manufacturing and selling petroleum products and pursuing lower-emission business opportunities[13]. - The company held over 8,000 active patents worldwide at the end of 2025, indicating a strong commitment to proprietary technology development[16]. - The number of regular employees was 62,000, 61,000, and 58,000 at the end of 2023, 2024, and 2025, respectively, reflecting a stable workforce[20]. - ExxonMobil's operations and earnings are significantly affected by changes in oil, gas, and petrochemical prices, which are influenced by local, regional, and global supply and demand conditions[25]. - The company is expanding investments in lower-emission energy and emission-reduction technologies, which depend on market growth and supportive government policies[25]. - Economic downturns and geopolitical volatility can adversely impact energy demand and the company's financial results[25]. - The company faces risks from government regulations, including potential increases in taxes and environmental compliance costs, which could affect capital expenditures and earnings[21]. - Changes in technology and consumer preferences, such as increased demand for alternative energy sources, may impact the demand for ExxonMobil's products[26]. - ExxonMobil's business results are exposed to market factors like interest rates, inflation, and currency exchange rates, which can indirectly affect energy demand[28]. - The company is subject to political and regulatory developments that may restrict its operations or access to resources, impacting its competitive position[29]. Environmental Goals and Emission Reduction - The company aims to achieve net-zero emissions for Scope 1 and 2 from operated assets, contingent on technology development and government policy support[38]. - The company has established a Low Carbon Solutions (LCS) business unit to advance technologies such as carbon capture and storage (CCS), hydrogen, and lower-emission fuels[40]. - Government actions to reduce greenhouse gas emissions may include cap and trade regimes, carbon taxes, and mandates for electric vehicle sales, which could impact investment returns and operational costs[39]. - The company recognizes the need for stable and supportive government policies to successfully develop and deploy new energy technologies at a commercial scale[41]. - The Corporation aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions in its operated assets by 2050, with specific plans for the Permian Basin to reach net-zero by 2035[205]. - Emission-reduction plans include a 20-30% reduction in corporate-wide greenhouse gas intensity and a 70-80% reduction in corporate-wide methane intensity by 2030[209]. - The Corporation is pursuing growth opportunities in lower-emission investments, including carbon capture and storage, hydrogen, and lithium for electric vehicle markets[208]. Financial Performance - Total sales and other operating revenue for 2025 decreased to $323,905 million from $339,247 million in 2024, reflecting a decline of approximately 4.0%[146]. - Net income attributable to ExxonMobil for 2025 was $28,844 million, down from $33,680 million in 2024, representing a decrease of about 14.0%[146]. - Earnings per common share for 2025 was $6.70, compared to $7.84 in 2024, indicating a decline of approximately 14.5%[146]. - Cash flow from operations and asset sales for 2025 was $55,128 million, down from $60,009 million in 2024, reflecting a decrease of about 8.5%[149]. - The Corporation's cash capital expenditures for 2025 totaled $28.99 billion, an increase from $25.65 billion in 2024[144]. - The upstream segment in the United States reported earnings of $5.06 billion in 2025, down from $6.43 billion in 2024[144]. - Non-U.S. upstream earnings were $16.29 billion in 2025, compared to $18.96 billion in 2024[144]. - The Corporation's chemical products segment reported a total income of $800 million in 2025, down from $2.58 billion in 2024[144]. Production and Reserves - As of year-end 2025, ExxonMobil's total proved reserves are reported at 19.3 billion oil-equivalent barrels (GOEB), with 7.0 GOEB classified as proved undeveloped reserves, representing 36% of total proved reserves[73]. - In 2025, ExxonMobil invested $19.0 billion to develop reported proved undeveloped reserves, including $18.8 billion specifically for oil and gas producing activities[74]. - The company transferred approximately 1.4 GOEB from proved undeveloped to proved developed reserves during the year, with significant contributions from development activities in the United States, Guyana, Kazakhstan, the UAE, Qatar, and Canada[73]. - Extensions and discoveries in 2025 added approximately 2.0 GOEB of proved undeveloped reserves, primarily in the United States and Guyana[73]. - Total crude oil and natural gas liquids production for 2025 is projected at 2,262 thousand barrels daily, an increase from 2,068 thousand barrels daily in 2024 and 1,682 thousand barrels daily in 2023, representing a growth of 9.4% year-over-year[78]. - Natural gas production available for sale in 2025 is expected to reach 8,442 million cubic feet daily, up from 8,078 million cubic feet daily in 2024 and 7,734 million cubic feet daily in 2023, indicating a growth of 4.5% year-over-year[78]. - Total oil-equivalent production for 2025 is projected at 4,736 thousand barrels daily, an increase from 4,333 thousand barrels daily in 2024, reflecting a growth of 9.3%[78]. Research and Development - The company is committed to continuous research and development to adapt to changing market and regulatory environments, including advancements in hydraulic fracturing technology[47]. - Research and development costs increased to $1,228 million in 2025 from $987 million in 2024, representing a rise of approximately 24.4%[146]. Shareholder Actions - ExxonMobil declared a dividend of $1.03 per common share on January 29, 2026, payable on March 10, 2026[118]. - The Corporation completed share repurchases of $20 billion in 2025 and expects to continue with another $20 billion in 2026, assuming reasonable market conditions[119]. - The total number of shares purchased as part of publicly announced plans in October, November, and December 2025 were 16,203,068, 13,025,924, and 14,908,290 respectively[119]. Market Outlook - ExxonMobil's long-term business planning is based on a deep understanding of market fundamentals, projecting global energy demand to rise by over 10% from 2024 to 2050, driven primarily by developing countries[180]. - By 2050, global electricity demand is expected to increase by more than 70%, with developing countries accounting for approximately 80% of this increase[182]. - Global demand for liquid fuels is projected to grow to nearly 115 million oil-equivalent barrels per day by 2050, an increase of about 10% from 2024[187]. - Natural gas demand is expected to rise nearly 20% from 2024 to 2050, with approximately 70% of that increase coming from the Asia Pacific region[188]. - Oil demand is projected to remain above 100 million barrels per day until 2050, even under aggressive decarbonization scenarios, with a minimum demand of 65 million barrels per day expected[198]. - The Corporation anticipates significant investments will be required to develop and supply resources to meet global oil and gas demand through 2050, driven by technology advancements[200].