Good morning, everyone. Welcome to ExxonMobil's fourth quarter 2025 earnings call. Today's call is being recorded. We appreciate you joining us. I'm Jim Chapman, Vice President, Treasurer, and Investor Relations. This quarter's presentation and pre-recorded remarks are available on the Investors section of our website. They're meant to accompany the fourth quarter earnings press release, which is posted in the same location. During today's presentation, we'll make forward-looking remarks, including comments on our long-term plans, which are subject to risks and uncertainties. Please read our cautionary statement on slide two. You can find more information on the risks and uncertainties that apply to any forward-looking statements in our SEC filings on our website. We also provide supplemental information at the end of our earnings slides, which are also posted on our website. And now I'll turn it over to Darren for opening remarks.

Good morning, and thank you for joining us. In 2018, we set out to transform ExxonMobil to fully leverage our unique competitive advantages. Results we share today demonstrate the significant progress we've made. We've built a higher return, lower cost, technology-led company, one that delivers superior results across market cycles. Our strategy, our advantages, and the structural value we're creating puts us in a league of our own. 2025 was a year of exceptional execution and technology-driven differentiation. We continue to deliver strong safety and reliability performance, reflecting the commitment and operating discipline of our workforce. We've already achieved our 2030 emission reduction plans for GHG emissions and flaring intensity. As of 2025, we've reduced our corporate GHG intensity by more than 20 percent, reduced upstream GHG intensity by more than 40%, and reduced corporate flaring intensity by more than 60%. We expect to reach our 2030 methane intensity reductions by the end of this year. Upstream production averaged 4.7 million oil equivalent barrels per day, with unit earnings more than double those in 2019 on a constant price basis. We've successfully delivered all 10 key 2025 projects, further strengthening our portfolio and positioning us for long-term profitable growth. And we continue to high-grade the portfolio by maintaining our disciplined approach. That approach, the same as it's been since we rolled out our strategy, increases investments in an advantaged portfolio, divests non-strategic assets, and significantly lowers cost. Bottom line, we're improving our mix and structurally reshaping the business. The results are clear. industry-leading earnings power, stronger cash flow potential, and more profitable barrels and products. In the upstream, production from advantaged assets, including the Permian, Guyana, and LNG, continues to grow. These assets have lower cost of supply, lower emissions intensity, and higher returns. We expect them to make up roughly 65% of total production by 2030. In product solutions, we're strengthening the portfolio with advantaged project startups and high value product growth, transforming lower value molecules into higher value products. These projects are expected to drive meaningful earnings growth through 2030 with 60% coming from assets already online. We're delivering consistent, rateable, organic growth anchored by our advantaged assets and projects that are expanding earnings power over time. Our fourth quarter and full year 2025 financial results reaffirm that our transformation is driving improved earnings power across a broad range of metrics. Over the past five years, our annualized shareholder return of 29% has led the industry, supported by $150 billion of distributions to shareholders during that period. Earnings, cash flow, and return on capital employ remain among the strongest in the sector, with higher upstream earnings per barrel and structurally higher returns. We continue to increase our structural cost savings in 2025, significantly outpacing competitors. In fact, our captured savings is greater than all other IOC savings combined over the same period. These improvements continue to deliver industry-leading earnings and cash flow, even in periods of lower commodity prices. Our industry-leading balance sheet, structurally lower break-evens, and level of short-cycle investments give us unmatched flexibility through the cycle. During the year, we completed $20 billion in share repurchases, retiring shares equivalent to one-third of those issued during the Pioneer transaction, significantly reducing the dilutive impacts of the acquisition. Let me turn to two of our most advantaged growth engines, Guyana and the Permian, which both continue to set records. In Guyana, we continue to deliver results never before seen in our industry and have set new standards for operational excellence. Our most recent project, Yellowtail, came online ahead of schedule, raising gross production in the fourth quarter to roughly 875,000 barrels per day. Altogether, our first four FPSOs are now producing 100,000 barrels a day above the investment basis, reflecting operational performance to date and the value of this advantaged asset. Turning to the Permian, we delivered a new production record in the fourth quarter, 1.8 million oil equivalent barrels per day, driving the highest annual company production in over 40 years at 4.7 million oil equivalent barrels per day. Technology deployment continues to be our primary focus, with lightweight propant deployed during 2025 in roughly 25% of wells. We expect that number to reach 50% of new wells by the end of this year. With more than 40 stackable technologies in various stages of testing and deployment, we expect to continue growing production at lower capital costs far into the future. Simply put, there is no near-term peak Permian for us. Our growth trajectory remains robust, and we expect to exceed 2.5 million oil equivalent barrels a day beyond 2030. The role of technology in growing value can be seen across all of our businesses. For instance, Proxima Systems continues to scale. We've more than tripled capacity this year, with growing opportunities across rebar, coatings, automotive and oil and gas applications our proximate based rebar delivers a 40 improvement in installation efficiency versus steel and delivers superior strength lightness and corrosion resistance we've recently leveraged proximate based rebar to build the foundation for a new overpass at our curl site after our technology team in india worked with our upstream team to qualify it in a heavy industrial application in carbon materials our advanced battery anode graphite program is showing exceptional performance, delivering 30% faster charging, up to 30% higher available capacity, and up to four times the battery life. In Singapore, our resident upgrade project demonstrated full capacity performance, validating proprietary catalyst technology to convert low-value fuel oil into higher-value lubricants and diesel. Our carbon capture network continues to advance. We made progress on the Rose permit, brought our first third-party CCS project online, capable of storing up to 2 million tons per year, and secured our seventh CCS contract. Taken together, these projects represent approximately 9 million tons per year of sequestered CO2. As you've heard me say before, execution excellence remains a hallmark of ExxonMobil. We commenced startup activities for all 10 key projects, meeting our 2025 goal. These included Golden Pass, LNG, and the Proxima Systems expansion. This was a record year for us in project startups, and each will play an important role in further strengthening our global portfolio and supporting long-term shareholder value. On average, our global projects organization executes about three times as many mega projects as the nearest competitor. They do this at up to 20% lower cost and 20% faster delivery schedules than the industry average. This is a testament to our disciplined approach and organizational expertise. Our transformed company will continue to build on this success in 2026 with higher structural earnings power, stronger mix, lower break-evens, and a portfolio designed to perform across commodity cycles. Our strategy is working, and the benefits are evident in operating performance, cash generation, and shareholder returns. We're capturing more value from every barrel and molecule we produce and building growth platforms with scale. We're focused on high-margin, technology-differentiated markets where our integration, process expertise, and global footprint give us a durable, material, competitive advantage. Our capital priorities remain consistent and disciplined. Invest in competitively advantaged opportunities, maintain financial strength, and return surplus cash to shareholders. We're maintaining a measured pace of share repurchases subject to reasonable market conditions while preserving flexibility to invest through the cycle. Underpinning all of this is a new enterprise-wide process and data platform that is changing how the company operates with redesigned end-to-end processes and connected data, transactions, and decision-making across every business, geography, and function. It will enable us to learn and act faster and better leverage our scale, accelerate the adoption of artificial intelligence, and integrate new solutions. It's already delivering results with much more to come. 2025 again demonstrated that the advantages we've built, the capabilities we've developed, and the performance we're delivering is creating industry-leading value for our shareholders today and far into the future.

Thank you, Darren. Before we move to Q&A, I have a few quick announcements to share. First, on February 2nd, we're launching a new individual investor-oriented page, which can be found within the main investors section of the ExxonMobil website. Our individual investors make up nearly 40% of our shareholder base, and this new site caters directly to their needs. And then on February 20th, we'll be releasing a refreshed version of our company overview presentation. Both of these can be found on the investor section of our website, and we encourage you to take a look. With that, we'll move to our Q&A session. Please note that we ask each analyst to limit themselves to one question as a courtesy to others. And operator, please open the line for our first question.

Thank you. The question and answer session will be conducted electronically. If you'd like to ask a question, please do so by pressing the star key followed by the digit 1 on your telephone. The first question comes from Devin McDermott of Morgan Stanley.

Hey, good morning. First, Kathy, I just wanted to wish you all the best and thank you for your help and positive contributions to Exxon on your time as CFO. And, you know, I look forward to working with you again in your new role. My question, I wanted to ask actually about Guyana, Darren, one of the two key growth engines on upstream that you mentioned. And the expiration license on the Statebrook block is set to expire in the back half of 2027. We've also had a large portion of the position under force majeure that sits in waters that have been disputed by Venezuela. So I'd love to hear your latest thinking on the exploration strategy leading up to that scheduled expiry in the legacy position. And then your view on the opportunity set for this force majeure area. Could it qualify for an extension? And what are some of the milestones to get into work on evaluating the resource potential?

Yeah, sure. Good morning. Devin, and thanks for the question. I think what you see us doing in Guyana is continuing in the areas that we do have seismic and have been developing, continue to take what we're learning through the wells that we're drilling in our development program to identify additional targets and drill and we still think there's opportunity in that space to explore in the block that we can currently access And then, of course, as we roll forward and have to relinquish pieces of the block, we do that based on, I think, a very well-informed understanding of the geology and the opportunity sets. The portion of the block that's under force majeure as a result of the border dispute remains there. And I think, you know, from my perspective, one of the unlocks with respect to that region will be the ruling that comes out of the International Court of Justice. That's the process that Gayon has been going through with Venezuela to align on, you know, the border to resolve the border dispute. So I think that'll be a critical milestone. Obviously, with the developments in Venezuela, perhaps we'll see an opportunity with less naval patrols. That'll make it a little more friendly environment. So we'll see how that goes. But we've got plenty of work ahead of us here in the short term. And in the longer term, we'll get into that additional acreage and see what the opportunity looks like. We're pretty optimistic. I think one of the advantages of force majeure is it pauses the clock. And so we will have an opportunity to do what we need to do in that portion of the block when it's available to us. Great. Thank you.

Thanks, Devin. The next question comes from Neil Mehta of Goldman Sachs.

Yeah, I'd just like to echo Devin's comments. Kathy, thank you for everything and enjoyed the partnership. And, Neil, welcome as well. I'd like to focus my comments on the Permian. It looked like a very good fourth quarter, Darren. You exited around 1.8 million barrels a day. Your guide for this year is 1.8 million barrels a day. If you look at the volume cadence over the course of the year, do you see upside potential to it? And just talk about the lightweight profit opportunity that you continue to see and deploy out in the field, and is that manifesting itself in potential upside to numbers?

Thank you, Neil. I appreciate the question. The one, I guess, point I'd start with is I guess I'd caution extrapolating, you know, a quarter result to an annual result. If you look at the annual production that we had in the Permian, that was a significant improvement year on year. And we expect to see that significant improvement going into 2026 versus 2025 on an annual basis. And I think what you saw in the fourth quarter demonstrates that capability. But we've always said the quarters are a little lumpy as we bring on cubes and the timing as those cubes come on. So we still feel pretty good about the developments that we've got there and pretty good about the plan that we've laid out and the volumes that we've communicated to all of you through the plan updates. With respect to the technology, I would tell you, we just had a review of this the other day with the technology group, a lot of enthusiasm for what we're seeing. And I would tell you nothing, nothing, everything basically points to, if anything, greater promise. Obviously, we've got to demonstrate that in the field. We've been deploying that pretty consistently, as I mentioned in my prepared remarks. We're going to continue to do that. There are other technologies that, as we've talked to you about as part of the corporate plan update, that frankly hold a lot of potential as well, and we're beginning to kind of feather those in. And so, you know, the challenge will be the time it takes to develop the cubes. And that's one point I would make is we're not changing our approach of maximizing ultimate recovery. And so we're still very focused on bringing these technologies to bear in our cube design, focused on maximum recovery and doing it at a lower cost. And so doing the cubes, doing those designs, and then drilling those and bringing them on takes longer for us to see the results, but ultimately gives us much better results. And so that continues to happen. And I think as we get through this year, we're going to begin to see a lot of these, some of the additional technologies that we're bringing to bear kind of manifest themselves in our results. And I feel, again, pretty optimistic that they're going to deliver some very promising results. we move forward. And frankly, from what we've seen today on a conservative basis, that takes us well beyond 2030 with our production.

And I just add, Neil, if you look at the annual numbers in the Permian, we expect to be up about 200,000 KOEBD kind of year over year. Again, that's not going to be necessarily what you see each and every quarter. And then on lightweight prop, you know, this year about 25 percent of our wells had lightweight propping. By the time we get to the end of next year, at that point when we're drilling, we should see about 50 percent of our wells having lightweight propping. So, you know, a very good performance in terms of just increasing the lightweight propping in new wells going forward. And we'll see that benefit, as Darren said, over time.

Thank you, Bill. Thank you.

The next question comes from Doug Leggett of Wolf Research.

Thanks. Good morning, everybody. And I'll add my best wishes to both the outgoing and incoming CFO. Good luck, Kathy. I hope you feel better.

Thank you.

My question is not about the dividend, Kathy. You'll be delighted.

I'm shocked. I'm shocked, Doug. You're not taking one last crack at it.

Not at all. Neil will have to pick that baton up from here. But, Darren, I do have a question about what's not in the portfolio through 2030. I'm thinking specifically about last August, I think it was, you signed an MOU in Libya. We're seeing improved PSC terms in Iraq, and there's speculation you guys are potentially re-entering there. And then, of course, there's the question over what it would take for you to re-enter Venezuela. So I wonder if you could address what's not in the plan through 2030 that could surprise on the upside.

Yeah, thank you, Doug. And you're right, there are some of these markets that have a significant potential with respect to resources, and the challenge going back in time has historically been accessing those resources with the right kind of fiscal regime and the right kind of, call it legal infrastructure, investment guarantees, and some of those things that have made it difficult to enter with the confidence that we need to compensate for the risk associated with what we do in the business of developing these resources. That, I think, over time has begun to evolve. The recognition that many of these resources have their challenges, are difficult to develop, and they need capabilities that don't exist within the country. and frankly lends itself directly to the work that we've been doing to really differentiate ExxonMobil from our competitors based on this intense focus of driving competitive advantage, driving our developments in technology, driving project execution and development, and more recently the work that we've done to consolidate all of our operations so that we operate with executional excellence. And so I think those things begin to provide an advantage that not only accrue to the company, but accrue to these resource owners. The faster that we bring on the production, the lower cost that we bring that production on, and using the technology, the higher the recovery rates all directly go to the resource owner and the benefit of the resource owners. That advantage, I think, is being recognized today, and as a result, we're getting an opportunity to look at a number of these locations and start working with them to see if we can't come to a contractual arrangement with the right kind of fiscals that reward us for the benefits we bring and reward the resource owners with a higher value proposition. I'm pretty confident that we're going to make some progress that today is not in the plan for some of the areas that you've referenced. so I do think there'll be some upside out there but as you know Doug these things tend to take some time and as we develop them and we get more assurity around some of those things we'll obviously bring those into the plan and talk to to all of you about that when it gets to a point that we've got the confidence to start baking them into the plans but but I do think the work we've been doing to strengthen our capabilities is going to have a huge payout with respect to that Darren, if I may, at the White House, you said Venezuela was uninvestable, but you might

be prepared to put a technical team in country. Has any of that happened?

Yeah. So what I would say is, you know, what I said at the White House was given the current fiscal structures in place, legal, that you couldn't invest, but that there was opportunities to address that. And I did feel like the Trump administration is committed to doing that. In fact, if you look at what they're currently focused on, it's stabilizing the country, kick-starting the economy, and then ultimately transitioning into a more representative, democratically elected government. I think those are the right objectives that the government's working on for the benefit of Venezuela and the Venezuelan people. Venezuela's got those challenges that I mentioned, which I believe with time will get addressed. The other challenge with Venezuela is those barrels are high-cost barrels, and so you need a capability to bring that to market with the right kind of technology to get low-cost supply out there. Frankly, we have that with the work that we've done up in Canada and the technology organizations focus on developing heavy oil resources. We think we bring an advantaged approach that will lead to lower cost production, higher recovery, and therefore more economic barrels onto the marketplace. So that's, I think, the opportunity set for us that will play out maybe over time. With respect to the team, I offered up, given the challenges, to send a team there to do the assessment and to offer up our perspective and what we found to the administration to help them in their decision-making as they lay out the policy. We're still committed to doing that.

Thanks, Doug. Thanks so much.

The next question comes from Bob Brackett of Bernstein Research. good morning and a bit of a follow-on to doug's question the the underpinning of your upstream production growth are these advantaged assets namely guyana the permian and lng as you think and you basically have a fairly clear line of sight into the 2030s you all tend to think even longer than that so as you think about refreshing the upstream portfolio even further out is there are a requirement that assets you add to the portfolio have to be quote-unquote advantaged assets, or will you soften that requirement? And I have a brief follow-up.

Yeah, and so maybe the way I would characterize it slightly differently, Bob, is the advantaged assets are the advantage derived from what we bring to the development of those assets, not necessarily in the resource itself. And so, you know, my challenge and the way we make these investments advantaged is by bringing a unique set of capabilities that delivers more than what the market or competitors or what the average can deliver. That advantages those investments. And I would tell you that that's not going to change for us. I continue to see with the transformation we've been making in the company the consolidation of like activities across this very broad and diverse portfolio and to centralize groups that focus on driving excellence in each of these areas that we continue to see huge opportunities to improve performance and keep getting better at what we're already pretty damn good at and so I think all of that will lend itself to then when we go into a market or into a new resource bringing an approach which is advantaged versus a market rate and therefore a return that's advantaged and that's how i would think about it and i'm i'm absolutely convinced that as where we sit today there is upside to the advantages that

we can bring and therefore i would expect going forward that we'll continue to see that even as we go into new places and and continue to grow the business and i would just add to that bob i mean as you know this is a long cycle business and return on capital employed is a really key performance indicator of how well we're deploying that capital. And if you look over the last five years, our ROSI has averaged 11%, two percentage points above our next closest peer. So I think that just speaks to the discipline and us focusing on those competitive advantages we bring to the table to just drive higher returns consistently.

Yeah, very clear. A quick follow-up. The Permian as an advantaged asset is a combination of acreage, which is finite, and technology, which is scalable. Can you talk about how you can scale the Permian Technology Toolkit? Is it scalable just within U.S. shale, just within shale, or is it perhaps scalable to a range of future extractions?

Yeah, I think it's a really good question. And I do think it's scalable. I I mean, one of the great things about having the technology organization that we have and having consolidated by capabilities across our businesses into a single technology organization is we have a very diverse set of experiences in very core technology areas that are contributing to solving problems across the entire portfolio. So we're getting a lot of input from our technical experts that have grown up in different parts of the business but now bring that experience to bear on new areas and new opportunities. So I do think we will find that as we discover and innovate, particularly for the Permian, that that will have applications across a lot of the things that we do in the upstream. In fact, we're already seeing that. Likewise, you know, what we're doing in some of the deep water has applications. So this, we're not, one of the advantages of this centralized approach that we've put in place is we're not trapping any of the innovation in any one part of the organization. It is free to flow and move to the highest value opportunity set within the company. And I think that's a huge unlock that, frankly, most of our competitors have trouble matching. The other final point I would make there is you're right about the limits in the acreage. But I continue to challenge our folks. You know, we're not the industry as a whole. The recovery rate of the oil that we know is there is still, in my mind, way too low. While we're working to improve the recovery of what we're doing on a go-forward basis, I'm also quite focused on cracking the nut of how we can go back and improve the recovery for things that have already been played out. And I think there's an opportunity there that I'm hopeful that our technology will unlock here in the future. Thank you very much. You bet. Thank you, Bob.

The next question comes from Anun J. Aram of J.P. Morgan.

Yeah, good morning. My question is on LNG. You're on the cusp of first cargoes at Golden Path. I was wondering if you could update the market on Exxon's plans to pursue FID decisions at Papua New Guinea and Mozambique and perhaps talk about how these projects stood on the global cost curve versus perhaps Gulf Coast LNG.

Yeah, sure. Thanks for the question. I would tell you, so maybe starting with the back end of your question, and then I'll circle back around to the progress on Golden Pass. But with respect to the competitiveness of what we're trying to do in Mozambique and Papua New Guinea, as I talked about and have been talking about for many years now, that as part of any of the projects that we FID and the developments that we put in place, they have to be cost competitive. They have to be advantaged versus the rest of industry. They have to be on the low end of the cost of supply curve or we will not progress those. And so the simple answer to how we're looking at Papua New Guinea and Mozambique is the work that the projects organization has done to develop the project design has led to those being very cost competitive, very advantaged with respect to the market. And so we feel good about the competitiveness of those. Obviously, there's challenges to continue to work our way through, but we feel like we've got a very good basis for progressing those projects. My expectation is with Mozambique, we'll see something here as we move through this year, probably on the back half of the year, with respect to an FID, if things go kind of to plan. So I feel good about that. And I would tell you that the time, the delay that we've had with the force majeure in Mozambique, we weren't sitting in our hands during that time frame. and we were challenging our project's organization to keep driving innovation and find ways to reduce that cost, and they were very successful at doing that. So we actually used the delay productively to come up with what we think is a much more cost-advantaged design than we had originally. So as we learn and get better across this portfolio of things that we're doing, the opportunity is there for us to fold them into the next development, and that's certainly the case in Mozambique. So I feel good about those, and the same with Papua New Guinea as we work our way through that development. With respect to Golden Pass, I would just say that venture has done a really good job of recovering from the bankruptcy. Obviously, that was a huge break, but really got back on track and feel good about the progress they've made. We mechanically completed that project in the fourth quarter of last year. We're basically into commissioning and startup now. My expectation is we will see kind of first LNG produced in very early March is what it's looking like right now.

Thanks, everyone.

Great, thanks.

The next question comes from Betty Jang of Barclays.

Good morning. Thank you for taking my question. It's on the corporate-wide data system transformation, Darren, that you alluded to earlier. Just want to get more color on what that process entails and how should we expect this to manifest, maybe financially across the portfolio? Is it just more structural cost savings, better productivity, and just how material could it be over time?

Yeah, thanks, Betty. But yeah, it is a very material part to the transformation that we've been on. And just to kind of maybe set the context of what we're doing here, if you go back in time with the way we had organized the company, we had actually delegated the development of the systems and the systems that support the businesses to the business themselves. So we had a number of different ERP systems, more than 10 across the scope of our operations. And over time, each of our businesses and organizations developed their own data construct, their own data nomenclature. And so it made it very, very difficult for us to really take advantage of the scale across all of our businesses in areas where we had a whole lot of duplication or similarities. As we started the restructuring in 2018 and aligning all of our businesses into value chains and then pulling out some of the centralized organization, As we've talked about, we've made huge progress with that work in terms of delivering structural cost savings, $15 billion to date through 2025. And as I said this morning on the call, that's more than any of our competitors combined. And that is a function of and driven primarily by the discipline that we have. It's the same discipline we had when we chose to invest during the downturn when everybody else was stepping back from the marketplace and hunkering down. It's that same discipline that we had in not investing in the green businesses where we had no real advantages, no real expertise, even though many in our industry chose to go in that direction. It's the exact same discipline we've had in rolling out the new operating model, which is different than what anybody else in the industry is doing the other day. And that model is allowing us to deliver the business that we have. And that model and that discipline is going to underpin this new ERP system. One data construct for the entire corporation. One data set, one set of nomenclatures. It will be the first time in the history of this company that we can actually tap into everything that we're doing across the company. And when you couple that with the opportunity with AI and the data set that that represents, I don't think there's a company out there that can match what we're trying to accomplish here. And the progress that we're making, despite the scale of this, has been really, really impressive. We remain on schedule and on track, and we're beginning to see the benefits accrue even now. Maybe I'll let Kathy touch on that because that is one of the areas in her portfolio that she's been driving.

Thanks very much, Darren. So just to give you a couple stats to understand where we've come from and where we're headed to, you know, all companies need to, who operate on an SAP platform, need to upgrade as SAP is moved to S4 HANA. And so we were facing a need to upgrade, but we historically, as Darren said, operated more than 10 ERP systems. We did it on-prem, and we had more than 65 million lines of custom code in that, the highest of any of SAP's customers. As a result of that, we couldn't easily take upgrades to software, right? So we couldn't benefit from that because of the cost of having to plug the new upgrade into what was a very bespoke software system that we had created was just too high. You know, we, as a result of now having centralized organizations, are able to really standardize and simplify our processes. We're going to have 97% fewer profit centers, 70% fewer cost centers, and the core of our platform is going to be clean, which allows us to take upgrades easily. In fact, during this design period, we've already taken at least one upgrade into the development platform that we're utilizing. And we've had some early wins as we started to implement some of the software that surrounds this system. So we had a successful implementation of group reporting, of Blackline, of some supply chain technology that pushes us much more towards not just automation, but being able to use artificial intelligence to do things like plot out the logistics across our system for things like Marines. So it's a really big change, but we will both get great simplification, automation, and the ability to apply AI at scale much more easily. Thanks very much for the question.

Yeah, the other thing I just had as a final point is by through that automation, we're really allowing freeing up time for folks to focus on the things where they can add unique value. So not only are we going to get a lot of efficiencies, I think we're going to see the effectiveness improve. So we'll basically benefit on both sides, both the revenue and the cost side.

Yeah, a much better experience for our people who still today spend way too much time, I'd say, sorting through our data and information and reporting the numbers, you know, as opposed to higher-level activity that's really driving insights and actions across the business. Thank you.

Thank you. very much for the next question comes from steve richardson of evercore isi hi good morning um i was wondering darren if you could talk um we're seeing a pretty robust asset market out there in terms of where um you know private and other assets not only in the lower 48 but elsewhere transacting um i was wondering if you talk about maybe the role of uh divestitures and you know potentially you know contract expiries and legacy assets i think you've been very clear on the uplift that's coming from your upstream in terms of margins with the advantaged assets but the other piece of it is what could be leaving the portfolio potentially to

accelerate that margin uplift so just wondering if you could talk uh talk about the environment as you see it there yeah no thanks i think and you touch on one of the areas that has been a a pretty concentrated focus for us really over the last five years just around as we bring in new opportunities bring technology to play grow these advantage assets is focusing our efforts on that and for the the assets that we have out there that then no longer compete in the portfolio because they don't have the same opportunity that we have with the rest of the portfolio is an opportunity to sell that off to others who don't have the kind of the depth and advantage projects that we have and so we've been going through that uh fairly rigorously very thoughtfully we're not you know russian we're going to find buyers who place a higher value on it than we've got and we've been very successful with that as we've talked about over the quarters with respect to the amount of uh divestments that we've had in fact i think the number is up to 25 billion dollars since 2019 with the investments that we had both from the upstream and in our product solutions business. In fact, just last year, we closed our sale of our French affiliate. And so it's been a continuous making sure that what's left in the portfolio can compete for capital is advantage versus the rest of industry, and then making sure that they're at the left-hand side the cost of supply curve so low cost so they can compete across whatever part of the cycle is in and that is paying huge dividends now as we continue to kind of go through cycles so that's going to be a constant focus and we get ready we don't try to time the market per se but we do lean into the market when the opportunities are there and with a portfolio that's ready to go on the flip side of that you know continue to look for inorganic opportunities where we can bring an advantage and as we've talked about many times in the past where you know one plus one equals three or more and that continues to be a focus it's got to be accretive it's got to leverage some of the things that we can uniquely bring and it's got to be competitive with our other investment opportunities and that remains a continued focus across all of our businesses you bet thank you The next question comes from Sam Margolin of Wells Fargo.

Hey, thanks so much for the question.

Yeah, thank you, Sam. And I think, you know, you actually touched on one of the advantages of the work that we're doing and sticking to, you know, what I'd call is our hydrogen and carbon molecule business is a lot of the applications that we're developing, the new applications that we're developing, leveraging the same capabilities, go into the products that we're currently serving with our traditional businesses. And so there is a synergy that exists between the different elements of the technology that we're developing. But each of them are driven by a focus on the molecule side of the equation. So on the battery equation, it's really around the recognition that the world is going long carbon as we clean up products and focus on lowering emissions. carbon becomes a cheaper and cheaper feedstock what can we make with carbon our technology organization developed a molecule that has properties that really lend themselves to battery applications that result in these types of performance step changes in performance with batteries those are real we've tested them here internally we've tested them externally we're working with OEMs and there's a lot of optimism around that application and of course the challenge then is building at scale the production facilities and do that in a way that's very cost competitive and can compete with sources supply all around the world. And we feel really good about the progress we're making there and we're continuing to advance that. That goes into battery applications, obviously. Lithium obviously goes into battery applications, so there's a synergy there. But we came at that, again, differently. It wasn't that we wanted to go into the battery business it was you know what products are going to be in demand that we think we can bring an advantage to and produce at a low cost to supply and realize a margin lithium i think continues to hold promise but there's work to be done around ensuring that we can put a process in place that brings lithium to market at a cost very competitive with the cash cost of existing producers and so that's a piece of work that we're doing or uh demoing that that technology to convince ourselves that we can get the cost where we want them so that we will have a robust robust resilient business irrespective of of where the pricing goes and then with proxima it too has uh you know it's got a lot of applications in terms of uh you know rebar that we're making the coatings that we're using in the shipping business and the piping business pipeline business oil and gas business. And we can also use it in injection molding and to make battery holders. And so there's a lot of overlap here, but it's really a function of understanding where those applications can bring the most value, bring a value in use versus the incumbents, and then build those businesses up and sell into them. So I think we're going to find that portfolio over time continues to grow, and we're working with a set of customers that, frankly, are leveraging each of those products in addition to our existing traditional products.

You bet.

The next question comes from Jean Ann Salisbury of Bank of America.

Hi, good morning. ExxonMobil is a leader in carbon capture and storage. There have been conflicting things that I've read and heard about data center interest in using CCUS as an offset to emissions. From your standpoint, is this interest real, and do you see this as being a potential material uplift for that segment?

Yeah, thanks, Gina, for the question. I recognize your comment with respect to the ups and downs and conflicting information you may be reading. I think, you know, like a lot of these things that start off with a lot of hype and enthusiasm, It takes time for the market to kind of work through and land on or ground on the realities of the opportunities set out there. And I think as the development of these data centers have progressed and the desire to have low-carbon data centers and what opportunities exist, I think people have begun to realize that certainly in the time frame that people are talking about today, the really only viable option at scale today here in the very near to medium term is gas-fired power generation with carbon capture. And we're uniquely positioned with respect to that with the investment that we made in Denberry and now today have the only scale end-to-end carbon capture and sequestration system and, frankly, the only integrated set of capabilities that can follow the molecule from capture all the way down through the pipe and into the subsurface. And so that unique offering, I think, puts us in a position to have really substantive conversations with some of the hyperscalers, and I would say that today we are engaged and very serious, substantive conversations with a number of the hyperscalers. There is a commitment to finding a competitive way to decarbonize these data centers. We have an offering with respect to a site and location that I think meets those needs, and we're kind of working our way through the commercial construct. And my hope is and expectation is we should see that work manifest itself, hopefully by year end with a project announcement. But I think it's serious right now.

Very clear.

The next question comes from Paul Chang of Scotiabank.

Paul, do we have you? Not hearing you on this end.

Thank you. Darren, I think over the past several years, you guys have done a good job in managing the base due to i think both the asset mix as well as the technology application and all that so can you tell us that today what is your base underlying decline for your upstream portfolio we should assume and also in your manufacturing operation whether it's refining or chemical For the cycle, what is the expected, needed downtime or that you're available uptime? And from that standpoint, if this is where you are, where you see is the biggest opportunity for the next five years to further improve on those.

Yeah, thank you, Paul. Well, what I would say is we're at the very beginning of what I think is the ultimate capture of the potential that we're unlocking with the transformation that we're making here. And I would say we're very early into bringing the technology, you know, the weight and the power of our technology organization to bear on the areas that you're talking about in terms of depletion rates and how quickly we can offset those and the growth that we're bringing in. If you look at, frankly, the plans that we've got out past 2030, we're continuing to grow production and therefore offsetting any depletion. And as we continue to do more work, bring technology on, use the supercomputer that we have and the algorithms we have to better understand the movement of the hydrocarbon underground and tap into those things, we're improving their recovery at very low cost. So I think, you know, we haven't reached the end of that string yet. You know, there's still an opportunity there. And so I don't know ultimately where we get to, but I can tell you that the organization is very motivated to continue to use the tools and the capabilities that we're unlocking to change the curve and to change the slope of that curve. And I tell you today, I can't give you an answer specifically what that's going to look like because we haven't gotten to the end of that journey. On our product solutions manufacturing facilities, again, I would tell you we just formed at the beginning of this year our global operations organization where we bring together all of our operating organizations to basically work to and raise the standard and basically do what we've been doing in supply chain and projects and technology. we had prior to that had set up a global operations organization to support all of the businesses and to bring kind of the best thinking the best practices on reliability and safety and even with this centralized organizations bringing support to the existing operations that were embedded in the businesses we saw material improvements and and the cost of maintenance and improvements in reliability, improvements in safety. And so we demonstrated to ourselves that the power of this collective thinking and taking the best of all is really bringing bottom-line value. This next step that we've taken with the operations organization is just going to enhance that and supercharge it. So I think we're going to see reliability and availability and uptime continue to improve across the portfolio, which ultimately brings down our cost makes us a lower cost supplier which allows us to manage through the cycles even better and so i think there's a continues to be a lot of upside with respect to those two areas that you mentioned and then i would just broadly say across the whole portfolio and we're just getting warmed up on some of these centralized organizations the supply chain organization you know what we're doing in procurement what we're doing in our business solutions group so there's a lot of um i'd say uh work going on now and we have a very clear line of sight of how we're going to improve the effectiveness of the organization as well as the efficiency so i would just say uh we've got plans out to 2030 that reflect some of that my view is we're going to improve upon those things as we actually learn more and uh mature these brand-new organizations.

Hey, Darren, do you have a number you can share? What is the base? Be kindly at this point in your upstream portfolio.

No, Paul, I don't have a number for that. Hey, Paul, thank you.

Thank you, Paul. And, Operator, unfortunately, we have time for just one more question.

We have time for one more question. Our final question will be from Viraj Borkhattari of RBC. Steve.

Hi, thanks for taking my question and squeezing me in. I wanted to ask about the chemical segment, base chemical segment. It's obviously been in a tough spot for a while now. Just, you know, from your global perspective, are you seeing any signs of green shoots in base chems, either on the supply or demand side with your competitors? Thank you.

Yeah, thanks, Paraj. I think, you know, So like all of our businesses, there's the tail of two halves. From a demand standpoint, I would say continue to see very robust, strong demand across the world for the chemical products. The challenge with respect to the margins that are out there is obviously from the supply side of the equation. So despite record levels of demand and very good growth in demand, there continues to be a lot of capacity that comes on that suppresses the margin. So I think that's, as you look at the landscape out there, that's the challenge. A good healthy market, a good demand for the product, good applications that continue to grow. Our focus has been within that context, again, with the cost efficiencies that we've been capturing, with the effectiveness that we've been driving, And our focus on high-value products is trying to kind of differentiate ourselves with respect to the marginal supplier that's setting the price out there to get an advantage and to get an improved margin. I think that's been working in our favor in addition to the feed advantages that we've got with the locations that we have. And so our focus continues to be the same, sell into high-value products, continue to drive costs down, be efficient, take advantage of every lever that you've got to pull, lean heavily into the centralized organizations to help improve the efficiency of what you're doing and the effectiveness of our supply chains. I think all those are paying off. It allows us to be more competitive and deliver better results than many of our competitors are able to do in this space today. But the ultimate, you know, how this resolves itself from a market standpoint, I think, you know, hard to judge just based on the competitive dynamics that are out there. Thanks for your question. Listen, we've reached the end of the call, and I want to, I guess, thank all of you for the recognition that you've given Kathy. And I wouldn't want to end the call without adding to the comments that many of you made. um kathy i want to thank you for everything you've done for the company you know kathy came in at a very unique time in the company at a level in the company that frankly we've never brought somebody in from the outside and i think uh became an instant partner to the rest of the management committee i have benefited greatly by having her at my side and engaged in discussions over the last five years uh so it's been a great ride appreciate your commitment and the hard work that you've made and in particular over the last year as you struggled to kind of overcome some of your personal challenges never never missed a beat never um never uh compromised on the contributions that you're making to the company and so you're definitely going to be missed but we're really looking forward to you uh accelerating your recovery wishing you and and ed and your family just a really long healthy and happy retirement i will say that um we're happy that one of the first things that Kathy got engaged in when she when she stepped in was to make sure that we had a very robust succession plan and happy to have Neil who we've been training here for several years and now bring back into the mix. I think we're all real confident that Neil's going to do a great job stepping into the big shoes that Kathy has left behind and fortunate for Neil they're not high heels. So I think he got an advantage there. But thank you, Kathy. Thanks for everything.

Thanks very much, Darren. Listen, I'm humbled and honored by having the opportunity to have worked here at ExxonMobil. And I've hugely appreciated your support, Darren, the support of the management committee and the board. And hopefully I leave things in a little better place than when I first came here. I'm going to miss our people the most. You know, our people are amazing and I'm incredibly proud of what they've accomplished over the last five years and finally I just say I'm thrilled to have Neil Hansen stepping in my place you know he's he has a little bit of experience 25 years at the company most of that actually in the finance organization so he's just the right person at the right time and it's really terrific to have such a smooth transition and he's here with us I don't know you want to say a couple words Yeah, thank you, Darren, and thank you, Kathy.

We wish you the very best. Your positive impact on XL Mobile will be long-lasting, and we are all truly grateful for everything that you've done for us. And, you know, personally, I'm very excited to step into the role as CFO and build on really the strong, unmatched foundation that we have in place as a company. And I look forward to connecting again with the investment community, getting to catch up with those of you that I already know, and then getting to meet those who I have not met yet, hopefully sometime in the near future.

Okay, thank you, Neil. Thank you, Darren. Thank you, in particular, Kathy. And thanks to all of you for joining today and for your questions. We'll post the transcript of this webcast on the investor section of our website next week. And that concludes today's call. Have a good weekend.