Exxon Mobil Corporation Company Intelligence Report reproof · EXXON MOBIL CORPORATION, COMPANY...

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REFERENCE CODE GDGE0678V | PUBLICAT ION DATE OCTOBER 2014

EXXON MOBIL CORPORATION, COMPANY INTELLIGENCE REPORT



Executive Summary

Exxon Mobil Corporation, Key Valuation Metrics, 2013 Stock exchange NYSE

Stock symbol XOM

Current share price (US$ per share) as of September 30, 2014 XX

Target price (US$ per share) XX

2013 revenue (US$ bil) XX

Market capitalization (US$ bil) as of September 30, 2014 XX

Estimated EV (US$ bil) XX

52-week high/low (US$ per share) XX

Source: GlobalData; Google Finance, 2013 EV: Enterprise Value

Exxon Mobil Corporation vs. Peer Group, Operational Performance, 2013

Parameters ExxonMobil Peer average*

Proved reserves (mmboe) XX XX

Oil/gas share in total proved reserves (%) XX XX

Total production (mmboe) XX XX

Lifting cost (US$ per boe), three-year XX XX

Net-back (US$ per boe), three-year XX XX

Recycle ratio, three-year XX XX

Oil and gas F&D cost per boe, three-year XX XX

Proved acquisition cost (US$ bil), annual XX XX

Reserve replacement cost (US$ per boe), annual XX XX

Reserve life index XX XX

Development costs (US$ bil) XX XX

Acquisition costs (US$ bil) XX XX

Total net developed and undeveloped acreage (million) XX XX

Undeveloped acreage as share of total acreage (%) XX XX

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014] boe: barrels of oil equivalent; F&D: Finding and Development; mmboe: million barrels of oil equivalent *Peers include BP, Chevron, ConocoPhillips, Royal Dutch Shell and Total

Strong Line-Up of Upcoming Projects to Lead Production Growth

Exxon Mobil Corporation’s (ExxonMobil) overall production declined at a negative Compound Annual Growth Rate (CAGR) of XX% between 2010 and 2013, and at a negative Year-on-Year (YoY) rate of XX% from 2012 to 2013, due to the decline of natural production from maturing assets. However, the company has a stream of upcoming projects in the pipeline to guide its production growth between 2014 and 2017, and further in the future. ExxonMobil currently has an inventory of over XX major upcoming projects located in various geographical regions, covering different resource types such as conventional, unconventional gas and oil, and heavy oil/oil sands, Liquefied Natural Gas (LNG), deepwater, arctic and acid/sour gas resources. The company brought XX projects online in 2013, including the Kearl oil sands project and the Syncrude project in Canada, the Kashagan phase 1 project in Kazakhstan, Telok in Malaysia, and the Kipper Tuna and Turrum projects in Australia. It intends to start-up XX major projects between 2014 and 2017, including XX projects during 2014.

Development of Unconventional Plays and Deepwater Projects to Drive Oil and Liquids Growth

ExxonMobil possesses significant unconventional resources in the US, Canada, Colombia, Argentina and Germany. The majority of the company’s unconventional resources are located in the US and Canada, including major unconventional resource plays such as the Haynesville, Marcellus, Barnett, Fayetteville Woodford, and Bakken shales in the US, and the Horn River and Firebag fields in Canada. The liquids composition in ExxonMobil’s total production increased from XX% in 2011 to XX% in 2013, while the liquids and liquids-linked gas volumes accounted for XX% of total production in 2013. The company plans to increase this proportion to approximately XX% in 2014, XX% in 2015, XX% in 2016 and XX% in 2017, by bringing major projects

Exxon Mobil Corporation, Company Intelligence Report 3

© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.


Executive Summary

online and engaging in other relevant activities. Accordingly, ExxonMobil has increased its focus on the exploration and development of its liquid-rich assets by investing significantly in these areas. The company intends to continue to develop its liquids-rich North American unconventional resources in order to drive the growth of its liquids production growth. The company’s assets in North America alone are expected to contribute XX million barrels of oil equivalent per day (mmboed) to its total production, up from XX mmboed in 2013. In addition, ExxonMobil’s upcoming deepwater projects for the period between 2014 and 2017 include Hadrian South (2014), Lucius (2014), and Julia phase 1 (2016).

2014 Update

ExxonMobil’s production volumes declined by XX% to XX million barrels of oil equivalent per day (mmboed) in H1 2014, compared with XX mmboed in H1 2013. Liquids production decreased by XX thousand barrels of oil per day (mbd) from XX million barrels oil per day (mmbd) to XX mmbd during the same period, while natural gas production declined by XX million cubic feet per day million cubic feet per day (mmcfd) from XX billion cubic feet per day (bcfd) to XX bcfd. This decline in natural gas production was due primarily to natural field decline and diminished demand in Europe, which were partially offset by project ramp-up, work programs, and reduced downtime.

The Papua New Guinea (PNG) LNG project started up in April 2014 and the Cravo, Lirio, Orquidea and Violeta (CLOV) project became operational in June 2014. At the Sakhalin project, which is expected to start production at the end of 2014, the company continued its development activities and installed the topside of the Berkut platform onto the gravity-based structure at the Arkutun-Dagi field. In Argentina, the company drilled and completed two operated horizontal wells, the Bajo del Choique X-2 and the La Invernada X-3, in the Vaca Muerta formation. The Bajo del Choique X-2 well showed an average Initial Production Rate (IPR) of XX barrels of oil per day (bd), while the La Invernada X-3 well will be flow-tested during Q3 2014. In Tanzania, ExxonMobil made an additional discovery (Piri-1 well) of XX trillion cubic feet (tcf) of gas in Block 2, together with its partner Statoil. In Iraq, the company is continuing its drilling activities on two blocks in the Kurdistan region. In Romania, the company drilled the Domino-2 well in the Neptun Block in the Black Sea.



Executive Summary

Exxon Mobil Corporation, Key Production Data, 2010–2013

Parameter Unit 2010 2011 2012 2013 Crude oil and liquids mmbbl XX XX XX XX

Natural gas bcf XX XX XX XX

Total production mmboe XX XX XX XX

Oil as percentage of total production

% XX XX XX XX

Production growth % XX XX XX XX

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014] bcf: billion cubic feet; mmbbl: million barrels of oil

Exxon Mobil Corporation, Key Cost per boe, 2010–2013

Parameter Unit 2010 2011 2012 2013 F&D cost per boe, three-year

US$/boe

XX XX XX XX

Reserve replacement cost per boe, three-year

US$/boe

XX XX XX XX

Oil and gas finding cost per boe, three-year

US$/boe

XX XX XX XX

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014]

Exxon Mobil Corporation, Key Valuation Metrics, 2010–2013

Parameter Unit 2010 2011 2012 2013 EV/reserves US$/

boe XX XX XX XX

EV/production US$/boe

XX XX XX XX

EV/DACF X XX XX XX XX

EV/EBITDA X XX XX XX XX

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014] EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization; DACF: Debt-Adjusted Cash Flow

Exxon Mobil Corporation, Key Production Data, 2010–2013

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014] LHS: Left Hand Side

Exxon Mobil Corporation, Key Valuation Metrics, 2010–2013

Source: GlobalData, Oil and Gas eTrack, Advanced Company Operational and Financial Benchmarking [Accessed on July 12, 2014] RHS: Right Hand Side

Exxon Mobil Corporation, Key Cost per boe, 2010–2013





Executive Summary

Exxon Mobil Corporation, Key Reserves and Reserves Metrics, 2010–2013


Exxon Mobil Corporation, Result of Oil and Gas Operations, 2010–2013

Parameter Unit 2010 2011 2012 2013 Oil and gas revenue per boe

US$/boe XX XX XX XX

Lifting cost per boe, three-year

US$/boe XX XX XX XX

Net-back per boe, three-year

US$/boe XX XX XX XX

Recycle ratio, three-year

% XX XX XX XX

Source: GlobalData, Oil and Gas eTrack, Companies operational and financial database [Accessed on July 12, 2014] DD&A: Depreciation, Depletion and Amortization

Exxon Mobil Corporation, Key Reserves and Reserves Metrics, 2010–2013

Parameter Unit 2010 2011 2012 2013 Proved crude oil reserves

mmbbl XX XX XX XX

Proved natural gas reserves

bcf XX XX XX XX

Proved total oil and gas reserves

mmboe XX XX XX XX

Oil as percentage of total reserves

% XX XX XX XX


Exxon Mobil Corporation, Result of Oil and Gas Operations, 2010–2013





Table of Contents

Table of Contents

Table of Contents ............................................................................................................................... 6

1.1 List of Tables ...................................................................................................................... 12

1.2 List of Figures ..................................................................................................................... 15

2 Exxon Mobil Corporation, Company Overview ........................................................................ 22

3 Exxon Mobil Corporation, Key Highlights ................................................................................. 26

3.1 Stream of Major Upcoming, Value-Creating Projects to Lead Production Growth ............... 26

3.1.1 Liquids Growth Plan to Drive Production and Profitability ................................................ 29

3.2 Large Developed and Diversified Reserves Base to Support Long-Term Production .......... 31

3.3 Leading Deepwater Capability ............................................................................................ 33

3.4 Leading Arctic Capability ..................................................................................................... 34

3.5 Strong Financial Performance and High Financial Leverage ............................................... 35

4 Exxon Mobil Corporation, SWOT Analysis............................................................................... 39

4.1 Strengths ............................................................................................................................ 39

4.1.1 Steady Reserve Growth and Relatively Large Reserve Base.......................................... 39

4.1.2 Balanced and Diversified Asset Portfolio, and Globally Integrated Operations ................ 43

4.1.3 Strong Balance Sheet and History of Sufficient Cash Flows ........................................... 46

4.1.4 Development of High-Impact Technologies..................................................................... 47

4.2 Weaknesses ....................................................................................................................... 48

4.2.1 Exploration Drilling Success Ratio .................................................................................. 48

4.2.2 Declining Production Volumes ........................................................................................ 49

4.2.3 Environmental Impact ..................................................................................................... 51

4.3 Opportunities ...................................................................................................................... 51

4.3.1 Substantial Resource Base to Enhance Production ........................................................ 51

4.3.2 Development of Liquid-Rich Assets ................................................................................ 54

4.4 Threats................................................................................................................................ 55

4.4.1 Ebola Outbreak and Civil Unrest in Africa and Middle-East ............................................. 55




Table of Contents

4.4.2 Highly Volatile Commodity Prices ................................................................................... 55

5 Acreage ................................................................................................................................... 57

6 Exxon Mobil Corporation, Exploration and Development Overview ......................................... 62

6.1 The Americas ...................................................................................................................... 68

6.1.1 US .................................................................................................................................. 68

6.1.2 Canada ........................................................................................................................... 74

6.1.3 Argentina ........................................................................................................................ 76

6.1.4 Brazil .............................................................................................................................. 76

6.1.5 Colombia ........................................................................................................................ 76

6.1.6 Guyana ........................................................................................................................... 76

6.1.7 Venezuela ...................................................................................................................... 76

6.2 Europe ................................................................................................................................ 77

6.2.1 Faroe Islands .................................................................................................................. 79

6.2.2 Germany ......................................................................................................................... 79

6.2.3 Greenland ....................................................................................................................... 79

6.2.4 Ireland ............................................................................................................................ 80

6.2.5 Italy ................................................................................................................................. 80

6.2.6 Netherlands .................................................................................................................... 80

6.2.7 Norway ........................................................................................................................... 80

6.2.8 Poland ............................................................................................................................ 81

6.2.9 Romania ......................................................................................................................... 81

6.2.10 Turkey ............................................................................................................................ 82

6.2.11 Ukraine ........................................................................................................................... 83

6.2.12 UK .................................................................................................................................. 83

6.3 Africa .................................................................................................................................. 83

6.3.1 Angola ............................................................................................................................ 85

6.3.2 Chad ............................................................................................................................... 87




Table of Contents

6.3.3 Equatorial Guinea ........................................................................................................... 87

6.3.4 Gabon............................................................................................................................. 87

6.3.5 Liberia............................................................................................................................. 87

6.3.6 Libya ............................................................................................................................... 87

6.3.7 Madagascar .................................................................................................................... 87

6.3.8 Nigeria ............................................................................................................................ 87

6.3.9 Republic of Congo .......................................................................................................... 89

6.3.10 South Africa .................................................................................................................... 89

6.3.11 Tanzania ......................................................................................................................... 90

6.4 Asia ..................................................................................................................................... 91

6.4.1 Azerbaijan ...................................................................................................................... 92

6.4.2 China .............................................................................................................................. 92

6.4.3 Indonesia ........................................................................................................................ 92

6.4.4 Iraq ................................................................................................................................. 93

6.4.5 Kazakhstan ..................................................................................................................... 93

6.4.6 Malaysia ......................................................................................................................... 94

6.4.7 Qatar .............................................................................................................................. 94

6.4.8 Russia ............................................................................................................................ 94

6.4.9 United Arab Emirates ...................................................................................................... 94

6.4.10 Vietnam .......................................................................................................................... 95

6.5 Australia/Oceania ................................................................................................................ 95

6.5.1 Australia ......................................................................................................................... 96

6.5.2 Papua New Guinea ......................................................................................................... 97

7 Capital Expenditure ................................................................................................................. 98

7.1 Costs Incurred................................................................................................................... 101

8 Exxon Mobil Corporation, Production Overview ..................................................................... 105

8.1 Production Profile .............................................................................................................. 105




Table of Contents

8.2 US..................................................................................................................................... 108

8.3 Canada/South America ..................................................................................................... 109

8.4 Europe .............................................................................................................................. 111

8.4.1 Germany ....................................................................................................................... 112

8.4.2 Italy ............................................................................................................................... 112

8.4.3 Netherlands .................................................................................................................. 112

8.4.4 Norway ......................................................................................................................... 112

8.4.5 UK ................................................................................................................................ 113

8.5 Africa ................................................................................................................................ 113

8.5.1 Angola .......................................................................................................................... 114

8.5.2 Chad ............................................................................................................................. 114

8.5.3 Equatorial Guinea ......................................................................................................... 114

8.5.4 Nigeria .......................................................................................................................... 114

8.6 Asia ................................................................................................................................... 115

8.6.1 Azerbaijan .................................................................................................................... 116

8.6.2 Indonesia ...................................................................................................................... 116

8.6.3 Iraq ............................................................................................................................... 116

8.6.4 Kazakhstan ................................................................................................................... 117

8.6.5 Malaysia ....................................................................................................................... 117

8.6.6 Qatar ............................................................................................................................ 117

8.6.7 Russia .......................................................................................................................... 117

8.6.8 UAE .............................................................................................................................. 118

8.7 Australia/Oceania .............................................................................................................. 118

9 Exxon Mobil Corporation, Forecast Production and Financial Statements ............................. 120

9.1 Income Statement, 2011–2018 ......................................................................................... 121

9.2 Balance Sheet, 2011–2018 ............................................................................................... 122

9.3 Cash Flow Statement, 2011–2018 .................................................................................... 123




Table of Contents

10 Exxon Mobil Corporation, Valuation....................................................................................... 125

10.1 Net Asset Value Methodology ........................................................................................... 125

11 Exxon Mobil Corporation, Peer Comparison .......................................................................... 127

11.1 Share Price Performance .................................................................................................. 127

11.2 Operational and Financial Performance ............................................................................ 128

11.3 Key Financial and Operational Ratios ............................................................................... 135

12 Exxon Mobil Corporation, Production and Reserves Trends .................................................. 140

12.1 Total Oil and Gas, Reserves and Production .................................................................... 140

12.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2009-2013 ............. 140

12.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2009-2013 ..................................................................................................................................... 142

12.1.3 Total Crude Oil and Natural Gas Reserve Changes, 2009-2013 ................................... 145

12.2 Crude Oil/Liquids Production and Reserve ........................................................................ 147

12.2.1 Crude Oil/Liquids Production and Reserve Trend, 2009-2013 ...................................... 147

12.2.2 Crude Oil Production and Reserves By Country/Region, 2009-2013 ............................ 149

12.2.3 Crude Oil/Liquids Reserve Changes, 2009-2013 .......................................................... 152

12.3 Natural Gas Production and Reserve ................................................................................ 154

12.3.1 Natural Gas Production and Reserve Trend, 2009-2013............................................... 154

12.3.2 Natural Gas Production and Reserves, By Country/Region, 2009-2013 ....................... 156

12.3.3 Natural Gas Reserve Changes, 2009-2013 .................................................................. 159

12.4 Total Crude Oil and Natural Gas Reserves Life Index ....................................................... 161

12.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 2009-2013 ................................ 161

12.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2009-2013 162

13 Exxon Mobil Corporation, E&P Costs Trends ........................................................................ 166

13.1 Allocation of the Upstream Capital Expenditure ................................................................ 166

13.1.1 Upstream Capital Expenditure, 2009-2013 ................................................................... 166

13.1.2 Acquisition Costs By Country/Region, 2009-2013 ......................................................... 168

13.1.3 Exploration and Development Costs, By Country/Region, 2009-2013........................... 171




Table of Contents

13.2 Oil and Gas Cost Per boe, US$/boe .................................................................................. 174

13.2.1 Oil and Gas Cost Per boe, US$/boe, 2009-2013 .......................................................... 174

13.2.2 Oil and Gas Cost Per boe, US$/boe, By Country/Region, 2009-2013 ........................... 176

14 Exxon Mobil Corporation, Reserve Replacement Ratio ......................................................... 181

14.1 Oil and Gas Production Replacement Ratio ...................................................................... 181

14.1.1 Oil and Gas Production Replacement Ratio, 2009-2013 ............................................... 181

14.1.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2009-2013 ............... 184

15 Exxon Mobil Corporation, Results of Oil & Gas Operations Trend ......................................... 193

15.1 Oil and Gas Revenue and Expenses ................................................................................ 193

15.1.1 Oil and Gas Revenue and Expenses, 2009-2013 ......................................................... 193

15.1.2 Oil and Gas Revenue and Expenses, By Country/Region, 2009-2013 .......................... 195

15.2 Oil and Gas Revenue and Expenses, Per boe .................................................................. 206

15.2.1 Oil and Gas Revenue and Expenses, By boe, 2009-2013 ............................................ 206

15.2.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 2009-2013 ............ 208

15.3 Oil and Gas Performance Metrics ..................................................................................... 217

16 Exxon Mobil Corporation, Land Holdings and Well Data........................................................ 219

16.1 Developed and Undeveloped Acreage .............................................................................. 219

16.1.1 Gross and Net Developed and Undeveloped Acreage, 2009-2013 ............................... 219

16.1.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2009-2013 221

16.2 Well Statistics.................................................................................................................... 227

16.2.1 Producible Oil and Gas Well, 2009-2013 ...................................................................... 227

16.2.2 Producible Oil and Gas Well, By Country/Region, 2009-2013 ....................................... 229

16.2.3 Exploration and Development Wells Drilled, 2009-2013................................................ 239

16.2.4 Exploration and Development Wells Drilled, By Country/Region, 2009-2013 ................ 241

17 Appendix ............................................................................................................................... 245

17.1 Abbreviations .................................................................................................................... 245

17.2 Sources............................................................................................................................. 248




Table of Contents

17.3 Research Methodology ..................................................................................................... 249

17.3.1 Coverage ...................................................................................................................... 249

17.3.2 Secondary Research .................................................................................................... 249

17.3.3 Primary Research ......................................................................................................... 250

17.4 Disclaimer ......................................................................................................................... 251

1.1 List of Tables

Table 1: Exxon Mobil Corporation, Financial and Operational Overview, 2010–2013 ...................................... 24

Table 2: Exxon Mobil Corporation and Peers, Major Upcoming Projects by Country, Post-2017 ..................... 28

Table 3: Exxon Mobil Corporation and Peers, Proved Developed Reserves (mmboe), 2009–2013 ................. 32

Table 4: Exxon Mobil Corporation and Peers, Proved Reserves (mmboe), 2009–2013 .................................. 40

Table 5: Exxon Mobil Corporation, Total Production, Organic Reserve Additions (mmboe) and Reserve Replacement Ratio (%), 2009–2013 ............................................................................................ 42

Table 6: Exxon Mobil Corporation and Peers, Exploration Drilling, Success Ratio (%), 2009–2013................. 49

Table 7: Exxon Mobil Corporation, Production Growth by Region (%), 2013 ................................................... 50

Table 8: Exxon Mobil Corporation and Peers, Total Net Acreage (million), 2013............................................. 58

Table 9: Exxon Mobil Corporation, Major Net Acreage Additions, 2013 .......................................................... 60

Table 10: Exxon Mobil Corporation, Net Wells (Oil and Gas Productive and Dry Development), 2009–2013 .. 65

Table 11: Exxon Mobil Corporation, Oil and Gas Productive and Dry Exploratory, Net Wells, 2009–2013 ....... 66

Table 12: Exxon Mobil Corporation, US Highlights, 2010–2013 ...................................................................... 70

Table 13: Exxon Mobil Corporation, Canada/South America Highlights, 2010–2013 ....................................... 76

Table 14: Exxon Mobil Corporation, Europe Highlights, 2010–2013 ............................................................... 79

Table 15: Exxon Mobil Corporation, Africa, 2010–2013 .................................................................................. 84

Table 16: Exxon Mobil Corporation, Asia Highlights, 2010–2013 .................................................................... 91




Table of Contents

Table 17: Exxon Mobil Corporation, Australia/Oceania Highlights, 2010–2013 ............................................... 95

Table 18: Exxon Mobil Corporation, Capex by Segment (US$ bil), 2009–2013 ............................................... 99

Table 19: Exxon Mobil Corporation, Costs Incurred (US$ bil), 2009–2013 .................................................... 102

Table 20: Exxon Mobil Corporation, Reserve Replacement Ratio (%) and Finding and Development Costs (US$/boe), 2009–2013 .............................................................................................................. 104

Table 21: Exxon Mobil Corporation, Total Oil and Gas Production, 2011–2018 ............................................ 106

Table 22: Exxon Mobil Corporation, Production by Source, 2013 ................................................................. 107

Table 23: Exxon Mobil Corporation, Production (mmboe), US, 2009–2013 ................................................... 108

Table 24: Exxon Mobil Corporation, Average Net Production, US, 2013 ....................................................... 108

Table 25: Exxon Mobil Corporation, Upcoming Projects, Peak Production Capacity, US, 2014–2017 and Beyond ..................................................................................................................................... 109

Table 26: Exxon Mobil Corporation, Canada and South America, Production (mmboe), 2009–2012 ............. 110

Table 27: Exxon Mobil Corporation, Average Net Production by Project, Canada, 2013 ............................... 110

Table 28: Exxon Mobil Corporation, Canada, Upcoming Projects, Peak Production Capacity, 2014–2017 and Post-2017 .......................................................................................................................... 111

Table 29: Exxon Mobil Corporation, Europe, Production (mmboe), 2009–2013 ............................................ 112

Table 30: Exxon Mobil Corporation, Africa, Production (mmboe), 2009–2013 ............................................... 113

Table 31: Exxon Mobil Corporation, Africa, Upcoming Projects, Peak Production Capacity, 2014–2017 and Post-2017 ................................................................................................................................. 113

Table 32: Exxon Mobil Corporation, Production, Asia (mmboe), 2009–2013 ................................................. 115

Table 33: Exxon Mobil Corporation, Upcoming Projects, Peak Production Capacity, Asia, 2014–2017 and Post-2017 ................................................................................................................................. 116

Table 34: Exxon Mobil Corporation, Production, Australia (mmboe), 2009–2013 .......................................... 118

Table 35: Exxon Mobil Corporation, Upcoming Projects, Peak Production Capacity, Australia/Oceania, 2014–2017 and Post-2017 ........................................................................................................ 119

Table 36: Exxon Mobil Corporation, Historical and Forecast Production, 2011–2018 .................................... 120




Table of Contents

Table 37: GlobalData, Price Forecasts, 2014–2018 ..................................................................................... 120

Table 38: Exxon Mobil Corporation, Income Statement (US$ mil), 2011–2018 ............................................. 121

Table 39: Exxon Mobil Corporation, Balance Sheet (US$ mil), 2011–2018 ................................................... 122

Table 40: Exxon Mobil Corporation, Cash Flow Statement (US$ mil), 2011–2018 ........................................ 123

Table 41: ExxonMobil, Net Asset Value, 2013 .............................................................................................. 126

Table 42: Exxon Mobil Corporation and Peers, Operational and Financial Performance, 2013 ..................... 129

Table 43: Exxon Mobil Corporation and Peers, Total Reserves and Production (mmboe), 2013 ................... 134

Table 44: Exxon Mobil Corporation and Peers, Financial and Operational Ratios, 2013 ............................... 136

Table 45: Exxon Mobil Corporation, Total Crude Oil and Natural Gas, Production and Reserves, mmboe, 2009-2013 ................................................................................................................................ 140

Table 46: Exxon Mobil Corporation, Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, mmboe, 2009-2013 ......................................................................................... 143

Table 47: Exxon Mobil Corporation, Total Crude Oil and Natural Gas Reserve Changes, mmboe, 2009-2013 ......................................................................................................................................... 145

Table 48: Exxon Mobil Corporation, Crude Oil Production and Reserves Metrics, mmbbl, 2009-2013........... 147

Table 49: Exxon Mobil Corporation, Crude Oil Production and Reserves, By Country/Region, mmbbl, 2009-2013 ......................................................................................................................................... 150

Table 50: Exxon Mobil Corporation, Crude Oil Reserve Changes, mmbbl, 2009-2013 ................................. 152

Table 51: Exxon Mobil Corporation, Natural Gas Production and Reserves Metrics, bcf, 2009-2013 ............ 154

Table 52: Exxon Mobil Corporation, Natural Gas Production and Reserves, By Country/Region, bcf, 2009-2013 ......................................................................................................................................... 157

Table 53: Exxon Mobil Corporation, Natural Gas Reserve Changes, bcf, 2009-2013 .................................... 159

Table 54: Exxon Mobil Corporation, Oil and Gas Reserves Life Index, Years, 2009-2013 ............................. 161

Table 55: Exxon Mobil Corporation, Oil and Gas Reserves Life Index, By Country/Region, Years, 2009-2013 ......................................................................................................................................... 164

Table 56: Exxon Mobil Corporation, Upstream Capital Expenditure, US$ mil, 2009-2013 ............................. 166




Table of Contents

Table 57: Exxon Mobil Corporation, Proved and Unproved Acquisition Costs, By Country/Region, US$ mil, 2009-2013 ................................................................................................................................ 169

Table 58: Exxon Mobil Corporation, Exploration and Development Costs, By Country/Region, US$ mil, 2009-2013 ................................................................................................................................ 172

Table 59: Exxon Mobil Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, 2009-2013 .................................................... 174

Table 60: Exxon Mobil Corporation, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, By Country/Region, 2009-2013..................... 178

Table 61: Exxon Mobil Corporation, Oil and Gas Production Replacement Ratio, %, 2009-2013 .................. 181

Table 62: Exxon Mobil Corporation, 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 2009-2013 ................................................................................................. 189

Table 63: Exxon Mobil Corporation, Revenue and Expenses, US$ mil, 2009-2013 ....................................... 193

Table 64: Exxon Mobil Corporation, Revenue and Expenses, By Country/Region, US$ mil, 2009-2013 ........ 202

Table 65: Exxon Mobil Corporation, Oil and Gas Revenue and Expenses, US$/boe, 2009-2013 .................. 206

Table 66: Exxon Mobil Corporation, Oil and Gas Revenue and Expenses, US$/boe, By Country/Region, 2009-2013 ................................................................................................................................ 214

Table 67: Exxon Mobil Corporation, Oil and Gas Performance Metrics, 2009-2013 ...................................... 217

Table 68: Exxon Mobil Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2009-2013 ......................................................................................................................................... 219

Table 69: Exxon Mobil Corporation, Land Holdings (Developed and Undeveloped Acreage), By Country/Region, Acres, 2009-2013 ............................................................................................ 224

Table 70: Exxon Mobil Corporation, Producible Oil and Gas Wells, 2009-2013 ............................................ 227

Table 71: Exxon Mobil Corporation, Producible Oil and Gas Wells, By Country/Region, 2009-2013 ............. 235

Table 72: Exxon Mobil Corporation, Exploratory and Developed Wells, 2009-2013 ...................................... 239

Table 73: Exxon Mobil Corporation, Exploratory and Developed Wells, By Country/Region, 2009-2013 ....... 241

1.2 List of Figures

Figure 1: Exxon Mobil Corporation, Operational Map, 2013............................................................................ 23




Table of Contents

Figure 2: Exxon Mobil Corporation, Financial and Operational Overview, 2010–2013 ..................................... 24

Figure 3: Exxon Mobil Corporation, Share Price (US$) and Volume (million), October 2013– September 2014 ........................................................................................................................................... 25

Figure 4: Exxon Mobil Corporation, Major Projects, Production Volumes by Start-up Year (mmboed), 2013–2017 ........................................................................................................................................... 27

Figure 5: Exxon Mobil Corporation, Production Mix (%), 2011–2018 .............................................................. 30

Figure 6: Exxon Mobil Corporation, Production by Product Type (mmboed), 2013–2017 ................................ 31

Figure 7: Exxon Mobil Corporation and Peers, Proved Developed Reserves (mmboe), 2009–2013 ................ 32

Figure 8: Exxon Mobil Corporation, Deepwater Projects, 2013 ....................................................................... 34

Figure 9: Exxon Mobil Corporation and Peers, Profitability Ratios, 2009–2013 ............................................... 35

Figure 10: Exxon Mobil Corporation, Profitability Ratios, 2009–2013 .............................................................. 37

Figure 11: Exxon Mobil Corporation, Debt-to-Equity Ratio (X), 2009–2013 ..................................................... 38

Figure 12: Exxon Mobil Corporation and Peers, Total Proved Reserves (mmboe), 2009–2013 ....................... 40

Figure 13: Exxon Mobil Corporation, Total Production, Organic Reserve Additions (mmboe) and Reserve Replacement Ratio (%), 2009–2013 ............................................................................................ 42

Figure 14: Exxon Mobil Corporation, Resource Base and Prove Reserves by Resource Type (%), 2013 ........ 43

Figure 15: Exxon Mobil Corporation, Developing Reserves (billion boe) by Region, 2013 ............................... 44

Figure 16: Exxon Mobil Corporation, Resource Base and Proved Reserves, by Region, 2013 ........................ 45

Figure 17: Exxon Mobil Corporation, Capex-to-CFO Ratio (X), 2009–2013 .................................................... 46

Figure 18: Exxon Mobil Corporation and Peers, Exploration Drilling, Success Ratio (%), 2009–2013 ............. 48

Figure 19: Exxon Mobil Corporation, Production Growth (%), 2010–2013 ....................................................... 50

Figure 20: Exxon Mobil Corporation, Resource Base (billion boe), 2013 ......................................................... 52

Figure 21: Exxon Mobil Corporation, Developed and Undeveloped Proved Reserves, 2009–2013 ................. 53

Figure 22: Exxon Mobil Corporation, Potential Opportunities, 2013 ................................................................ 54

Figure 23: Exxon Mobil Corporation and Peers, Total Net Acreage (million), 2013 ......................................... 57




Table of Contents

Figure 24: Exxon Mobil Corporation and Peers, Net Acreage (million), 2010–2013 ........................................ 59

Figure 25: Exxon Mobil Corporation, Net Acreage (million), 2010–2013 ......................................................... 60

Figure 26: Exxon Mobil Corporation, Exploratory and Development, Net Wells, 2009–2013 ........................... 63

Figure 27: Exxon Mobil Corporation, Net Wells (Productive and Dry Exploratory and Development), 2009–2013 ........................................................................................................................................... 64

Figure 28: Exxon Mobil Corporation, Net Wells (Oil and Gas Productive and Dry Development), 2009–2013 . 65

Figure 29: Exxon Mobil Corporation, Oil and Gas Productive and Dry Exploratory, Net Wells, 2009–2013 ...... 66

Figure 30: Exxon Mobil Corporation, Exploration Drilling, Success Ratio (%), 2009–2013 .............................. 67

Figure 31: Exxon Mobil Corporation, Operational Map, 2013 .......................................................................... 68

Figure 32: Exxon Mobil Corporation, US Onshore Operational Overview Map, 2013 ...................................... 70

Figure 33: Exxon Mobil Corporation, GoM, Operational Overview Map, 2013 ................................................. 72

Figure 34: Exxon Mobil Corporation, Europe, Operational Overview Map, 2013 ............................................. 78

Figure 35: Exxon Mobil Corporation, Romania, Operational Overview Map, 2013 .......................................... 82

Figure 36: Exxon Mobil Corporation, Africa, Operational Overview, 2013 ....................................................... 85

Figure 37: Exxon Mobil Corporation, Angola, Operational Overview, 2013 ..................................................... 86

Figure 38: Exxon Mobil Corporation, Nigeria, Operational Overview, 2013 ..................................................... 88

Figure 39: Exxon Mobil Corporation, Tanzania, Operational Overview, 2013 .................................................. 90

Figure 40: Exxon Mobil Corporation, Asia, Operational Overview, 2013 ......................................................... 92

Figure 41: Exxon Mobil Corporation, Australia/Oceania, Operational Overview Map, 2013 ............................. 96

Figure 42: Exxon Mobil Corporation, Capex (US$ bil), 2009–2013 ................................................................. 98

Figure 43: Exxon Mobil Corporation, Capex (US$ bil), 2009–2013 ................................................................. 99

Figure 44: Exxon Mobil Corporation, Costs Incurred (US$ bil), 2009–2013 ................................................... 101

Figure 45: Exxon Mobil Corporation, Costs Incurred (US$ bil), 2011–2013 ................................................... 103




Table of Contents

Figure 46: Exxon Mobil Corporation, Reserve Replacement Ratio (%) and Finding and Development Costs Incurred (US$/boe), 2010–2013 ................................................................................................ 104

Figure 47: Exxon Mobil Corporation, Total Oil and Gas Production (mmboe), 2011–2018 ............................ 106

Figure 48: Exxon Mobil Corporation, Production by Source (%), 2013 .......................................................... 107

Figure 49: Exxon Mobil Corporation and Peers, Relative Share Price Performance Index (%), October 2013– September 2014 ............................................................................................................. 128

Figure 50: Exxon Mobil Corporation, Financial Parameters, 2010–2013 ....................................................... 130

Figure 51: Exxon Mobil Corporation and Peers, Financial Parameters (US$/boe), 2013 ............................... 131

Figure 52: Exxon Mobil Corporation and Peers, F&D Cost and Reserve Replacement Comparison, 2013 .... 132

Figure 53: Exxon Mobil Corporation and Peers, Total Reserves and Production (mmboe), 2013 .................. 133

Figure 54: Exxon Mobil Corporation and Peers, Reserve Life Index (Years), 2013 ....................................... 135

Figure 55: Exxon Mobil Corporation and Peers, Valuation Ratios, 2013 ....................................................... 138

Figure 56: Exxon Mobil Corporation, Total Crude Oil and Natural Gas, Production and Reserves, mmboe, 2009-2013 ................................................................................................................................ 140

Figure 57: Exxon Mobil Corporation, Total Oil & Gas Reserves, End of Period, By Country/Region, mmboe, 2009-2013 ................................................................................................................................ 142

Figure 58: Exxon Mobil Corporation, Total Oil & Gas Production, By Country/Region, mmboe, 2009-2013 ... 143

Figure 59: Exxon Mobil Corporation, Total Crude Oil and Natural Gas Reserve Changes, mmboe, 2013 ..... 145

Figure 60: Exxon Mobil Corporation, Crude Oil Production and Reserves Metrics, mmbbl, 2009-2013 ......... 147

Figure 61: Exxon Mobil Corporation, Oil Reserves, End of Period, By Country/Region, mmbbl, 2009-2013 .. 149

Figure 62: Exxon Mobil Corporation, Oil Production, By Country/Region, mmbbl, 2009-2013 ....................... 150

Figure 63: Exxon Mobil Corporation, Crude Oil Reserve Changes, mmbbl, 2013 ......................................... 152

Figure 64: Exxon Mobil Corporation, Natural Gas Production and Reserves Metrics, bcf, 2009-2013 ........... 154

Figure 65: Exxon Mobil Corporation, Gas Reserves, End of Period, By Country/Region, bcf, 2009-2013 ...... 156

Figure 66: Exxon Mobil Corporation, Gas Production, By Country/Region, bcf, 2009-2013 ........................... 157




Table of Contents

Figure 67: Exxon Mobil Corporation, Natural Gas Reserve Changes, bcf, 2013............................................ 159

Figure 68: Exxon Mobil Corporation, Oil and Gas Reserves Life Index, Years, 2009-2013............................ 161

Figure 69: Exxon Mobil Corporation, Gas Reserve Life Index, By Country/Region, Years, 2009-2013 .......... 162

Figure 70: Exxon Mobil Corporation, Oil & Gas Reserve Life Index, By Country/Region, Years, 2009-2013 .. 163

Figure 71: Exxon Mobil Corporation, Oil Reserve Life Index, By Country/Region, Years, 2009-2013 ............ 164

Figure 72: Exxon Mobil Corporation, Upstream Capital Expenditure, US$ mil, 2009-2013 ............................ 166

Figure 73: Exxon Mobil Corporation, Proved Acquisition Costs, By Country/Region, US$ mil, 2009-2013 ..... 168

Figure 74: Exxon Mobil Corporation, Unproved Acquisition Costs, By Country/Region, US$ mil, 2009-2013 . 169

Figure 75: Exxon Mobil Corporation, Development Costs, By Country/Region, US$ mil, 2009-2013 ............. 171

Figure 76: Exxon Mobil Corporation, Exploration Costs, By Country/Region, US$ mil, 2009-2013 ................ 172

Figure 77: Exxon Mobil Corporation, 3-Year Wt.Avg., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, US$/boe, 2009-2013 .................... 174

Figure 78: Exxon Mobil Corporation, Oil & Gas Finding & Development Cost/boe, 3-Year Average, By Country/Region, US$/boe, 2009-2013 ....................................................................................... 176

Figure 79: Exxon Mobil Corporation, Oil & Gas Finding Cost per boe, 3-Year Average, By Country/Region, US$/boe, 2009-2013 ................................................................................................................. 177

Figure 80: Exxon Mobil Corporation, Reserve Replacement Cost per boe, 3-Year Average, By Country/Region, US$/boe, 2009-2013 ....................................................................................... 178

Figure 81: Exxon Mobil Corporation, 3-Year Wt.Avg., Oil and Gas Production Replacement Ratio, %, 2009-2013 ......................................................................................................................................... 181

Figure 82: Exxon Mobil Corporation, 3-Year Wt. Avg. Gas F&D Production Replacement, By Country/Region, %, 2009-2013 ................................................................................................. 184

Figure 83: Exxon Mobil Corporation, 3-Year Wt. Avg. Gas RRC Production Replacement, By Country/Region, %, 2009-2013 ................................................................................................. 185

Figure 84: Exxon Mobil Corporation, 3-Year Wt. Avg. Oil & Gas F&D Production Replacement, By Country/Region, %, 2009-2013 ................................................................................................. 186

Figure 85: Exxon Mobil Corporation, 3-Year Wt. Avg. Oil & Gas RRC Production Replacement, By Country/Region, %, 2009-2013 ................................................................................................. 187




Table of Contents

Figure 86: Exxon Mobil Corporation, 3-Year Wt. Avg. Oil F&D Production Replacement, By Country/Region, %, 2009-2013 ........................................................................................................................... 188

Figure 87: Exxon Mobil Corporation, 3-Year Wt. Avg. Oil RRC Production Replacement, By Country/Region, %, 2009-2013 ................................................................................................. 189

Figure 88: Exxon Mobil Corporation, Revenue and Expenses, US$ mil, 2009-2013 ..................................... 193

Figure 89: Exxon Mobil Corporation, Depreciation, Depletion and Amortization From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 ................................................................ 195

Figure 90: Exxon Mobil Corporation, Exploration Expenses, By Country/Region, US$ mil, 2009-2013 .......... 196

Figure 91: Exxon Mobil Corporation, Income Tax Provision (Benefit) From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 ................................................................................... 197

Figure 92: Exxon Mobil Corporation, Net Income/ Loss From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 ........................................................................................ 198

Figure 93: Exxon Mobil Corporation, Oil & Gas Revenue, By Country/Region, US$ mil, 2009-2013 .............. 199

Figure 94: Exxon Mobil Corporation, Profit (loss) Before Taxation From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 ........................................................................................ 200

Figure 95: Exxon Mobil Corporation, Production Costs, By Country/Region, US$ mil, 2009-2013 ................. 201

Figure 96: Exxon Mobil Corporation, Total Expenses From Upstream Oil & Gas Operations, By Country/Region, US$ mil, 2009-2013 ........................................................................................ 202

Figure 97: Exxon Mobil Corporation, Oil and Gas Revenue and Expenses, US$/boe, 2009-2013 ................. 206

Figure 98: Exxon Mobil Corporation, Exploration Expenses per boe, By Country/Region, US$/boe, 2009-2013 ......................................................................................................................................... 208

Figure 99: Exxon Mobil Corporation, Income Tax/(Benefit) per boe, By Country/Region, US$/boe, 2009-2013 ......................................................................................................................................... 209

Figure 100: Exxon Mobil Corporation, Lifting Cost per boe, By Country/Region, US$/boe, 2009-2013 .......... 210

Figure 101: Exxon Mobil Corporation, Annual Net Income per boe, By Country/Region, US$/boe, 2009-2013 ......................................................................................................................................... 211

Figure 102: Exxon Mobil Corporation, Oil & Gas Revenue per boe, By Country/Region, US$/boe, 2009-2013 ......................................................................................................................................... 212




Table of Contents

Figure 103: Exxon Mobil Corporation, Total DD&A per boe, By Country/Region, US$/boe, 2009-2013 ......... 213

Figure 104: Exxon Mobil Corporation, Total Revenue per boe, By Country/Region, US$/boe, 2009-2013 ..... 214

Figure 105: Exxon Mobil Corporation, Oil and Gas Performance Metrics, 2009-2013 ................................... 217

Figure 106: Exxon Mobil Corporation, Land Holdings (Developed and Undeveloped Acreage), Acres, 2009-2013 ......................................................................................................................................... 219

Figure 107: Exxon Mobil Corporation, Total Gross Undeveloped Acreage, By Country/Region, Acres, 2009-2013 ......................................................................................................................................... 221

Figure 108: Exxon Mobil Corporation, Total Net Undeveloped Acreage, By Country/Region, Acres, 2009-2013 ......................................................................................................................................... 222

Figure 109: Exxon Mobil Corporation, Total Gross Developed Acreage, By Country/Region, Acres, 2009-2013 ......................................................................................................................................... 223

Figure 110: Exxon Mobil Corporation, Total Net Developed Acreage, By Country/Region, Acres, 2009-2013224

Figure 111: Exxon Mobil Corporation, Producible Oil and Gas Wells, 2009-2013 ......................................... 227

Figure 112: Exxon Mobil Corporation, Gross Productive Gas Wells, By Country/Region, Number, 2009-2013 ......................................................................................................................................... 229

Figure 113: Exxon Mobil Corporation, Gross Productive Oil & Gas Wells, By Country/Region, Number, 2009-2013 ................................................................................................................................ 230

Figure 114: Exxon Mobil Corporation, Gross Productive Oil Wells, By Country/Region, Number, 2009-2013 231

Figure 115: Exxon Mobil Corporation, Net/Gross Oil & Gas Ratio, By Country/Region, %, 2009-2013 .......... 232

Figure 116: Exxon Mobil Corporation, Net Productive Gas Wells, By Country/Region, Number, 2009-2013 .. 233

Figure 117: Exxon Mobil Corporation, Net Productive Oil & Gas Wells, By Country/Region, Number, 2009-2013 ......................................................................................................................................... 234

Figure 118: Exxon Mobil Corporation, Net Productive Oil Wells, By Country/Region, Number, 2009-2013 .... 235

Figure 119: Exxon Mobil Corporation, Exploratory and Developed Wells, 2009-2013 ................................... 239




Exxon Mobil Corporation, Company Overview

2 Exxon Mobil Corporation, Company Overview Exxon Mobil Corporation (ExxonMobil) is an integrated oil and gas company involved in the exploration, production, refining and transportation of crude oil and natural gas, and the manufacture of petroleum products. The company operates in several countries across the globe under a number of brand names, including ExxonMobil, Exxon, Esso and Mobil. The company’s operations are located primarily in the US, Canada, South America, Europe, Africa, Asia, Australia/Oceania, the Middle East, and Russia/the Caspian region.

The company’s business activities are divided into three segments: upstream, downstream, and chemicals. The upstream segment is engaged in the exploration, development, production, and marketing of crude oil, Natural Gas Liquids (NGL) and natural gas globally. ExxonMobil has Exploration and Production (E&P) acreage in XX countries and production operations in XX countries. Its downstream segment involves the refining and marketing of a wide range of petroleum products including crude oil, natural gas, fuels and lubricants in more than XX countries. The company is present in XX countries and holds interest in XX refineries. ExxonMobil’s chemical business involves the manufacture and marketing of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics in XX countries. It also holds interests in electric power generation facilities.

The following figure provides an overview of the company’s operations at the end of 2013.




Exxon Mobil Corporation, Company Overview

Figure 1: Exxon Mobil Corporation, Operational Map, 2013

Source: ExxonMobil, 2014

ExxonMobil has maintained a focus on the expansion of its production and reserve base. The following figure illustrates its performance in terms of revenue, Cash Flow from Operations (CFO), net income, capital expenditure (capex), reserves and production between 2010 and 2013.




Exxon Mobil Corporation, Key Highlights

3 Exxon Mobil Corporation, Key Highlights 3.1 Stream of Major Upcoming, Value-Creating Projects to Lead Production Growth

ExxonMobil has a strong and geographically diverse portfolio of upcoming projects. The company has expanded its E&P activities geographically and gained access to groundbreaking technical capabilities through several acquisitions and partnerships. It has also been actively developing different assets in a number of countries such as the US, Canada, South America, Europe, Africa, Asia and Australia in order to drive its long-term production growth. Although it has been continuously attempting to increase its overall production volumes, overall production declined at a negative Compound Annual Growth Rate (CAGR) of XX% between 2010 and 2013 and a negative Year-on-Year (YoY) rate of XX% from 2012 to 2013. This decline was due primarily to natural decline and asset divestment.

ExxonMobil intends to increase its production rate to XX million barrels of oil equivalent per day (mmboed) in 2017, from XX mmboed in 2013. The company has a geographically diverse portfolio of upcoming projects and is currently focusing on the development of world-class projects and the creation of value through active portfolio management. Its strong upcoming project portfolio and increased focus on upstream operations is expected to result in consistent new production additions, which will offset the decline of production from its legacy assets.

The following figure illustrates ExxonMobil’s major upcoming projects and production volumes (mmboed) according to production start-up year for the period from 2013 to 2017.




Exxon Mobil Corporation, Goals and Strategies

4 Exxon Mobil Corporation, SWOT Analysis 4.1 Strengths 4.1.1 Steady Reserve Growth and Relatively Large Reserve Base

ExxonMobil is one of the leading oil and gas resource holders in the world. The company has always maintained the highest reserve base of its peer group, surpassing global integrated companies such as Chevron, BP, Total, Royal Dutch Shell and ConocoPhillips. The company topped the total proved reserves table between 2009 and 2013, with an average proved reserves total of XX billion boe, compared with a peer average of XX billion boe. The company possessed proved reserves totaling XX billion boe at the end of 2013.

The following figure compares the total proved reserves possessed by ExxonMobil and its peers for the 2009–2013 period.





Figure 12: Exxon Mobil Corporation and Peers, Total Proved Reserves (mmboe), 2009–2013


Table 4: Exxon Mobil Corporation and Peers, Proved Reserves (mmboe), 2009–2013

Company name 2009 2010 2011 2012 2013

ExxonMobil XX XX XX XX XX

BP XX XX XX XX XX

Royal Dutch Shell XX XX XX XX XX

Chevron XX XX XX XX XX

ConocoPhillips XX XX XX XX XX

Total XX XX XX XX XX






4.2 Weaknesses 4.2.1 Exploration Drilling Success Ratio

ExxonMobil’s exploration drilling success ratio followed a declining trend from XX% in 2010 to XX% in 2011 and XX% in 2012, the same as the success rate reported for 2013. The company underperformed in terms of exploration drilling success ratio compared with its peer average of XX% during this period. Moreover, ExxonMobil was one of the weakest performers in terms of this ratio between 2009 and 2013, with the exception of 2010 when the company’s exploration drilling success ratio amounted to around 84% compared with the peer group average of XX%. Relatively low exploration drilling success ratios indicate the comparatively low efficacy of its exploration drilling activities.

The following figure provides a comparison of ExxonMobil’s exploration drilling performance with its peer group average between 2009 and 2013.

Figure 18: Exxon Mobil Corporation and Peers, Exploration Drilling, Success Ratio (%), 2009–2013





Exxon Mobil Corporation, Forecast Production and

9 Exxon Mobil Corporation, Forecast Production and Financial Statements

ExxonMobil’s production and financial projections have been made using information that is publicly available. GlobalData has used a forecast period of five years for its analysis. The following table shows Exxon Mobil’s historical and estimated production between 2011 and 2018.

Table 36: Exxon Mobil Corporation, Historical and Forecast Production, 2011–2018

Production spilt Actual Projected annual forecast

2011 2012 2013 2014 2015 2016 2017 2018

Crude oil and NGL production (mmboe) XX XX XX XX XX XX XX XX

Natural gas production (bcf) XX XX XX XX XX XX XX XX

Overall geographical production (mmboe) XX XX XX XX XX XX XX XX

Source: GlobalData; ExxonMobil, 2013a: ExxonMobil, 2013b

GlobalData’s price deck is divided into strong, base and weak cases for forecasting a company’s performance. The company has applied company-specific differentials to its projected crude oil and natural gas prices. The following table provides an overview of GlobalData’s price deck between 2014 and 2018.

Table 37: GlobalData, Price Forecasts, 2014–2018

Crude oil price (US$ per bbl) 2014 2015 2016 2017 2018

Strong case XX XX XX XX XX

Base case XX XX XX XX XX

Weak case XX XX XX XX XX

Natural gas price (US$ per mcf)

2014 2015 2016 2017 2018

Strong case XX XX XX XX XX

Base case XX XX XX XX XX

Weak case XX XX XX XX XX

Source: GlobalData Note: GlobalData has considered base case prices for crude oil and natural gas NYMEX prices are considered for crude oil and Henry Hub prices for natural gas





9.1 Income Statement, 2011–2018

Table 38: Exxon Mobil Corporation, Income Statement (US$ mil), 2011–2018

2011 2012 2013 2014 2015 2016 2017 2018

E&P revenue XX XX XX XX XX XX XX XX

Downstream XX XX XX XX XX XX XX XX

Chemicals XX XX XX XX XX XX XX XX

Inter segmetn eliminations XX XX XX XX XX XX XX XX

Other revenue, net XX XX XX XX XX XX XX XX

Total revenue XX XX XX XX XX XX XX XX

Production costs XX XX XX XX XX XX XX XX

Downstream & Chemicals XX XX XX XX XX XX XX XX

G&A expense XX XX XX XX XX XX XX XX

EBITDAX XX XX XX XX XX XX XX XX

Other operating expenses XX XX XX XX XX XX XX XX

Exploration expense/Dry dole XX XX XX XX XX XX XX XX

EBITDA XX XX XX XX XX XX XX XX

DD&A expenses XX XX XX XX XX XX XX XX

Operating income (EBIT) XX XX XX XX XX XX XX XX

Net interest expenses XX XX XX XX XX XX XX XX

Other non operating expenses XX XX XX XX XX XX XX XX

Equity in income of affiliates XX XX XX XX XX XX XX XX

EBT XX XX XX XX XX XX XX XX

Total income tax XX XX XX XX XX XX XX XX

Profit after tax XX XX XX XX XX XX XX XX

Minority interest XX XX XX XX XX XX XX XX

Net income to common shareholders XX XX XX XX XX XX XX XX

Basic shares outstanding XX XX XX XX XX XX XX XX

Diluted shares XX XX XX XX XX XX XX XX





outstanding

Basic EPS XX XX XX XX XX XX XX XX

Dilutive EPS XX XX XX XX XX XX XX XX

Source: GlobalData; ExxonMobil, 2011; ExxonMobil, 2012; ExxonMobil, 2013a DD&A: Depreciation, Depletion and Amortization; EBITDAX: Earnings Before Interest, Tax, Depreciation, Amortization and Exploration Expenses, EBT: Earnings Before Tax; EPS: Earnings Per Share; G&A: General and Administrative

9.2 Balance Sheet, 2011–2018

Table 39: Exxon Mobil Corporation, Balance Sheet (US$ mil), 2011–2018

2011 2012 2013 2014 2015 2016 2017 2018

Cash and cash equivalents XX XX XX XX XX XX XX XX

Restricted cash XX XX XX XX XX XX XX XX

Accounts receivable XX XX XX XX XX XX XX XX

Inventories XX XX XX XX XX XX XX XX

Other current assets XX XX XX XX XX XX XX XX

Total current assets XX XX XX XX XX XX XX XX

Long-term receivables XX XX XX XX XX XX XX XX

Investments in unconsolidated entities XX XX XX XX XX XX XX XX

Prop. plant and equipment, net XX XX XX XX XX XX XX XX

Other non-current assets XX XX XX XX XX XX XX XX

Total assets XX XX XX XX XX XX XX XX

Accounts payable XX XX XX XX XX XX XX XX

Accrued expenses XX XX XX XX XX XX XX XX

Domestic and foreign income taxes XX XX XX XX XX XX XX XX

Other current liabilities (non-debt) XX XX XX XX XX XX XX XX

Current portion of long-term debt XX XX XX XX XX XX XX XX

Short-term debt XX XX XX XX XX XX XX XX

Total current liabilities XX XX XX XX XX XX XX XX

Long-term debt XX XX XX XX XX XX XX XX





Deferred income tax XX XX XX XX XX XX XX XX

Other long-term liabilities XX XX XX XX XX XX XX XX

Total liabilities XX XX XX XX XX XX XX XX

Common stock XX XX XX XX XX XX XX XX

Treasury stock XX XX XX XX XX XX XX XX

Retained earnings (deficit) XX XX XX XX XX XX XX XX

Accumulated loss/other XX XX XX XX XX XX XX XX

Total shareholder equity XX XX XX XX XX XX XX XX

Non-controlling interest XX XX XX XX XX XX XX XX

Total equity XX XX XX XX XX XX XX XX

Total liabilities plus shareholders' equity XX XX XX XX XX XX XX XX

Source: GlobalData; ExxonMobil, 2011; ExxonMobil, 2012; ExxonMobil, 2013a

9.3 Cash Flow Statement, 2011–2018

Table 40: Exxon Mobil Corporation, Cash Flow Statement (US$ mil), 2011–2018

2011 2012 2013 2014 2015 2016 2017 2018

Net income XX XX XX XX XX XX XX XX

DD&A XX XX XX XX XX XX XX XX

Deferred taxes XX XX XX XX XX XX XX XX

Dry hole and impairment expense XX XX XX XX XX XX XX XX

Income from equity investments XX XX XX XX XX XX XX XX

Minority interest XX XX XX XX XX XX XX XX

Dividends received from affiliates XX XX XX XX XX XX XX XX

Change in working capital XX XX XX XX XX XX XX XX

Operating cash flows XX XX XX XX XX XX XX XX

Capex – additions to PP&E XX XX XX XX XX XX XX XX

Proceeds from sale or disposal of assets XX XX XX XX XX XX XX XX





Other XX XX XX XX XX XX XX XX

Investing cash flows XX XX XX XX XX XX XX XX

Additions to (reductions in) long-term debt XX XX XX XX XX XX XX XX

Additions to (reductions in) short-term debt XX XX XX XX XX XX XX XX

Common and preferred dividends XX XX XX XX XX XX XX XX

Purchase of treasury shares XX XX XX XX XX XX XX XX

Dividends to minority interests XX XX XX XX XX XX XX XX

Other XX XX XX XX XX XX XX XX

Financing cash flows XX XX XX XX XX XX XX XX

Total increase/decrease of cash XX XX XX XX XX XX XX XX

Source: GlobalData; ExxonMobil, 2011; ExxonMobil, 2012; ExxonMobil, 2013a PP&E: Property, Plant and Equipment




Exxon Mobil Corporation, Valuation

10 Exxon Mobil Corporation, Valuation 10.1 Net Asset Value Methodology

ExxonMobil’s operations have been valued using the Net Asset Value (NAV) methodology. The company’s operations yielded an equity value of US$XX billion, and an EV of US$XX billion. GlobalData’s base case valuation is US$XX per share, implying that the stock is trading at a discount of XX%, based on the current share price of US$XX per share as of September 30, 2014.

GlobalData has valued ExxonMobil using the sum-of-parts valuation methodology. GlobalData has valued ExxonMobil’s proved reserve base using the Present Value discounted at

10% (PV10) method. GlobalData has valued the company’s undeveloped acreages by using the recent US$-per-acreage

multiples evaluated in its database (www.oilandgasetrack.com). GlobalData’s price deck is divided into strong, base and weak cases, to evaluate ExxonMobil’s

performance. GlobalData has taken the future development costs from the company’s standardized PV-10 values

from US Securities and Exchange Commission filings. GlobalData assumes that the development cost will be spent over the coming eight years.

The operating cost for independent E&P companies consists of the lifting costs and the related general and administrative expenses.

GlobalData assumes a nominal discount rate of about 10%.




Exxon Mobil Corporation, Valuation

The tables below provide a detailed calculation of ExxonMobil’s NAV.

Table 41: ExxonMobil, Net Asset Value, 2013

Total value (US$ mil) US$/share

Oil, condensate and natural gas reserves XX XX

Prospective acreage XX XX

Total E&P value XX XX

Downstream XX XX

Chemicals XX XX

Total enterprise value XX XX

Long-term debt XX XX

Net debt XX XX

Equity value XX XX

Source: GlobalData




Appendix

17 Appendix 17.1 Abbreviations

2D: Two dimensional

3D: Three dimensional

ACG: Azeri-Chirag-Gunashli

AKG: Al Khaleej Gas

bbl: barrels of oil

bcf: billion cubic feet

bcfd: billion cubic feet per day

bd: barrels of oil per day

bil: billion

boed: barrels of oil equivalent per day

CAGR: Compound Annual Growth Rate

capex: capital expenditure

CBM: Coal-Bed Methane

CFO: Cash Flow from Operations

CFZ: Controlled Freeze Zone

CLOV: Cravo-Lirio-Orquidea-Violeta

CO2: Carbon dioxide

DACF: Debt-Adjusted Cash Flow

DCF: Discounted Cash Flow

DD&A: Depreciation, Depletion and Amortization

E&P: Exploration and Production

EBIT: Earnings before Interest and Tax

EBITDA: Earnings before Interest, Tax, Depreciation and Amortization

EBITDAX: Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization and Exploration Expenses

EBT: Earnings Before Tax

EOR: Enhanced Oil Recovery




Appendix

EPS: Earnings per share

EV: Enterprise Value

EVD: Ebola Virus Disease

F&D: Finding and Development

FEED: Front-End Engineering and Design

FEL: Frontier Exploration License

FPSO: Floating production, storage and offloading unit

G&A: General and Administrative

GoM: Gulf of Mexico

ICSID: International Centre for Settlement of Investment Disputes

IPR: Initial Production Rate

JV: Joint Venture

km: kilometers

LNG: Liquefied natural gas

LPG: Liquefied Petroleum Gas

mbd: thousand barrels of oil per day

mboe: thousand barrels of oil equivalent

mboed: thousand barrels of oil equivalent per day

mcf: thousand cubic feet

mil: million

mmbbl: million barrels of oil

mmbd: million barrels of oil per day

mmboe: million barrels of oil equivalent

mmboed: million barrels of oil equivalent per day

mmcfd: million cubic feet per day

mmt: million metric tons

mmty: million metric tons per year

NAM: Nederlandse Aardolie Maatschappij

NGL: Natural Gas Liquid




Appendix

NYSE: New York Stock Exchange

OCS: Offshore Continental Shelf

OML: Oil mining lease

OPL: Oil prospecting license

PNG: Papua New Guinea

PP&E: Property Plant and Equipment

PSA: Production Sharing Agreement

PSC: Production Sharing Contracts

RHS: Right Hand Side

SAGD: Steam-Assisted Gravity Drainage

SEPA: Scottish Environment Protection Agency

SOEP: Sable Offshore Energy Project

SYU: Santa Ynez Unit

tcf: trillion cubic feet

UAE: United Arab Emirates

X: Multiple

YoY: Year-on-year




Appendix

17.2 Sources ExxonMobil (2010). Annual Report 2010. Exxon Mobil Corporation. Available from: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-reportsannual [Accessed on July 14, 2014]

ExxonMobil (2011). Annual Report 2011. Exxon Mobil Corporation. Available from: http://www.exxonmobil.com/Corporate/Files/news_pub_sar2011.pdf

ExxonMobil (2012). Annual Report 2012. Exxon Mobil Corporation. Available from: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-reportsannual [Accessed on July 14, 2014]

ExxonMobil (2013a). Annual Report. Exxon Mobil Corporation. Available from: http://nasdaqomx.mobular.net/nasdaqomx/7/3395/4843/ [Accessed on July 14, 2014]

ExxonMobil (2013b). Operational Overview. Exxon Mobil Corporation. Available from: http://cdn.exxonmobil.com/~/media/Reports/Financial%20Review/2013_ExxonMobil_Financial_and_Operating_Review.pdf

ExxonMobil (2013c). Annual Meeting Presentation. Exxon Mobil Corporation. Available from: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjM3NDM2fENoaWxkSUQ9LTF8VHlwZT0z&t=1 [Accessed on July 14, 2014]

ExxonMobil (2014). Company Website. Exxon Mobil Corporation. Available from: http://corporate.exxonmobil.com/

Google Finance (2013). Summary. Google Finance. Available from: http://www.google.com/finance?cid=663876 [Accessed on July 14, 2014]

Yahoo Finance (2013). Historical Prices. Yahoo Finance. Available from: https://in.finance.yahoo.com/q/hp?s=XOM&a=08&b=1&c=2013&d=07&e=31&f=2014&g=d [Accessed on September 2, 2014]




Appendix

17.3 Research Methodology GlobalData’s dedicated research and analysis teams consist of experienced professionals with advanced statistical expertise and marketing, market research and consulting backgrounds in the energy industry.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and Strategic and Competitive Intelligence Professionals (www.scip.org).

All GlobalData databases are continuously updated and revised.

17.3.1 Coverage

The objective of updating GlobalData’s coverage is to ensure that it represents the most up-to-date vision of the industry possible.

Changes to the industry taxonomy are built on the basis of extensive research of company, association and competitor sources.

Company coverage is based on three key factors: market capitalization; revenues; and media attention and innovation and market potential.

An exhaustive search of 56 member exchanges is conducted and companies are prioritized on the basis of their market capitalization.

Estimated revenue figures for all major companies, including private and governmental, are gathered and used to prioritize coverage.

Companies that are making the news or that are of particular interest due to their innovative approach are prioritized.

GlobalData aims to cover all major news events and deals in the energy industry, updated on a daily basis.

17.3.2 Secondary Research

The research process begins with extensive secondary research using internal and external sources to gather qualitative and quantitative information relating to each market.

The secondary research sources that are typically referred to include, but are not limited to:

Company websites, annual reports, financial reports, broker reports, investor presentations and Securities and Exchange Commission (SEC) filings

Industry trade journals and other technical literature

Internal proprietary and external databases

National government documents, statistical databases and market reports




Appendix

News articles, press releases and web-casts specific to the companies operating in the market

17.3.3 Primary Research

GlobalData conducts hundreds of primary interviews each year with industry participants and commentators in order to validate its data and analysis. A typical research interview fulfills the following functions:

Provides first-hand information on market size, market trends, growth trends, competitive landscape and future outlook

Helps to validate and strengthen secondary research findings

Further develops the analysis team’s expertise and market understanding




Appendix

17.4 Disclaimer All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means; electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData.

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