•  First quarter loss of $610 million driven by $2.9 billion noncash charge from market-related write-downs
• Reducing 2020 capital and operating spend to manage unprecedented market challenges
• Contributing to global COVID-19 response through increased production of sanitizer, masks and medical gowns; donations to food banks, schools and firstresponders; and support for development of a reusable face mask

Exxon Mobil Corporation today announced an estimated first quarter 2020 loss of $610 million, or $0.14 per share assuming dilution, compared with earnings of $2.4 billion a year earlier. Results included a $2.9 billion charge from identified items, or $0.67 per share assuming dilution, reflecting noncash inventory valuation impacts from lower commodity prices and asset impairments. Cash flow from operating activities was $6.3 billion. Capital and exploration expenditures were $7.1 billion.

Oil-equivalent production was 4 million barrels per day, up 2 percent from the first quarter of 2019, with a 7 percent increase in liquids partly offset by a 5 percent decrease in gas. Excluding entitlement effects and divestments, oil-equivalent production was up 5 percent from the prior year, with Upstream liquids production up 9 percent on growth in the Permian and Guyana.

In response to market conditions, ExxonMobil announced that it is reducing 2020 capital spending by 30 percent and cash operating expenses by 15 percent. Capex is now expected to be approximately $23 billion for the year, down from the previously announced guidance of $33 billion.

“COVID-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins,” said Darren W. Woods, chairman and chief executive officer.“While we manage through these challenging times, we are not losing sight of the long-term fundamentals that drive our business. Economic activity will return, and populations and standards of living will increase, which will in turn drive demand for our products and a recovery of the industry.”

ExxonMobil’s capital allocation priorities remain unchanged. The company’s objectiveis to continue investing in industry-advantaged projects to create value, preserve cash for the dividend, and make appropriate use of its balance sheet.

“Our company remains strong and we will manage through the current market downturn as we have for decades,” said Woods.“Today’s circumstances are certainly unique, but our people have the experience, our business has the scale, and we have the financial strength to see us through and emerge stronger than ever.”

To minimize risks presented by COVID-19 and maintain operations,ExxonMobil has implemented enhanced cleaning procedures and modified work practices at sites around the world.

The company is maximizing production of products critical to the globalresponse, including isopropyl alcohol, which is used to manufacture hand sanitizer, and polypropylene, which is used to make protective masks, gowns and wipes. Manufacturing operations in Louisiana have been reconfigured to produce medical-grade hand sanitizer for donation to COVID-19 response efforts in Louisiana, NewJersey, New Mexico, New York, Pennsylvania and Texas. ExxonMobil is assisting in community-level relief efforts around the world with donations to support food banks and provide fuel, meals, and masks for health care workers and first responders. In addition, ExxonMobil is supporting efforts to redesign and accelerate production of reusable face masks and shields to help alleviate the shortage for medical workers and first responders.

First Quarter 2020 Business Highlights

Upstream

• Crude prices weakened significantly during the quarter, reflecting an unprecedented combination of oversupply and the impacts of COVID-19 on global demand.
• Natural gas prices were lower compared to the fourth quarter, reflecting reduced demand due to mild seasonal weather and COVID-19.
• Total production volumes were essentially unchanged fromthe fourth quarter.Excluding entitlement effects and divestments, both liquids and gas volumes increased 5 percent on growth and lower scheduled maintenance. Production in Guyana at the Liza Phase 1 development continues to ramp up, while the first oil shipment was successfully processed at the company’s refinery inBaytown, Texas.Permian production grew 20 percent from the fourth quarter, and was up 56 percent from the first quarter of 2019.

Downstream

• Industry fuels margins weakened driven by a significant demand decrease for jet fuel and gasoline, impacting results in the quarter. The company experienced favorable mark-to-market derivative impacts associated with its trading activity.
• Scheduled maintenance activity was lower than fourth quarter, while overall refining throughput was essentially flat as the company managed refinery operations in line with fuel demand and integrated chemical manufacturing needs.

Chemical

• While chemical realizations remain impacted by industry capacity additions, the company experienced margin improvement across the portfolio due to a significant drop in liquids feedstock prices.
• ExxonMobil has increased production at its U.S. Gulf Coast and Asia manufacturing facilities of critical raw materials used in medical masks, gowns and hand sanitizer to help support front line COVID-19 response. The additional monthly production of specialized polypropylene and isopropyl alcohol is enough for 200 million masks or 20 million gowns, and up to 50 million 4-ounce bottles of medical-grade hand sanitizer.
• In April, the company reconfigured manufacturing operations in Louisiana to produce medical-grade hand sanitizer for donation to COVID-19 response efforts in Louisiana, New Jersey, New Mexico, New York, Pennsylvania, and Texas. Initial production of 160,000 gallons of medical grade sanitizer – enough to fill nearly 5 million 4-ounce bottles – is being distributed to medical providers and first responders. Additional donation locations are planned.

Strengthening the Portfolio

ExxonMobil made an additional discovery offshoreGuyanaat the Uaru well during the first quarter, marking its 16th discovery on the Stabroek Block and adding to the previously announced estimated recoverable resource in Guyana of more than 8 billion oil-equivalent barrels. Production from the Liza Phase 1 development continues to ramp up and will reach up to 120,000 gross barrels of oil per day, utilizing the Liza Destiny floating production storage and offloading vessel (FPSO). The Liza Unity FPSO, which will be employed for the second phase of Liza development and will have a gross production capacity of 220,000 barrels of oil per day, is under construction and expected to start production in 2022. Pending government approvals and project sanctioning of a third development, production fromthePayara field north of the Liza discoveries will increase gross production by an additional 220,000 barrels of oil per day.

CapEx

ExxonMobil announced that it is reducing its 2020 capital spending by 30 percent and lowering cash operating expenses by 15 percent in response to low commodity prices resulting from oversupply and demand weakness from the COVID-19 pandemic. Capital investments for 2020 are expected to be about $23 billion, down from the previously announced $33 billion. Reduced spending is being achieved through increased efficiencies, lower market prices, and slower project pace including the U.S. Permian Basin, Rovuma LNG in Mozambique, and expansions of downstream and chemical facilities. The 15 percent decrease in cash operatingexpenses is driven by increasedefficiencies,reduced activity, andlower energy costs. ExxonMobil continues to monitor market developments and evaluate additional reduction steps.

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