Sustainably Growing Shareholder Value slide image

Sustainably Growing Shareholder Value

SUPPLEMENTAL INFORMATION NON-GAAP AND OTHER MEASURES. With respect to historical periods, reconciliation information is provided on pages 80-84 and in the Frequently Used Terms available on the Investor page of our website at www.exxonmobil.com under the heading News & Resources for certain terms used in this presentation including earnings excluding identified items; operating costs; cash opex excluding energy and production taxes; 2019 earnings, ex. asset management and tax items and adjusted to 2021 $60/bbl real Brent and 10-year average Downstream and Chemical margins; 2019 cash flow from operating activities, ex. asset management and tax items and adjusted to 2021 $60/bbl real Brent; return on average capital employed (ROCE); free cash; free cash flow; operating cash flow; and cash flow from operations and asset sales. For future periods, we are unable to provide a reconciliation of forward-looking non-GAAP or other measures to the most comparable GAAP financial measures because the information needed to reconcile these measures is dependent on future events, many of which are outside management's control as described above. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with our accounting policies for future periods is extremely difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-GAAP measures are estimated in a manner consistent with the relevant definitions and assumptions noted above on page 79. DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Breakeven. Represents the 2021 Brent price, adjusted for inflation, needed to generate cash flow from operations and asset sales sufficient to fund dividends to shareholders and additions to PP&E, net investments and advances, and other financing items. Assumes Downstream and Chemical margins reflect annual historical averages for the 10-year period from 2010-2019 and 2021 $3/mmbtu Henry Hub gas price, adjusted for inflation. This measure is useful in understanding the capacity to fund cash uses in various oil price environments. Cash opex excluding energy and production taxes. Cash operating expenses excluding energy and production taxes are a subset of total operating costs that are stewarded internally to support management's oversight of spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize cash through disciplined expense management for items within management's control. For information concerning the calculation and reconciliation of cash operating expenses see the table on page 81. Debt-to-capital ratio (leverage). Total debt / (total debt + total equity). ExxonMobil emissions reduction. A category of Low Carbon Solutions project opportunities and capital spending. Refers to projects and activities that are focused on reduction of Scope 1 and 2 GHG emission reductions of operated assets. Free cash. Free cash is operating cash flow less capital investment. This measure is useful when approximating contributions to cash available for financing activities, applied to the Upstream business. 85
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