Engine No. 1 Activist Presentation Deck
While ExxonMobil is focusing investors on its best assets,
many projects in portfolio offer less compelling returns
●
ExxonMobil presents any effort to diversify its portfolio as an extreme risk, yet its
long-term portfolio contains many projects likely to realize "utility" type returns
• Out of a projected $165bn of 2021-30 upstream capex, Wood Mackenzie
estimates that $68bn, or ~41%, will be invested in assets with sub-15% asset life
IRRs, and $45bn, or ~27%, in assets with sub-10% asset life IRRs
Asset Level IRR
50%
40%
30%
20%
10%
0%
-10%
-20%
—
Wood Mackenzie Projected Asset Level IRR by Project Size
Sub-10% Asset IRR
Permian Basin
(Midland, Spraberry)
Oil Sands
(Aspen)
Mozambique
LNG
PNG LNG
10%+ Asset IRR
Permian Basin
(Delaware, Wolfcamp)
2021-2030 Capital Expenditures
Guyana
Wood Mackenzie data as of April 2021. IRR calculated using Wood Mackenzie's Base Brent oil price projections and estimating cash flow over the life of each
asset. Asset level IRRs capture development cost to drill and exclude exploration/acquisitions costs and excludes any allocation of corporate G&A costs.
Column width represents capex dollars forecasted for each asset. Wood Mackenzie does not provide asset level IRRs for ~$16bn of the $165bn of capex
spend; these assets are excluded from the chart.
Permian Basin
(Delaware, Bone Spring)
REENERGIZE
EXXON//
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