Engine No. 1 Activist Presentation Deck
ExxonMobil has been funding spending on low-return
projects by taking on large amounts of debt
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While its balance sheet once had almost zero net debt, today ExxonMobil has the
most debt in its history, increasing over $80 billion in the last 12 years, and since
2016 has had three debt ratings downgrades by S&P (including two pre-COVID)
Given financial pressure, ExxonMobil last year suspended its employee 401(k)
matching program and utilized enhanced "performance reviews" to conduct layoffs
ExxonMobil Net Debt ($ millions)
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
($10,000)
($20,000)
($30,000)
bill had be
"[ExxonMobil] had been unable to
fund its dividends through free
cash flow alone even in 2019 before
the pandemic."
Wall Street Journal, March 19, 2021
11
($20,680)
($22,582)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Chart Source: ExxonMobil 10-Ks & Bloomberg. Quote Source: Jinjoo Lee (Mar. 19, 2021). Oil Investors Hunt for Cash Gushers. Wall Street Journal.
2017
$43,811
$63,600
2018 2019 2020
REENERGIZE
EXXON//
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