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Exxon Mobil XOM Form 10-Q filing Q1 FY2025

Filed
May 5, 2025
Fiscal quarter
Q1 FY2025
Calendar quarter
Q1 2025
Accession
0000034088-25-000024

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Income - Three months ended March 31, 2025 and 2024 3

Condensed Consolidated Statement of Comprehensive Income - Three months ended March 31, 2025 and 2024 4

Condensed Consolidated Balance Sheet - As of March 31, 2025 and December 31, 2024 5

Condensed Consolidated Statement of Cash Flows - Three months ended March 31, 2025 and 2024 6

Condensed Consolidated Statement of Changes in Equity - Three months ended March 31, 2025 and 2024 7

Notes to Condensed Consolidated Financial Statements 8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Item 3. Quantitative and Qualitative Disclosures About Market Risk 31

Item 4. Controls and Procedures 31

PART II. OTHER INFORMATION

Item 1. Legal Proceedings 32

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Item 5. Other Information 32

Item 6. Exhibits 32

Index to Exhibits 33

Signature 34

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars, unless noted)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Revenues and other income
Sales and other operating revenue
Income from equity affiliates1,3691,842
Other income
Total revenues and other income
Costs and other deductions
Crude oil and product purchases
Production and manufacturing expenses
Selling, general and administrative expenses
Depreciation and depletion (includes impairments)
Exploration expenses, including dry holes64148
Non-service pension and postretirement benefit expense
Interest expense
Other taxes and duties
Total costs and other deductions
Income (loss) before income taxes
Income tax expense (benefit)
Net income (loss) including noncontrolling interests8,0338,566
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to ExxonMobil
Earnings (loss) per common share (dollars)
Earnings (loss) per common share - assuming dilution (dollars)
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Net income (loss) including noncontrolling interests8,0338,566
Other comprehensive income (net of income taxes)
Foreign exchange translation adjustment()
Postretirement benefits reserves adjustment (excluding amortization)()()
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs239
Total other comprehensive income (loss)()
Comprehensive income (loss) including noncontrolling interests
Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income (loss) attributable to ExxonMobil
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

CONDENSED CONSOLIDATED BALANCE SHEET

(millions of dollars, unless noted)March 31, 2025December 31, 2024
ASSETS
Current assets
Cash and cash equivalents17,03623,029
Cash and cash equivalents – restricted1,476158
Notes and accounts receivable – net46,30343,681
Inventories
Crude oil, products and merchandise
Materials and supplies
Other current assets
Total current assets
Investments, advances and long-term receivables
Property, plant and equipment – net
Other assets, including intangibles – net
Total Assets
LIABILITIES
Current liabilities
Notes and loans payable
Accounts payable and accrued liabilities
Income taxes payable
Total current liabilities
Long-term debt
Postretirement benefits reserves
Deferred income tax liabilities
Long-term obligations to equity companies1,3811,346
Other long-term obligations24,96325,719
Total Liabilities182,102182,869
Commitments and contingencies (Note 3)
EQUITY
Common stock without par value ( million shares authorized, million shares issued)
Earnings reinvested474,290470,903
Accumulated other comprehensive income(14,338)(14,619)
Common stock held in treasury ( million shares at March 31, 2025 and million shares at December 31, 2024)()()
ExxonMobil share of equity262,720263,705
Noncontrolling interests
Total Equity269,806270,606
Total Liabilities and Equity
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) including noncontrolling interests8,0338,566
Depreciation and depletion (includes impairments)
Changes in operational working capital, excluding cash and debt()
All other items – net()
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment()()
Proceeds from asset sales and returns of investments
Additional investments and advances()()
Other investing activities including collection of advances93215
Net cash used in investing activities()()
CASH FLOWS FROM FINANCING ACTIVITIES
Additions to long-term debt
Reductions in long-term debt()
Reductions in short-term debt()()
Additions/(reductions) in debt with three months or less maturity()()
Cash dividends to ExxonMobil shareholders()()
Cash dividends to noncontrolling interests()()
Changes in noncontrolling interests()()
Inflows from noncontrolling interests for major projects
Common stock acquired()()
Net cash used in financing activities()()
Effects of exchange rate changes on cash86(324)
Increase/(decrease) in cash and cash equivalents (including restricted)()
Cash and cash equivalents at beginning of period (including restricted)23,18731,568
Cash and cash equivalents at end of period (including restricted)18,51233,349
SUPPLEMENTAL DISCLOSURES
Income taxes paid
Cash interest paid
Included in cash flows from operating activities
Capitalized, included in cash flows from investing activities
Total cash interest paid
Noncash right of use assets recorded in exchange for lease liabilities
Operating leases
Finance leases
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(millions of dollars, unless noted)Exxon Mobil Share of EquityCommon StockExxon Mobil Share of EquityEarnings ReinvestedExxon Mobil Share of EquityAccumulated Other Comprehensive IncomeExxon Mobil Share of EquityCommon Stock Held in TreasuryExxon Mobil Share of EquityNon-controlling InterestsTotal Equity
Balance as of December 31, 202317,781453,927(11,989)(254,917)204,8027,736212,538
Amortization of stock-based awards197197197
Other(7)(7)6()
Net income (loss) for the period8,2208,2203468,566
Dividends - common shares(3,808)(3,808)(166)(3,974)
Other comprehensive income (loss)(1,180)(1,180)(120)()
Share repurchases, at cost(2,978)(2,978)(2,978)
Dispositions44
Balance as of March 31, 202417,971458,339(13,169)(257,891)205,2507,802213,052
Balance as of December 31, 202446,238470,903(14,619)(238,817)263,7056,901270,606
Amortization of stock-based awards194194194
Other(6)93(4)()
Net income (loss) for the period7,7137,7133208,033
Dividends - common shares(4,335)(4,335)(141)(4,476)
Other comprehensive income (loss)28128110
Share repurchases, at cost(4,852)(4,852)(4,852)
Dispositions1111
Balance as of March 31, 202546,426474,290(14,338)(243,658)262,7207,086269,806
Common Stock Share Activity(millions of shares)Three Months Ended March 31, 2025IssuedThree Months Ended March 31, 2025Held in TreasuryThree Months Ended March 31, 2025OutstandingThree Months Ended March 31, 2024IssuedThree Months Ended March 31, 2024Held in TreasuryThree Months Ended March 31, 2024Outstanding
Balance as of December 31()()
Share repurchases, at cost()()()()
Dispositions
Balance as of March 31()()
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2024 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.

Restricted cash represents sale proceeds required to be set aside by a contractual arrangement for any potential like kind exchange. The restriction will lapse upon the earlier of completion of the exchange or the expiry of the underlying time period, which is less than one year.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

Note 2. Pioneer Natural Resources Merger

On May 3, 2024, the Corporation acquired Pioneer Natural Resources Company ("Pioneer"), an independent oil and gas exploration and production company. In connection with the acquisition, we issued 545 million shares of ExxonMobil common stock having a fair value of $63 billion on the acquisition date, and assumed debt with a fair value of $5 billion.

The transaction was accounted for as a business combination in accordance with ASC 805, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed.

(billions of dollars)Pioneer
Current assets (1)3
Other non-current assets1
Property, plant & equipment (2)84
Total identifiable assets acquired88
Current liabilities (1)3
Long-term debt (3)5
Deferred income tax liabilities (4)16
Other non-current liabilities2
Total liabilities assumed26
Net identifiable assets acquired62
Goodwill (5)1
Net assets (6)63
(1) Current assets and current liabilities consist primarily of accounts receivable and payable, with their respective fair values approximating historical values given their short-term duration, expectation of insignificant bad debt expense, and our credit rating.
(2) Property, plant and equipment, of which a significant portion relates to crude oil and natural gas properties, was primarily valued using the income approach. Significant inputs and assumptions used in the income approach included estimates for commodity prices, future oil and gas production volumes, drilling and development costs, and risk-adjusted discount rates. Collectively, these inputs are level 3 inputs.
(3) Long-term debt was valued using market prices as of the acquisition date, which reflects the use of level 1 inputs.
(4) Deferred income taxes represent the tax effects of differences in the tax basis and acquisition date fair values of assets acquired and liabilities assumed.
(5) Goodwill was allocated to the Upstream segment.
(6) Provisional fair value measurements were made for assets acquired and liabilities assumed. Adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as we continue to evaluate the information necessary to complete the analysis.

Debt Assumed in the Merger

The following table presents long-term debt assumed at closing:

(millions of dollars)Par ValueFair Valueas of May 2, 2024
0.250% Convertible Senior Notes due May 2025 (1)4501,327
1.125% Senior Notes due January 2026750699
5.100% Senior Notes due March 20261,1001,096
7.200% Senior Notes due January 2028241252
4.125% Senior Notes due February 2028138130
1.900% Senior Notes due August 20301,100914
2.150% Senior Notes due January 20311,000832
(1) In June 2024, the Corporation redeemed in full all of the Convertible Senior Notes assumed from Pioneer for an amount consistent with the acquisition date fair value.

Note 3. Litigation and Other Contingencies

Litigation

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters, as well as other matters, which management believes should be disclosed.

State and local governments and other entities in various jurisdictions across the United States and its territories have filed a number of legal proceedings against several oil and gas companies, including ExxonMobil, requesting unprecedented legal and equitable relief for various alleged injuries purportedly connected to climate change. These lawsuits assert a variety of novel, untested claims under statutory and common law. Additional such lawsuits may be filed. We believe the legal and factual theories set forth in these proceedings are meritless and represent an inappropriate attempt to use the court system to usurp the proper role of policymakers in addressing the societal challenges of climate change.

Local governments in Louisiana have filed unprecedented legal proceedings against a number of oil and gas companies, including ExxonMobil, requesting compensation for the restoration of coastal marsh erosion in the state. We believe the factual and legal theories set forth in these proceedings are meritless.

While the outcome of any litigation can be unpredictable, we believe the likelihood is remote that the ultimate outcomes of these lawsuits will have a material adverse effect on the Corporation’s operations, financial condition, or financial statements taken as a whole. We will continue to defend vigorously against these claims.

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2025, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. Where it is not possible to make a reasonable estimation of the maximum potential amount of future payments, future performance is expected to be either immaterial or have only a remote chance of occurrence.

March 31, 2025

View SEC source
(millions of dollars)Equity Company Obligations (1)Other Third-Party ObligationsTotal
Guarantees
Debt-related1,0511651,216
Other6756,0756,750
Total1,7266,240
(1) ExxonMobil share.

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.

Note 4. Other Comprehensive Income Information

Exxon Mobil Share of Accumulated Other Comprehensive Income(millions of dollars)Cumulative Foreign Exchange Translation AdjustmentPostretirement Benefits Reserves AdjustmentTotal
Balance as of December 31, 2023(13,056)1,067(11,989)
Current period change excluding amounts reclassified from accumulated other comprehensive income (2)(1,138)(48)(1,186)
Amounts reclassified from accumulated other comprehensive income66
Total change in accumulated other comprehensive income(1,138)(42)(1,180)
Balance as of March 31, 2024(14,194)1,025(13,169)
Balance as of December 31, 2024(16,166)1,547(14,619)
Current period change excluding amounts reclassified from accumulated other comprehensive income (2)295(36)259
Amounts reclassified from accumulated other comprehensive income2222
Total change in accumulated other comprehensive income295(14)281
Balance as of March 31, 2025(15,871)1,533(14,338)
(2) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $(99) million and $84 million in 2025 and 2024, respectively.
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense) (millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit expense)(30)(12)
Income Tax (Expense)/Credit For Components of Other Comprehensive Income (millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Foreign exchange translation adjustment()
Postretirement benefits reserves adjustment (excluding amortization)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs()()
Total74(74)

Note 5. Earnings Per Share

Earnings per common shareThree Months Ended March 31, 2025Three Months Ended March 31, 2024
Net income (loss) attributable to ExxonMobil (millions of dollars)
Weighted-average number of common shares outstanding (millions of shares) (1)
Earnings (loss) per common share (dollars) (2)
Dividends paid per common share (dollars)0.990.95
(1) Includes restricted shares not vested.
(2) Earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

Note 6. Pension and Other Postretirement Benefits

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Components of net benefit cost
Pension Benefits - U.S.
Service cost136113
Interest cost170168
Expected return on plan assets(149)(181)
Amortization of actuarial loss/(gain)1821
Amortization of prior service cost(7)(8)
Net pension enhancement and curtailment/settlement cost363
Net benefit cost204116
Pension Benefits - Non-U.S.
Service cost7883
Interest cost222227
Expected return on plan assets(221)(261)
Amortization of actuarial loss/(gain)925
Amortization of prior service cost1313
Net benefit cost10187
Other Postretirement Benefits
Service cost2318
Interest cost6563
Expected return on plan assets(4)(5)
Amortization of actuarial loss/(gain)(24)(26)
Amortization of prior service cost(15)(16)
Net benefit cost4534

Note 7. Financial Instruments and Derivatives

The estimated fair value of financial instruments and derivatives at March 31, 2025 and December 31, 2024, and the related hierarchy level for the fair value measurement was as follows:

March 31, 2025

View SEC source
(millions of dollars)Fair ValueLevel 1Fair ValueLevel 2Fair ValueLevel 3Fair ValueTotal Gross Assets& LiabilitiesEffect of Counterparty NettingEffect of Collateral NettingDifference in Carrying Value and Fair ValueNet Carrying Value
Assets
Derivative assets (1)5,2408876,127(5,516)(70)541
Advances to/receivables from equity companies (2)(6)2,4354,6887,1233747,497
Other long-term financial assets (3)1,4971,5093,0062343,240
Liabilities
Derivative liabilities (4)5,4388596,297(5,516)(268)513
Long-term debt (5)25,1092,09627,2053,56030,765
Long-term obligations to equity companies (6)1,4271,427(46)1,381
Other long-term financial liabilities (7)55755755612

December 31, 2024

View SEC source
(millions of dollars)Fair ValueLevel 1Fair ValueLevel 2Fair ValueLevel 3Fair ValueTotal Gross Assets& LiabilitiesEffect of Counterparty NettingEffect of Collateral NettingDifference in Carrying Value and Fair ValueNet Carrying Value
Assets
Derivative assets (1)3,2231,2064,429(3,913)(3)513
Advances to/receivables from equity companies (2)(6)2,4664,1676,6334517,084
Other long-term financial assets (3)1,4681,5042,9722473,219
Liabilities
Derivative liabilities (4)3,5611,4164,977(3,913)(341)723
Long-term debt (5)28,8841,81330,6973,93534,632
Long-term obligations to equity companies (6)1,3931,393(47)1,346
Other long-term financial liabilities (7)58358357640
(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net.
(2) Included in the Balance Sheet line: Investments, advances and long-term receivables.
(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net.
(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations.
(5) Excluding finance lease obligations.
(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.
(7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At March 31, 2025 and December 31, 2024, respectively, the Corporation had million and million of collateral under master netting arrangements not offset against the derivatives on the Condensed Consolidated Balance Sheet, primarily related to initial margin requirements.

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of March 31, 2025, the Corporation has designated billion of its Euro-denominated debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.0 billion as of the end of first quarter 2025.

Derivative Instruments

The Corporation’s size, strong capital structure, geographic diversity, and the complementary nature of its business segments reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Condensed Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue" and in the Consolidated Statement of Cash Flows in “Cash Flows from Operating Activities”. The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2025 and December 31, 2024, or results of operations for the periods ended March 31, 2025 and 2024.

The Corporation operates a program to hedge certain of its fixed-rate debt instruments against changes in fair value due to changes in the designated benchmark interest rate. This program utilizes fair value hedge accounting. The derivative (hedging) instruments are fixed-for-floating interest rate swaps, with settlement dates that correspond to the interest payments associated with the fixed-rate debt (hedged item). Changes in the fair values of the hedging instruments are perfectly offset by changes in the fair values of the hedged items; the effects of these changes in fair values are recorded in "Interest expense" in the Consolidated Statement of Income. This program was not material to the Consolidated Financial Statements as of the end of first quarter 2025.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting, and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments at March 31, 2025 and December 31, 2024, was as follows:

(millions)March 31, 2025December 31, 2024
Crude oil (barrels)3513
Petroleum products (barrels)(28)(32)
Natural gas (MMBTUs)(702)(675)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Condensed Consolidated Statement of Income are included in the following lines on a before-tax basis:

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Sales and other operating revenue19(792)
Crude oil and product purchases23
Total21(789)

Note 8. Disclosures about Segments and Related Information

(millions of dollars)Three Months Ended March 31, 2025UpstreamU.S.UpstreamNon-U.S.Energy ProductsU.S.Energy ProductsNon-U.S.Chemical ProductsU.S.Chemical ProductsNon-U.S.Specialty ProductsU.S.Specialty ProductsNon-U.S.Segment Total
Revenues and other income
Sales and other operating revenue81,039
Income from equity affiliates()
Intersegment revenue6,5569,8504,6246,6721,67573954911430,779
Other income()()346
Segment revenues and other income13,74328,6013,7211,916113,593
Costs and other items
Crude oil and product purchases5,42925,1062,15499777,087
Operating expenses, excl. depreciation and depletion (1)2,7632,0821,06347212,474
Depreciation and depletion (includes impairments)3,038195145275,427
Interest expense3744
Other taxes and duties647871626,036
Total costs and other deductions11,33128,1703,3781,498101,068
Segment income (loss) before income taxes2,41243134341812,525
Income tax expense (benefit)5429488()963,676
Segment net income (loss) incl. noncontrolling interests1,8703372553228,849
Net income (loss) attributable to noncontrolling interests40338
Segment income (loss)1,8704,886297530255183223338,511
Reconciliation of consolidated revenues
Segment revenues and other income113,593
Other revenues (2)316
Elimination of intersegment revenues(30,779)
Total consolidated revenues and other income
Reconciliation of income (loss) attributable to ExxonMobil
Total segment income (loss)8,511
Corporate and Financing income (loss)(798)
Net income (loss) attributable to ExxonMobil
(millions of dollars)UpstreamEnergy ProductsChemical ProductsSpecialty ProductsSegment Total
U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.
Three Months Ended March 31, 2025
Additions to property, plant and equipment (3)2,780116145495,510
As of March 31, 2025
Investments in equity companies4,9334542,99834,135
Total assets153,43233,10517,4002,837415,918
Reconciliation to Corporate TotalSegment TotalCorporate and FinancingCorporate Total
Three Months Ended March 31, 2025
Additions to property, plant and equipment (3)5,5105196,029
As of March 31, 2025
Investments in equity companies34,135(132)
Total assets415,91835,990
(1) Operating expenses, excl. depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement: Production and manufacturing expenses; Selling, general and administrative expenses; Exploration expenses, including dry holes; and Non-service pension and postretirement benefit expense.
(2) Primarily Corporate and Financing Interest revenue of million.
(3) Includes non-cash additions.
Due to rounding, numbers presented may not add up precisely to the totals indicated.
(millions of dollars)Three Months Ended March 31, 2024UpstreamU.S.UpstreamNon-U.S.Energy ProductsU.S.Energy ProductsNon-U.S.Chemical ProductsU.S.Chemical ProductsNon-U.S.Specialty ProductsU.S.Specialty ProductsNon-U.S.Segment Total
Revenues and other income
Sales and other operating revenue80,387
Income from equity affiliates()()
Intersegment revenue5,9889,9806,5586,7521,8651,02565516432,987
Other income()201
Segment revenues and other income8,03431,4374,1172,127115,489
Costs and other items
Crude oil and product purchases2,99327,2762,2911,14680,176
Operating expenses, excl. depreciation and depletion (1)1,7272,01499142811,523
Depreciation and depletion expense1,842196159224,591
Interest expense28147
Other taxes and duties988201726,324
Total costs and other deductions6,68830,3073,4581,598102,661
Segment income (loss) before income taxes1,3461,13065952912,828
Income tax expense (benefit)2922361551253,884
Segment net income (loss) incl. noncontrolling interests1,0548945044048,944
Net income (loss) attributable to noncontrolling interests58362
Segment income (loss)1,0544,6068365405042814043578,582
Reconciliation of consolidated revenues
Segment revenues and other income115,489
Other revenues (2)581
Elimination of intersegment revenues(32,987)
Total consolidated revenues and other income
Reconciliation of income (loss) attributable to ExxonMobil
Total segment income (loss)8,582
Corporate and Financing income (loss)(362)
Net income (loss) attributable to ExxonMobil
(millions of dollars)UpstreamEnergy ProductsChemical ProductsSpecialty ProductsSegment Total
U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.
Three Months Ended March 31, 2024
Additions to property, plant and equipment (3)2,028142100144,562
As of December 31, 2024
Investments in equity companies4,8844443,01634,118
Total assets154,91432,14317,4452,882411,124
Reconciliation to Corporate TotalSegment TotalCorporate and FinancingCorporate Total
Three Months Ended March 31, 2024
Additions to property, plant and equipment (3)4,5625125,074
As of December 31, 2024
Investments in equity companies34,118(108)
Total assets411,12442,351
(1) Operating expenses, excl. depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement: Production and manufacturing expenses; Selling, general and administrative expenses; Exploration expenses, including dry holes; and Non-service pension and postretirement benefit expense.
(2) Primarily Corporate and Financing Interest revenue of million.
(3) Includes non-cash additions.
Due to rounding, numbers presented may not add up precisely to the totals indicated.

Revenue from Contracts with Customers

Sales and other operating revenue include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in Notes and accounts receivable – net reported on the Balance Sheet also includes both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.

Sales and other operating revenue(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Revenue from contracts with customers56,93158,419
Revenue outside the scope of ASC 606
Total
Geographic Sales and Other Operating Revenue(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
United States
Non-U.S.
Total
Significant Non-U.S. revenue sources include: (1)
Canada
United Kingdom
Singapore
(1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in non-U.S. operations where attribution to a specific country is not practicable.

Note 9. Divestment Activities

Through March 31, 2025, the Corporation realized proceeds of approximately $1.8 billion and net after-tax earnings of approximately $0.2 billion from its divestment activities. This included the sale of select conventional assets in Texas and New Mexico, Mobil Argentina S.A., as well as other smaller divestments.

In 2024, the Corporation realized proceeds of approximately $5.0 billion and recognized net after-tax earnings of approximately $1.0 billion from its divestment activities. This included the sale of the Santa Ynez Unit and associated facilities in California, Mobil Producing Nigeria Unlimited, ExxonMobil Exploration Argentina, the Fos-sur-Mer Refinery (France), the Adriatic LNG terminal (Italy), and certain conventional and unconventional assets in the United States, as well as other smaller divestments.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

During the first quarter of 2025, the price of crude oil remained roughly flat relative to fourth quarter 2024 and near the middle of the 10-year historical range (2010-2019). Natural gas prices improved during the quarter and moved above the 10-year range on stronger global demand, driven by colder weather in the U.S. and Europe. Global industry refining margins declined and moved below the low end of the 10-year range, driven by weakness in Asia Pacific from capacity additions and higher regional feed costs. The Corporation benefited from its relatively large refining footprint in North America where industry margins improved as a result of turnarounds and industry outages. Chemical margins remained at bottom of cycle conditions, and well below the 10-year range, as growing demand was met by continued capacity additions.

During 2025, the U.S. announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries. In response, many countries announced their own retaliatory tariffs. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the U.S. or its trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions is highly uncertain. Additionally, significant uncertainty exists as to what effects these actions will ultimately have on the Corporation, our suppliers and our customers, as well as on the overall macroeconomic environment. We continually monitor the global trade environment and work to mitigate potential impacts.

Selected Earnings Driver Definitions

The earnings drivers provide additional visibility into our business results. The Company evaluates these drivers periodically to determine if any enhancements may provide helpful insights to the market. Listed below are descriptions of the earnings drivers:

Advantaged Volume Growth. Represents earnings impacts from change in volume/mix from advantaged assets, advantaged projects, and high-value products.

  • Advantaged Assets (Advantaged growth projects). Includes Permian, Guyana, and LNG.
  • Advantaged Projects. Includes capital projects and programs of work that contribute to Energy, Chemical, and/or Specialty Products segments that drive integration of segments/businesses, increase yield of higher value products, or deliver higher than average returns.
  • High-Value Products. Includes performance products and lower-emission fuels. Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users. Lower-emission fuels refers to fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport.

Base Volume. Represents all volume/mix drivers not included in Advantaged Volume Growth defined above.

Structural Cost Savings. Represents after-tax earnings effects of Structural Cost Savings as defined on page19, including cash operating expenses related to divestments.

Expenses. Represents all expenses otherwise not included in other earnings drivers.

Timing Effects. Represents timing effects that are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting).

Earnings (loss) excluding Identified Items (Non-GAAP)

Earnings (loss) excluding Identified Items are earnings (loss) excluding individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings (loss) impact of an Identified Item for an individual segment may be less than $250 million when the item impacts several segments or several periods. Earnings (loss) excluding Identified Items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for Identified Items. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Earnings (loss) excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income (loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP.

Three Months Ended March 31, 2025(millions of dollars)UpstreamU.S.UpstreamNon-U.S.Energy ProductsU.S.Energy ProductsNon-U.S.Chemical ProductsU.S.Chemical ProductsNon-U.S.Specialty ProductsU.S.Specialty ProductsNon-U.S.Corporate and FinancingTotal
Earnings (loss) (U.S. GAAP)1,8704,88629753025518322333(798)7,713
Total Identified Items
Earnings (loss) excluding Identified Items (Non-GAAP)1,8704,88629753025518322333(798)7,713
Three Months EndedMarch 31, 2024UpstreamEnergy ProductsChemical ProductsSpecialty ProductsCorporate and FinancingTotal
(millions of dollars)U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.
Earnings (loss) (U.S. GAAP)1,0544,606836540504281404357(362)8,220
Total Identified Items
Earnings (loss) excluding Identified Items (Non-GAAP)1,0544,606836540504281404357(362)8,220

References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S. GAAP) from the Condensed Consolidated Statement of Income. Unless otherwise indicated, references to earnings (loss); Upstream, Energy Products, Chemical Products, Specialty Products, and Corporate and Financing earnings (loss); and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

Structural Cost Savings (Non-GAAP)

Structural Cost Savings describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $12.7 billion, which included an additional $0.6 billion in the first three months of 2025. The total change between periods in expenses below will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new business venture development, and early-stage projects. Structural Cost Savings from new operations, mergers and acquisitions, and new business venture developments are included in the cumulative Structural Cost Savings. Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels. Structural Cost Savings 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 spending through disciplined expense management.

Dollars in billions (unless otherwise noted)Twelve Months Ended December 31, 2019Twelve Months Ended December 31, 2024Three Months Ended March 31, 2024Three Months Ended March 31, 2025
Components of Operating Costs
From ExxonMobil’s Consolidated Statement of Income(U.S. GAAP)
Production and manufacturing expenses36.839.69.110.1
Selling, general and administrative expenses11.410.02.52.5
Depreciation and depletion (includes impairments)19.023.44.85.7
Exploration expenses, including dry holes1.30.80.10.1
Non-service pension and postretirement benefit expense1.20.10.1
Subtotal69.774.016.518.5
ExxonMobil’s share of equity company expenses (Non-GAAP)9.19.62.42.6
Total Adjusted Operating Costs (Non-GAAP)78.883.618.921.1
Total Adjusted Operating Costs (Non-GAAP)78.883.618.921.1
Less:
Depreciation and depletion (includes impairments)19.023.44.85.7
Non-service pension and postretirement benefit expense1.20.10.1
Other adjustments (includes equity company depreciation and depletion)3.63.70.91.3
Total Cash Operating Expenses (Cash Opex) (Non-GAAP)55.056.413.214.1
Energy and production taxes (Non-GAAP)11.013.93.43.9
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP)44.042.59.810.2
Change vs 2019Change vs 2024
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP)-1.5+0.4
Market+4.0+0.0
Activity / Other+6.6+1.0
Structural Cost Savings-12.1-0.6
Due to rounding, numbers presented may not add up precisely to the totals indicated.

REVIEW OF FIRST QUARTER 2025 RESULTS

ExxonMobil’s first quarter 2025 earnings were $7.7 billion, compared to $8.2 billion a year earlier. The decrease in earnings was mainly driven by a significant decline in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses driven by growth initiatives, partly offset by increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts and Structural Cost Savings. Cash capital expenditures were $5.9 billion, up $0.7 billion from first quarter 2024.

UPSTREAM

Upstream Financial Results(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Earnings (loss) (U.S. GAAP)
United States1,8701,054
Non-U.S.4,8864,606
Total6,7565,660
Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States1,8701,054
Non-U.S.4,8864,606
Total6,7565,660
(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Upstream First Quarter Earnings Driver Analysis

(millions of dollars)

Price – Price impacts decreased earnings by $450 million, driven by a decrease in liquids realizations, partly offset by an increase in natural gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $920 million, driven by growing production in Permian, including the Pioneer acquisition, and Guyana.

Base Volume – Base volumes from divestments decreased earnings by $180 million.

Structural Cost Savings – Increased earnings by $310 million.

Expenses – Higher expenses decreased earnings by $180 million from higher depreciation.

Other – All other items increased earnings by $400 million, mainly driven by divestments.

Timing Effects – Favorable timing effects, mainly from derivatives mark-to-market impacts, increased earnings by $280 million.

Upstream Operational ResultsThree Months Ended March 31, 2025Three Months Ended March 31, 2024
Net production of crude oil, natural gas liquids, bitumen and synthetic oil (thousands of barrels daily)
United States1,418816
Canada/Other Americas760772
Europe44
Africa137224
Asia796711
Australia/Oceania2430
Worldwide3,1392,557
Net natural gas production available for sale (millions of cubic feet daily)
United States3,2662,241
Canada/Other Americas4294
Europe331377
Africa118150
Asia3,4573,274
Australia/Oceania1,2561,226
Worldwide8,4707,362
Oil-equivalent production (1)(thousands of oil-equivalent barrels daily)4,5513,784
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
Upstream Additional Information(thousands of barrels daily)Three Months Ended March 31,
Volumes reconciliation (Oil-equivalent production) (1)
20243,784
Entitlements - Net Interest
Entitlements - Price / Spend / Other4
Government Mandates(4)
Divestments(122)
Growth / Other889
20254,551
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
Due to rounding, numbers presented may not add up precisely to the totals indicated.
1Q 2025versus 1Q 20241Q 2025 production of 4.6 million oil-equivalent barrels per day increased 767 thousand oil-equivalent barrels per day from 1Q 2024, driven by the Pioneer acquisition.

Listed below are descriptions of ExxonMobil’s volumes reconciliation drivers which are provided to facilitate understanding of the terms.

Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining drivers. These drivers consist of net interest changes specified in Production Sharing Contracts (PSCs), which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession. Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.

Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining drivers. These drivers include changes in oil and gas prices or spending levels from one period to another. According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil. For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs. These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas. Such drivers can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

Government Mandates are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments.

Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a field or asset in exchange for financial or other economic consideration.

Growth and Other comprise all other operational and non-operational drivers not covered by the above definitions that may affect volumes attributable to ExxonMobil. Such drivers include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.

ENERGY PRODUCTS

Energy Products Financial Results(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Earnings (loss) (U.S. GAAP)
United States297836
Non-U.S.530540
Total8271,376
Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States297836
Non-U.S.530540
Total8271,376
(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Energy Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Industry refining margins decreased earnings by $1,290 million, normalizing from historically high levels.

Advantaged Volume Growth – Higher volumes from advantaged projects increased earnings by $10 million.

Base Volume – Lower base volumes decreased earnings by $70 million.

Structural Cost Savings – Increased earnings by $110 million.

Expenses – Lower expenses increased earnings by $60 million.

Other – All other items increased earnings by $200 million, reflecting favorable forex and inventory impacts.

Timing Effects – Favorable timing effects, mainly from the absence of prior year unfavorable derivatives mark-to-market impacts, increased earnings by $430 million.

Energy Products Operational Results(thousands of barrels daily)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Refinery throughput
United States1,7891,900
Canada397407
Europe986954
Asia Pacific447402
Other191180
Worldwide3,8103,843
Energy Products sales (1)
United States2,7282,576
Non-U.S.2,5552,656
Worldwide5,2835,232
Gasoline, naphthas2,1622,178
Heating oils, kerosene, diesel1,7241,742
Aviation fuels366339
Heavy fuels158214
Other energy products873759
Worldwide5,2835,232
(1) Data reported net of purchases/sales contracts with the same counterparty.
Due to rounding, numbers presented may not add up precisely to the totals indicated.

CHEMICAL PRODUCTS

Chemical Products Financial Results(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Earnings (loss) (U.S. GAAP)
United States255504
Non-U.S.18281
Total273785
Earnings (loss) excluding Identified Items (2) (Non-GAAP)
United States255504
Non-U.S.18281
Total273785
(2) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Chemical Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Weaker margins decreased earnings by $290 million, driven by higher feed costs in North America.

Advantaged Volume Growth – High-value product sales growth increased earnings by $10 million.

Base Volume – Lower base volumes decreased earnings by $70 million, driven by absence of prior year opportunistic sales.

Structural Cost Savings – Increased earnings by $30 million.

Expenses – Higher spend on advantaged projects and turnaround activity decreased earnings by $130 million.

Other – All other items decreased earnings by $60 million.

Chemical Products Operational Results(thousands of metric tons)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Chemical Products sales (1)
United States1,7061,847
Non-U.S.3,0703,207
Worldwide4,7765,054
(1) Data reported net of purchases/sales contracts with the same counterparty.

SPECIALTY PRODUCTS

Specialty Products Financial Results(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Earnings (loss) (U.S. GAAP)
United States322404
Non-U.S.333357
Total655761
Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States322404
Non-U.S.333357
Total655761
(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Stronger margins increased earnings by $10 million.

Advantaged Volume – Earnings remained flat.

Base Volume – Lower base volumes decreased earnings by $30 million.

Structural Cost Savings – Increased earnings by $40 million.

Expenses – Higher expenses mainly related to new product development costs, decreased earnings by $70 million.

Other – All other items decreased earnings by $60 million, mainly driven by unfavorable forex effects.

Specialty Products Operational Results(thousands of metric tons)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Specialty Products sales (1)
United States473495
Non-U.S.1,4631,464
Worldwide1,9361,959
(1) Data reported net of purchases/sales contracts with the same counterparty.
Due to rounding, numbers presented may not add up precisely to the totals indicated.

CORPORATE AND FINANCING

Corporate and Financing Financial Results(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Earnings (loss) (U.S. GAAP)(798)(362)
Earnings (loss) excluding Identified Items (2) (Non-GAAP)(798)(362)
(2) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Corporate and Financing expenses were $798 million for the first quarter of 2025, $436 million higher than the first quarter of 2024, due to lower interest income, unfavorable foreign exchange effects and increased pension-related expenses.

LIQUIDITY AND CAPITAL RESOURCES

(millions of dollars)Three Months Ended March 31, 20252024
Net cash provided by/(used in)
Operating activities12,953
Investing activities(4,135)()
Financing activities(13,579)()
Effect of exchange rate changes86(324)
Increase/(decrease) in cash and cash equivalents(4,675)
Cash and cash equivalents (at end of period)18,51233,349
Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)12,95314,664
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments1,823703
Cash flow from operations and asset sales (Non-GAAP)14,77615,367
Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales in the first quarter of 2025 was $14.8 billion, a decrease of $0.6 billion from the comparable 2024 period primarily due to unfavorable working capital.

Cash provided by operating activities totaled $13.0 billion for the first three months of 2025, $1.7 billion lower than 2024. Net income including noncontrolling interests was $8.0 billion, a decrease of $0.5 billion from the prior year period. The adjustment for the noncash provision of $5.7 billion for depreciation and depletion was up $0.9 billion from 2024. Changes in operational working capital were a reduction of $0.9 billion during the period. All other items net increased cash flows by $96 million in 2025 versus a decrease of $0.7 billion in 2024. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first three months of 2025 used net cash of $4.1 billion, a decrease of $0.4 billion compared to the prior year. Spending for additions to property, plant and equipment of $5.9 billion was $0.8 billion higher than 2024. Proceeds from asset sales were $1.8 billion, an increase of $1.1 billion compared to the prior year. Net investments and advances decreased $0.1 billion from $0.2 billion in 2024.

Net cash used in financing activities was $13.6 billion in the first three months of 2025, including $4.8 billion for the purchase of 43.4 million shares of ExxonMobil stock, as part of the previously announced buyback program. This compares to net cash used in financing activities of $8.0 billion in the prior year. Total debt at the end of the first quarter of 2025 was $37.6 billion compared to $41.7 billion at year-end 2024. The Corporation's debt to total capital ratio was 12.2 percent at the end of the first quarter of 2025 compared to 13.4 percent at year-end 2024. The net debt to capital ratio (1) was 7.1 percent at the end of the first quarter, an increase of 0.6 percentage points from year-end 2024. The Corporation's capital allocation priorities are investing in competitively advantaged, high-return projects; maintaining a strong balance sheet; and sharing our success with our shareholders through more consistent share repurchases and a growing dividend. The Corporation distributed a total of $4.3 billion to shareholders in the first three months of 2025 through dividends.

The Corporation has access to significant capacity of long-term and short-term liquidity. Internally generated funds are expected to cover the majority of financial requirements, supplemented by long-term and short-term debt. The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.0 billion as of the end of first quarter 2025.

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating acquisitions include strategic fit, cost synergies, potential for future growth, low cost of supply, and attractive valuations. Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.

Litigation and other contingencies are discussed in Note3 to the unaudited condensed consolidated financial statements.

(1) Net debt is total debt of $37.6 billion less $17.0 billion of cash and cash equivalents excluding restricted cash . Net debt to capital ratio is net debt divided by net debt plus total equity of $269.8 billion. Total debt is the sum of notes and loans payable and long-term debt, as reported in the consolidated balance sheet.

TAXES

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Income taxes3,5673,803
Effective income tax rate34%36%
Total other taxes and duties (1)7,0667,160
Total10,63310,963
(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selling, general and administrative expenses”, each from the Consolidated Statement of Income.

Total taxes were $10.6 billion for the first quarter of 2025, a decrease of $0.3 billion from 2024. Income tax expense was $3.6 billion compared to $3.8 billion in the prior year. The effective income tax rate, which is calculated based on consolidated company income taxes and ExxonMobil's share of equity company income taxes, was 34 percent. This decreased from the 36 percent rate in the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties decreased by $0.1 billion to $7.1 billion.

CASH CAPITAL EXPENDITURES (Non-GAAP)

Cash capital expenditures (Cash Capex) is the sum of Additions to property, plant and equipment; Additional investments and advances; and Other investing activities including collection of advances; reduced by Inflows from noncontrolling interests for major projects, each from the Consolidated Statement of Cash Flows. This measure is useful for investors to understand the current period cash impact of investments in the business.

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Additions to property, plant and equipment5,8985,074
Additional investments and advances153421
Other investing activities including collection of advances(93)(215)
Inflows from noncontrolling interests for major projects(22)(12)
Total Cash Capex (Non-GAAP)5,9365,268

Cash capex in the first quarter of 2025 was $5.9 billion, up $0.7 billion from the first quarter of 2024.

(millions of dollars)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Upstream4,9934,105
Energy Products378517
Chemical Products291340
Specialty Products11080
Other164226
Total Cash Capex (Non-GAAP)5,9365,268

The Corporation plans to invest in the range of $27 billion to $29 billion in 2025. Actual spending could vary depending on the progress of individual projects and property acquisitions.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about market risks for the three months ended March 31, 2025, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2024.

ITEM 4. CONTROLS AND PROCEDURES

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, Chief Financial Officer and Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of March 31, 2025. Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ExxonMobil has elected to use a $1 million threshold for disclosing environmental proceedings.

As reported in the Corporation’s Form 10-K for the year ended December 31, 2024, in December 2024, XTO signed a consent decree with the Department of Justice to resolve alleged violations of the General Duty Clause of the Clean Air Act as it related to the Schnegg well in Powhatan Point, Ohio upon payment of an $8.0 million penalty. On March 11, 2025, the United States District Court for the Southern District of Ohio entered the consent decree, and XTO paid the civil penalty of $8.0 million.

As reported in the Corporation’s Form 10-K for the year ended December 31, 2024, on December 11, 2024, the Fifth Circuit affirmed the judgment of the United States District Court for the Southern District of Texas assessing a $14.25 million penalty against ExxonMobil related to alleged Clean Air Act and other violations at the Baytown complex. On March 11, 2025, ExxonMobil filed a petition for review with the U.S. Supreme Court.

Refer to the relevant portions of Note 3 of this Quarterly Report on Form 10-Q for further information on legal proceedings.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities for Quarter Ended March 31, 2025

View SEC source
Line itemTotal Numberof Shares Purchased (1)Average Price Paidper Share (2)Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (Billions of dollars) (4)
January 202514,679,994$109.2114,647,922$38.4
February 202513,848,302$109.8213,843,816$36.9
March 202514,929,749$112.5514,929,749$35.2
Total43,458,045$110.5543,421,487
(1) Includes shares withheld from participants in the Company's incentive program for personal income taxes.
(2) Excludes 1% U.S. excise tax on stock repurchases.
(3) Purchases were made under terms intended to qualify for exemption under Rules 10b-18 and 10b5-1.
(4) The Corporation continued its share repurchase program, originally initiated in 2022. In its 2024 Corporate Plan Update released December 11, 2024, the Corporation stated that it expects to continue its share repurchase program with a $20 billion repurchase pace per year through 2026, assuming reasonable market conditions.

During the first quarter, the Corporation did not issue or sell any unregistered equity securities.

ITEM 5. OTHER INFORMATION

During the three months ended March 31, 2025, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS

See Index to Exhibits of this report.

INDEX TO EXHIBITS

Exhibit Description

31.1 Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer. 31.2 Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Financial Officer. 31.3 Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer. 32.1 Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer. 32.2 Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Financial Officer. 32.3 Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer. (101) Interactive Data Files (formatted as Inline XBRL). (104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).