Exxon Mobil XOM Form 10-Q filing Q3 FY2025

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Income - Three and nine months ended September 30, 2025 and 2024 3

Condensed Consolidated Statement of Comprehensive Income - Three and nine months ended September 30, 2025 and 2024 4

Condensed Consolidated Balance Sheet - As of September 30, 2025 and December 31, 2024 5

Condensed Consolidated Statement of Cash Flows - Nine months ended September 30, 2025 and 2024 6

Condensed Consolidated Statement of Changes in Equity - Three months ended September 30, 2025 and 2024 7

Condensed Consolidated Statement of Changes in Equity - Nine months ended September 30, 2025 and 2024 8

Notes to Condensed Consolidated Financial Statements 9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Item 4. Controls and Procedures 39

PART II. OTHER INFORMATION

Item 1. Legal Proceedings 39

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Item 5. Other Information 39

Item 6. Exhibits 40

Signature 41

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENT OF INCOME

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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.

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

Note 2. Mergers and Acquisitions

During the third quarter of 2025, the Corporation completed $2.4 billion in acquisitions consisting primarily of proved and unproved acreage in the Permian basin. One of the acquisitions was partially funded by restricted cash as it qualified as a like-kind exchange. We accounted for these acquisitions as business combinations and allocated substantially all of their fair values to "Property, plant and equipment" on the Consolidated Balance Sheet. We did not recognize any goodwill associated with the acquisitions. Consideration paid was reflected in the Condensed Consolidated Statement of Cash Flows mainly in the line item “Additions to property, plant, and equipment”.

Pioneer Natural Resources Company

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 fair values of the assets acquired and liabilities assumed.

Debt Assumed in the Merger

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

Actual and Pro Forma Impact of Merger

The following table presents revenues and earnings included in the Consolidated Statement of Income for Pioneer since the acquisition date (May 3, 2024) through September 30, 2024:

The following table presents unaudited pro forma information for the Corporation as if the merger with Pioneer had occurred at the beginning of January 1, 2023:

The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the merger and factually supportable. The unaudited pro forma consolidated results are not necessarily indicative of what the consolidated results of operations actually would have been had the merger been completed on January 1, 2023. In addition, the unaudited pro forma consolidated results reflect pro forma adjustments primarily related to conforming Pioneer's accounting policies to ExxonMobil, additional depreciation expense related to the fair value adjustment of the acquired property, plant and equipment, our capital structure, Pioneer's transaction-related costs, and applicable income tax impacts of the pro forma adjustments.

Our transaction costs to effect the acquisition were immaterial.

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 September 30, 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.

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

Note 5. Earnings Per Share

Note 6. Pension and Other Postretirement Benefits

Note 7. Financial Instruments and Derivatives

The estimated fair value of financial instruments and derivatives at September 30, 2025 and December 31, 2024, and the related hierarchy level for the fair value measurement was as follows:

At September 30, 2025 and December 31, 2024, respectively, the Corporation had $836 million and $491 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 September 30, 2025, the Corporation has designated $3.5 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 $0.4 billion as of the end of third quarter 2025. On October 2, 2025, the Corporation established a 364-day revolving credit facility of $7.0 billion to provide short-term borrowing capacity for general corporate purposes.

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 September 30, 2025 and December 31, 2024, or results of operations for the periods ended September 30, 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 third 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 September 30, 2025 and December 31, 2024, was as follows:

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:

Note 8. Disclosures about Segments and Related Information

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.

Note 9. Divestment Activities

Through September 30, 2025, the Corporation realized proceeds of approximately $2.1 billion and net after-tax earnings of approximately $0.4 billion from its divestment activities. This included the sale of certain conventional and unconventional assets in the United States, 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 third quarter of 2025, the price of crude oil increased slightly relative to second quarter 2025, remaining near the middle of the 10-year historical range (2010-2019) supported by strong demand despite increased OPEC+ supply. Natural gas prices remained at the top of the 10-year range on robust global demand. Global industry refining margins moved toward the top of the 10-year historical range in the third quarter, impacted by industry supply outages coupled with strong demand. Chemical margins remained at bottom of cycle, well below the 10-year range, with continued industry oversupply.

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. Despite the current uncertainty 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 do not anticipate any material near-term financial impacts.

Selected Earnings Driver Definitions

The earnings drivers provide additional visibility into our business results. The Corporation 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 page23, 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.

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 $14.3 billion, which included an additional $2.2 billion in the first nine 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.

REVIEW OF THIRD QUARTER 2025 RESULTS

ExxonMobil’s third quarter 2025 earnings were $7.5 billion, compared to $8.6 billion a year earlier. The decrease in earnings was mainly driven by weaker crude prices, lower chemical margins, and higher expenses from growth initiatives; partly offset by stronger refining margins, increased volumes from advantaged Upstream investments in Guyana and the Permian, and Structural Cost Savings from base efficiencies and divestments. Cash capital expenditures were $8.6 billion, up $2.2 billion from third quarter 2024.

Earnings for the first nine months of 2025 were $22.3 billion, compared to $26.1 billion a year earlier. Cash capital expenditures were $20.9 billion, up $2.7 billion from the first nine months of 2024. The Corporation distributed $12.9 billion in dividends to shareholders and repurchased $14.9 billion of common stock.

UPSTREAM

Upstream Third Quarter Earnings Driver Analysis (millions of dollars)

Price – Price impacts decreased earnings by $1,510 million, mainly driven by lower liquids realizations.

Advantaged Volume Growth – Increased earnings by $630 million, mainly driven by Permian and Guyana growth.

Base Volume – Decreased earnings by $380 million as a result of non-strategic asset divestments.

Structural Cost Savings – Increased earnings by $330 million.

Expenses – Decreased earnings by $10 million.

Other – Increased earnings by $340 million, primarily driven by one-time tax items.

Timing Effects – Increased earnings by $120 million, mainly from the absence of unfavorable derivatives mark-to-market impacts.

Upstream Year-to-Date Earnings Driver Analysis (millions of dollars)

Price – Price impacts decreased earnings by $3,980 million, driven by lower liquids realizations on higher industry supply.

Advantaged Volume Growth – Increased earnings by $1,500 million, mainly driven by Permian and Guyana growth.

Base Volume – Decreased earnings by $450 million as a result of non-strategic asset divestments, partially offset by ramp-up of the Tengiz expansion.

Structural Cost Savings – Increased earnings by $960 million.

Expenses – Decreased earnings by $480 million, primarily from higher depreciation on the Tengiz expansion.

Other – Increased earnings by $850 million, driven by favorable foreign exchange effects and tax items.

Timing Effects – Increased earnings by $540 million from favorable derivatives mark-to-market impacts and the absence of unfavorable prior year impacts.

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 / 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 Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Increased earnings by $1,010 million from stronger industry refining margins driven by supply disruptions.

Advantaged Volume Growth – Increased earnings by $40 million.

Base Volume – Increased earnings by $40 million.

Structural Cost Savings – Increased earnings by $130 million.

Expenses – Decreased earnings by $220 million driven by growth projects.

Other – Decreased earnings by $20 million.

Timing Effects – Decreased earnings by $450 million, mainly from the absence of prior year favorable derivatives mark-to-market impacts.

Energy Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Decreased earnings by $90 million.

Advantaged Volume Growth – Increased earnings by $50 million.

Base Volume – Increased earnings by $240 million, mainly driven by lower scheduled maintenance and stronger reliability.

Structural Cost Savings – Increased earnings by $420 million.

Expenses – Decreased earnings by $230 million, primarily driven by growth projects, partially offset by lower scheduled maintenance.

Other – All other items, mainly driven by the absence of unfavorable inventory impacts, increased earnings by $160 million.

Timing Effects – Decreased earnings by $150 million, primarily from the absence of prior year favorable derivatives mark-to-market impacts.

CHEMICAL PRODUCTS

Chemical Products Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Weaker margins decreased earnings by $510 million on lower North America ethane feed advantage.

Advantaged Volume Growth – Increased earnings by $40 million.

Base Volume – Increased earnings by $80 million.

Structural Cost Savings – Increased earnings by $50 million.

Expenses – Decreased earnings by $80 million, driven by China Chemical Complex costs.

Other – Increased earnings by $40 million.

Chemical Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Weaker margins decreased earnings by $1,280 million, mainly on lower North America ethane feed advantage.

Advantaged Volume Growth – Record high-value product sales increased earnings by $100 million.

Base Volume – Decreased earnings by $60 million.

Structural Cost Savings – Increased earnings by $180 million.

Expenses – Higher expenses, including China Chemical Complex ramp-up, decreased earnings by $340 million.

Other – Increased earnings by $20 million.

SPECIALTY PRODUCTS

Specialty Products Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Weaker basestock margins, partially offset by stronger finished lubes margins, decreased earnings by $70 million.

Advantaged Volume – Increased earnings by $10 million.

Base Volume – Decreased earnings by $10 million.

Structural Cost Savings – Increased earnings by $30 million.

Expenses – Decreased earnings by $60 million.

Other – Increased earnings by $50 million.

Specialty Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Stronger finished lubes margins on lower feed costs increased earnings by $30 million.

Advantaged Volume Growth – Increased earnings by $30 million.

Base Volume – Decreased earnings by $30 million.

Structural Cost Savings – Increased earnings by $100 million.

Expenses – Higher expenses, including spending on carbon materials market development and ProxximaTM systems, decreased earnings by $190 million.

Other – Decreased earnings by $70 million on unfavorable foreign exchange impacts.

CORPORATE AND FINANCING

Corporate and Financing expenses were $1,226 million for the third quarter of 2025, $682 million higher than the third quarter of 2024, due to lower interest income and increased pension-related expenses, partially offset by favorable tax impacts.

Corporate and Financing expenses were $2,783 million for the first nine months of 2025, $1,567 million higher than 2024, due to lower interest income, unfavorable foreign exchange, and increased pension-related expenses, partially offset by favorable tax impacts.

LIQUIDITY AND CAPITAL RESOURCES

Cash flow from operations and asset sales in the third quarter of 2025 was $14.9 billion, a decrease of $2.8 billion from the comparable 2024 period.

Cash provided by operating activities totaled $39.3 billion for the first nine months of 2025, $3.5 billion lower than 2024. Net income including noncontrolling interests was $23.2 billion, a decrease of $4.0 billion from the prior year period. The adjustment for the noncash provision of $18.3 billion for depreciation and depletion was up $1.4 billion from 2024. Changes in operational working capital were a reduction of $5.0 billion during the period. All other items net increased cash flows by $2.9 billion in 2025 versus a decrease of $0.9 billion in 2024. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first nine months of 2025 used net cash of $18.8 billion, an increase of $3.1 billion compared to the prior year. Spending for additions to property, plant and equipment of $20.9 billion was $3.4 billion higher than 2024. Proceeds from asset sales were $2.1 billion, an increase of $0.4 billion compared to the prior year. Net investments and advances decreased $0.7 billion from $0.7 billion in 2024.

Net cash used in financing activities was $30.3 billion in the first nine months of 2025, including $14.9 billion for the purchase of 136 million shares of ExxonMobil stock, as part of the previously announced buyback program. This compares to net cash used in financing activities of $31.6 billion in the prior year. Total debt at the end of the third quarter of 2025 was $42.0 billion compared to $41.7 billion at year-end 2024. The Corporation's debt to total capital ratio was 13.5 percent at the end of the third quarter of 2025 compared to 13.4 percent at year-end 2024. The net debt to capital ratio (1) was 9.5 percent at the end of the third quarter, an increase of 3.0 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 $12.9 billion to shareholders in the first nine 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. Commercial paper is used to balance short-term liquidity requirements and is reflected in "Notes and loans payable" on the Consolidated Balance Sheet, with changes in outstanding commercial paper between periods included in the Consolidated Statement of Cash Flows. The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $0.4 billion as of the end of third quarter 2025. On October 2, 2025, the Corporation established a 364-day revolving credit facility of $7.0 billion to provide short-term borrowing capacity for general corporate purposes.

(1) Net debt is total debt of $42.0 billion less $13.8 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 $268.2 billion. Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet.

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.

Contractual Obligations

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. Through the third quarter of 2025, the Corporation entered into a long-term purchase agreement with an estimated total obligation of approximately $2.3 billion.

TAXES

Total taxes were $10.5 billion for the third quarter of 2025, a decrease of $1.2 billion from 2024. Income tax expense was $3.2 billion compared to $4.1 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 32 percent, lower than the prior year period due primarily to favorable one-time items. Total other taxes and duties decreased by $0.3 billion to $7.3 billion.

Total taxes were $31.7 billion for the first nine months of 2025, a decrease of $2.6 billion from 2024. Income tax expense decreased by $1.9 billion to $10.1 billion reflecting lower commodity prices. The effective income tax rate of 34 percent was down compared to the prior year period due primarily to favorable one-time items. Total other taxes and duties decreased by $0.7 billion to $21.6 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.

Cash capex in the third quarter of 2025 was $8.6 billion, up $2.2 billion from the third quarter of 2024.

The Corporation plans to invest slightly below the lower end of the $27 billion to $29 billion range in 2025, excluding acquisitions. Actual spending could vary depending on the progress of individual projects.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about market risks for the nine months ended September 30, 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 September 30, 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.

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

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

ITEM 5. OTHER INFORMATION

During the three months ended September 30, 2025, none of the Corporation’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

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). | * Filed herewith. | | | ** Furnished herewith. | |