EXXON MOBIL CORP (XOM)

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

RESULTS OF OPERATIONS

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

FORWARD-LOOKING STATEMENTS

Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives;

statements of future ambitions and plans; future earnings power; potential addressable markets; and other statements of future

events or conditions are forward-looking statements. Similarly, discussion of future plans related to carbon capture,

transportation and storage, lower-emission fuels, hydrogen and ammonia, direct air capture, ProxximaTM systems, carbon

materials, lithium, low-carbon data centers, and other future plans to reduce emissions and emission intensity of ExxonMobil,

its affiliates, and third parties are dependent on future market factors, such as continued technological progress, stable policy

support and timely rule-making and permitting, and represent forward-looking statements.

Actual future results, including financial and operating performance; potential earnings, cash flow, dividends or shareholder

returns, including the timing and amounts of share repurchases; total capital expenditures and mix, including allocations of

capital to low carbon and other new investments; realization and maintenance of structural cost reductions and efficiency gains,

including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity, including

ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in integrated

Upstream Permian Basin unconventional operated assets by 2035, to eliminate routine flaring in-line with World Bank Zero

Routine Flaring, to reach near-zero methane emissions from operated assets and other methane initiatives, and to meet

ExxonMobil’s emission reduction plans and goals, divestment and start-up plans, and associated project plans as well as

technology advances, including the timing and outcome of projects to capture, transport and store CO2, produce hydrogen and

ammonia, produce lower-emission fuels, produce ProxximaTM systems, produce carbon materials, produce lithium, and use

plastic waste as feedstock for advanced recycling; future debt levels and credit ratings; maintenance and turnaround activity;

drilling and improvement programs; product sales levels and mix; business and project plans, timing, costs, capacities and

profitability; resource recoveries and production rates; and planned Denbury and Pioneer integrated benefits, could differ

materially due to a number of factors.

These include global or regional changes or imbalances in the supply and demand for oil, natural gas, petrochemicals, and

feedstocks and other market factors; economic conditions and seasonal fluctuations that impact prices, differentials, margins,

and volume/mix for our products; developments or changes in local, national, or international laws, regulations, taxes, trade

sanctions, trade tariffs, or policies affecting our business, such as government policies supporting lower carbon and new market

investment opportunities, the punitive European taxes on the oil and gas sector and unequal support for different technological

methods of emissions reduction or evolving, ambiguous and unharmonized voluntary or mandatory standards or extraterritorial

laws and regulations imposed by various jurisdictions related to sustainability and greenhouse gas reporting; timely granting of

governmental permits, licenses, and certifications; uncertain impacts of deregulation on the legal and regulatory environment;

price impacts and the broader government responses to inflationary pressures; changes in interest and exchange rates; variable

impacts of trading activities and derivative positions, including timing effects, on our margins and results each quarter; actions

of co-venturers or partners, competitors and commercial counterparties, including suppliers and customers; government actions

in pursuit of national energy and security policies and priorities affecting our business; the outcome of commercial negotiations,

including final agreed terms and conditions; the outcome of competitive bidding and project awards; the ability to access debt

markets on favorable terms or at all; the occurrence, pace, rate of recovery and effects of public health crises; adoption of

regulatory incentives consistent with law; reservoir performance and optimization, including variability and timing factors

applicable to unconventional resources, the success of new unconventional and AI-enhanced technologies, and the ability of

new technologies to improve drilling performance and recovery relative to competitors; the level, outcome, and timing of

exploration and development projects and decisions to invest in future reserves and resources; timely completion of

construction projects and commencement of start-up operations, including reliance on third-party suppliers and service

providers; final management approval of future projects and any changes in the scope, terms, costs or assumptions of such

projects as approved; the actions of governments, non-governmental organizations, or other actors against our core business

activities and acquisitions, divestitures or financing opportunities; war, civil unrest, armed hostilities, attacks against the

company or industry, and other geopolitical or security disturbances, including disruption of land or sea transportation routes or

distribution or shipping channels; decoupling of economies; disruption, realignment, or breaking of current or historical trade or

military alliances or global trade and supply chain networks; escalating geopolitical volatility, including regime changes;

expropriations, seizure, or capacity, insurance, shipping, import or export limitations imposed directly or indirectly by

governments or laws; opportunities for potential acquisitions, investments or divestments and satisfaction of applicable

conditions to closing, including timely regulatory approvals; the capture of efficiencies within and between business lines and

the ability to maintain near-term cost reductions as ongoing efficiencies without impairing our competitive positioning;

unforeseen technical or operating disruptions or difficulties and unplanned maintenance; the development and competitiveness

of alternative energy and emission reduction technologies; consumer preferences including willingness and ability to pay for

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reduced emission products; the results of research programs and the ability to bring new technologies to commercial scale on a

cost-competitive basis; and other factors discussed under "Item 1A. Risk Factors" of ExxonMobil’s 2025 Form 10-K.

Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not an

indication that these statements are material to investors or require disclosure in our filing with the SEC or any other regulatory

authority. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be

based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and

assumptions that are subject to change in the future, including future rule-making.

Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium

term business plans, which are updated annually. The reference case for planning beyond 2030 is based on ExxonMobil’s

Global Outlook (Outlook) research and publication. The Outlook is reflective of the existing global policy environment and an

assumption of increasing policy stringency and technology improvement to 2050. Current trends for policy stringency and

development of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050. As such, the Outlook does not

project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to

meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and

ExxonMobil’s business plans will be updated accordingly. References to projects or opportunities may not reflect investment

decisions made by ExxonMobil or its affiliates. Individual projects or opportunities may advance based on a number of factors,

including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement,

insights from the Corporate planning process, and alignment with our partners and other stakeholders. Capital investment

guidance in lower-emission investments is based on our Corporate plan; however, actual investment levels will be subject to the

availability of the opportunity set and public policy support, and focused on returns.

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same

meaning as in any government payment transparency reports.

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Overview

Market conditions continued to be heavily influenced by supply disruptions in the Middle East and global refining capacity

reductions during the second quarter of 2026. Average crude oil prices remained within the 10-year historical range

(2010-2019) with reduced refining capacity and inventory releases. Natural gas prices remained elevated above the 10-year

average with ongoing supply disruptions. Global industry refining margins were sharply above the 10-year historical range due

to unprecedented global refining capacity reductions. Chemical margins improved but remained below the bottom of the 10-

year range with regional supply constraints impacting product availability, particularly in Asia.

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. Occasionally, additional granularity is provided to aid investors. For example, Middle East

volumes are presented separately in this filing.

•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. Occasionally,

additional granularity is provided to aid investors. For example, Middle East volumes are presented separately in this filing.

Structural Cost Savings. Represents after-tax earnings effects of Structural Cost Savings as defined on page 23, including cash

operating expenses related to divestments.

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

Estimated Timing Effects. Represe

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives; statements of future ambitions and plans; future earnings power; potential addressable markets; and other statements of future events or conditions are forward-looking statements. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, hydrogen and ammonia, lower-emission fuels, direct air capture, ProxximaTM resin systems, carbon materials, low-carbon data centers, lithium, and other future plans to reduce emissions and emissions intensity of ExxonMobil, its affiliates, and third parties are dependent on future market factors, such as continued technological progress, stable policy support, and timely rule-making and permitting, and represent forward-looking statements.

Actual future results, including financial and operating performance; potential earnings, cash flow, dividends or shareholder returns, including the timing and amounts of share repurchases; total capital expenditures and mix, including allocations of capital to low-carbon and other new investments; realization and maintenance of structural cost reductions and efficiency gains, including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity, including ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in integrated Upstream Permian Basin unconventional operated assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to reach near-zero methane emissions from operated assets and other methane initiatives, and to meet ExxonMobil’s emission reduction plans and goals, divestment and start-up plans, and associated project plans as well as technology advances, including the timing and outcome of projects to capture, transport and store CO2, produce hydrogen and ammonia, produce lower-emission fuels, produce ProxximaTM resin systems, produce carbon materials, produce lithium, and use plastic waste as feedstock for advanced recycling; future debt levels and credit ratings; business and project plans, timing, costs, capacities and profitability; resource recoveries and production rates; and planned Denbury and Pioneer integrated benefits, could differ materially due to a number of factors.

These include global or regional changes or imbalances in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors; economic conditions and seasonal fluctuations that impact prices, differentials, and volume/mix for our products; developments or changes in local, national, or international laws, regulations, taxes, trade sanctions, trade tariffs, or policies affecting our business, such as government policies supporting lower-carbon and new market investment opportunities, the punitive European taxes on the oil and gas sector and unequal support for different technological methods of emissions reduction or evolving, ambiguous, and unharmonized voluntary and mandatory standards or extraterritorial laws and regulations imposed by various jurisdictions related to sustainability and greenhouse gas reporting; timely granting of governmental permits, licenses, and certifications; uncertain impacts of deregulation on the legal and regulatory environment; changes in interest and exchange rates; variable impacts of trading activities on our margins and results each quarter; actions of co-venturers or partners, competitors, and commercial counterparties, including suppliers and customers; government actions in pursuit of national energy and security policies and priorities affecting our business; the outcome of commercial negotiations, including final agreed terms and conditions; the outcome of competitive bidding and project awards; the ability to access debt markets on favorable terms or at all; the occurrence, pace, rate of recovery and effects of public health crises; adoption of regulatory incentives consistent with law; reservoir performance and optimization, including variability and timing factors applicable to unconventional resources, the success of new unconventional technologies, and the ability of new technologies to improve recovery relative to competitors; the level, outcome, and timing of exploration and development projects and decisions to invest in future reserves and resources; timely completion of construction projects and commencement of start-up operations, including reliance on third-party suppliers and service providers; final management approval of future projects and any changes in the scope, terms, costs, or assumptions of such projects as approved; the actions of governments, non-governmental organizations, or other actors against our core business activities and acquisitions, divestitures or financing opportunities; war, civil unrest, armed hostilities, attacks against the Company or industry, and other geopolitical or security disturbances, including disruption of land or sea transportation routes or distribution or shipping channels; decoupling of economies, disruption, realignment, or breaking of current or historical trade or military alliances or global trade or supply chain networks; escalating geopolitical volatility, including regime changes; expropriations, seizures, or capacity, insurance, shipping, import or export limitations imposed directly or indirectly by governments or laws; opportunities for potential acquisitions, investments or divestments and satisfaction of applicable conditions to closing, including timely regulatory approvals; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies without impairing our competitive positioning; unforeseen technical or operating disruptions or difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; consumer preferences including willingness and ability to pay for reduced emission products; the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis; and other factors discussed under Item 1A.

Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in our filing with the SEC or any other regulatory authority. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Energy demand models are forward-looking by nature and aim to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario in this report, including any potential net-zero scenarios, does not imply ExxonMobil views any particular scenario as likely to occur. In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use by ExxonMobil is not an endorsement by ExxonMobil of their underlying assumptions, likelihood, or probability. Investment decisions are made on the basis of ExxonMobil’s separate planning process. Any use of the modeling of a third-party organization within this report does not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization.

Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on ExxonMobil’s Global Outlook (Outlook) research and publication. The Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. Current trends for policy stringency and development of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050. As such, the Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and ExxonMobil’s business plans will be updated accordingly. References to projects or opportunities may not reflect investment decisions made by ExxonMobil or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement, insights from the Corporate planning process, and alignment with our partners and other stakeholders. Capital investment guidance in lower-emission investments is based on our Corporate Plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, and focused on returns.

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

OVERVIEW

The following discussion and analysis of ExxonMobil’s financial results, as well as the accompanying financial statements and related notes to consolidated financial statements to which they refer, are the responsibility of the management of Exxon Mobil Corporation. The Corporation’s accounting and financial reporting fairly reflect its integrated business model involving exploration for, and production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen and ammonia, lower-emission fuels, ProxximaTM resin systems, carbon materials, low-carbon data centers, and lithium. ExxonMobil's reportable segments are Upstream, Energy Products, Chemical Products, and Specialty Products. Where applicable, ExxonMobil voluntarily discloses additional U.S., non-U.S., and regional splits to help investors better understand the Company's operations.

The Company is organized along three businesses – Upstream, Product Solutions, and Low Carbon Solutions, aligning along market-focused value chains. Product Solutions consists of Energy Products, Chemical Products, and Specialty Products. Low Carbon Solutions is included in Corporate and Financing as the business continues to mature through commercialization and deployment of technology. The businesses are supported by centralized service-delivery groups, including Global Projects, Technology and Engineering, Global Operations, Sustainability, Global Trading, Supply Chain, and Global Business Solutions.

ExxonMobil, with its resource base, financial strength, disciplined investment approach, and technology portfolio, is well-positioned to participate in substantial investments to develop new supplies of reliable and affordable lower-emission energy and other critical products. The Compan

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