ExxonMobil Earns $20.8 Billion in 2018; $6 Billion in Fourth Quarter

Exxon
Mobil Corporation (NYSE:XOM):

Exxon Mobil Corporation today announced estimated 2018 earnings of
$20.8 billion, or $4.88 per share assuming dilution, compared with
$19.7 billion a year earlier. Excluding U.S. tax reform and asset
impairments, earnings were $21 billion, compared with $15.3 billion in
2017. Cash flow from operations and asset sales was $40.1 billion,
including proceeds associated with asset sales of $4.1 billion. Capital
and exploration expenditures were $25.9 billion, including incremental
spend to accelerate value capture.

Fourth quarter 2018 earnings were $6 billion, or $1.41 per share
assuming dilution, compared with $8.4 billion in the prior-year quarter.
Earnings excluding U.S. tax reform and impairments were $6.4 billion,
compared with $3.7 billion in the prior-year quarter.

“Strong results during a period of commodity price volatility
demonstrate ExxonMobil’s ability to deliver superior cash flow in
different market environments,” said Darren W. Woods, chairman and chief
executive officer. “Our continued focus on long-term fundamentals and
portfolio improvements position us well to grow shareholder value.
ExxonMobil’s 2018 results further demonstrate our advantages in
technology, scale and integration, providing a strong foundation to
successfully compete across commodity price cycles.”

Twelve Months 2018 Financial Updates

During 2018, Exxon Mobil Corporation purchased 5 million shares of its
common stock for the treasury at a gross cost of $425 million. These
shares were acquired to offset dilution in conjunction with the
company’s benefit plans and programs. The corporation will continue to
acquire shares to offset dilution in conjunction with its benefit plans
and programs, but does not currently plan on making purchases to reduce
shares outstanding.

ExxonMobil will discuss financial and operating results and other
matters during a webcast at 8:30 a.m. Central Time on February 1, 2019.
To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Cautionary Statement

Outlooks, projections, goals, targets, descriptions of business plans
and objectives, and other statements of future events or conditions in
this release are forward-looking statements. Actual future results,
including project plans, capacities, and timing; resource recoveries;
earnings, margins and volume growth and mix; and maintenance activities
could differ materially due to a number of factors. These include global
or regional changes in supply and demand for oil, gas, and
petrochemicals and other market conditions that impact prices and
differentials; reservoir performance; timely completion of new projects;
the impact of fiscal and commercial terms and the outcome of commercial
negotiations; changes in law, taxes, or government operations or
regulation and timely granting of governmental permits; war and other
political or security disturbances; the actions of competitors; the
capture of efficiencies between business lines; unforeseen technical or
operating difficulties; unexpected technological developments; general
economic conditions including the occurrence and duration of economic
recessions; the results of research programs; and other factors
discussed under the heading Factors Affecting Future Results on the
Investors page of our website at www.exxonmobil.com
and in Item 1A of ExxonMobil’s 2017 Form 10-K. We assume no duty to
update these statements as of any future date.

Forward-looking statements in this release regarding future earnings
refer to plans outlined at ExxonMobil’s Analysts’ Meeting held on March
7, 2018. The growth figures presented at that meeting are not forecasts
of actual future results but were intended to help quantify future
potential and goals of management plans and initiatives. See the
complete March 7, 2018 presentation available in archive form (including
the Cautionary Statement and Supplemental Information included with that
presentation) on the Investors page of our website at www.exxonmobil.com
for more detailed information. That material includes a description of
the assumptions underlying these potential growth estimates including a
flat real oil price of $60 per barrel, downstream and chemical margins
consistent with 2017 levels, and future gas prices consistent with our
internal company plans, as well as a reconciliation of adjusted 2017
earnings used as a baseline.

Frequently Used Terms and Non-GAAP Measures

This press release includes cash flow from operations and asset
sales. Because of the regular nature of our asset management and
divestment program, we believe it is useful for investors to consider
proceeds associated with the sales of subsidiaries, property, plant and
equipment, and sales and returns of investments together with cash
provided by operating activities when evaluating cash available for
investment in the business and financing activities. A reconciliation to
net cash provided by operating activities is shown for 2018 period on
page 8 and for 2018 and 2017 periods in Attachment IV.

This press release also includes total taxes including sales-based
taxes. This is a broader indicator of the total tax burden on the
corporation’s products and earnings, including certain sales and
value-added taxes imposed on and concurrent with revenue-producing
transactions with customers and collected on behalf of governmental
authorities (“sales-based taxes”). It combines “Income taxes” and “Total
other taxes and duties” with sales-based taxes, which are reported net
in the income statement. We believe it is useful for the corporation and
its investors to understand the total tax burden imposed on the
corporation’s products and earnings. A reconciliation to total taxes is
shown as part of the Estimated Key Financial and Operating Data in
Attachment I.

This press release also includes earnings excluding impacts from U.S.
tax reform enactment and asset impairments. We believe these figures are
useful for investors to consider in comparing the performance of our
underlying business across periods when one, or both, periods have been
impacted by the U.S. tax reform or an asset impairment charge. A
reconciliation of earnings excluding these items to U.S. GAAP earnings
is shown on page 4.

U.S. Tax Reform

Following the December 22, 2017, enactment of the U.S. Tax Cuts and
Jobs Act, in accordance with Accounting Standard Codification Topic 740
(Income Taxes) and following the guidance outlined in the SEC Staff
Accounting Bulletin No. 118, the corporation included a $5,942 million
credit in its 2017 results, representing a reasonable estimate of the
income tax effects of the changes in tax law and tax rate. The
corporation’s results for 2018 include a $291 million tax credit, mainly
in the Non-U.S. Upstream, reflecting an updated estimate of the impact
of U.S. tax reform including clarifications provided in proposed
transition tax regulations issued by the U.S. Treasury in 2018. The
corporation has completed its accounting for the enactment-date income
tax effects of the U.S. Tax Cuts and Jobs Act in accordance with
Accounting Standard Codification Topic 740 (Income Taxes).

Asset Impairments

In 2018, the corporation assessed the carrying values of certain
assets, largely located in North America and with limited development
potential. This review resulted in an after-tax impairment charge of
$429 million in the fourth quarter. In 2017, the corporation ceased
development planning activities for certain non-producing assets outside
the U.S. and recognized impairments for certain U.S. asset groups which
resulted in a fourth quarter 2017 after-tax charge of $1,294 million.

References to the resource base and other quantities of oil, natural
gas or condensate may include amounts that are not yet classified as
“proved reserves” under SEC definitions, but which we believe will
likely be moved into the “proved reserves” category and produced in the
future. The term “project” as used in this release can refer to a
variety of different activities and does not necessarily have the same
meaning as in any government payment transparency reports. Further
information on ExxonMobil’s frequently used financial and operating
measures and other terms including “Cash flow from operations and asset
sales”, and “Total taxes including sales-based taxes” is contained under
the heading “Frequently Used Terms” available through the “Investors”
section of our website at exxonmobil.com.

Reference to Earnings

References to corporate earnings mean net income attributable to
ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless
otherwise indicated, references to earnings, Upstream, Downstream,
Chemical and Corporate and financing segment earnings, and earnings per
share are ExxonMobil’s share after excluding amounts attributable to
noncontrolling interests.

EHC is a registered trademark of Exxon Mobil Corporation.

Exxon Mobil Corporation has numerous affiliates, many with names that
include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and
simplicity, those terms and terms such as corporation, company, our, we,
and its are sometimes used as abbreviated references to specific
affiliates or affiliate groups. Similarly, ExxonMobil has business
relationships with thousands of customers, suppliers, governments, and
others. For convenience and simplicity, words such as venture, joint
venture, partnership, co-venturer, and partner are used to indicate
business and other relationships involving common activities and
interests, and those words may not indicate precise legal relationships.

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