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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to________

Commission File Number 1-2256

Exxon Mobil Corporation

(Exact name of registrant as specified in its charter)

New Jersey		13-5409005
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

		Name of Each Exchange
Title of Each Class	Trading Symbol	on Which Registered
Common Stock, without par value	XOM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class		Outstanding as of March 31, 2020
Common stock, without par value		4,228,211,252

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2020

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Condensed Consolidated Statement of Income Three months ended March 31, 2020 and 2019	3

Condensed Consolidated Statement of Comprehensive Income Three months ended March 31, 2020 and 2019	4

Condensed Consolidated Balance Sheet As of March 31, 2020 and December 31, 2019	5

Condensed Consolidated Statement of Cash Flows Three months ended March 31, 2020 and 2019	6

Condensed Consolidated Statement of Changes in Equity Three months ended March 31, 2020 and 2019	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	24

Item 4.Controls and Procedures	24


PART II. OTHER INFORMATION
Item 1.Legal Proceedings	25

Item 1A.Risk Factors	25

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 6.Exhibits	26

Index to Exhibits	27

Signature	28

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)

			Three Months Ended
			March 31,
			2020	2019
Revenues and other income
	Sales and other operating revenue		55,134	61,646
	Income from equity affiliates		775	1,709
	Other income		249	270
		Total revenues and other income	56,158	63,625
Costs and other deductions
	Crude oil and product purchases		32,083	34,801
	Production and manufacturing expenses		8,297	8,970
	Selling, general and administrative expenses		2,579	2,770
	Depreciation and depletion		5,819	4,571
	Exploration expenses, including dry holes		288	280
	Non-service pension and postretirement benefit expense		269	358
	Interest expense		249	181
	Other taxes and duties		6,832	7,405
		Total costs and other deductions	56,416	59,336
Income (Loss) before income taxes			(258)	4,289
	Income taxes		512	1,883
Net income (loss) including noncontrolling interests			(770)	2,406
	Net income (loss) attributable to noncontrolling interests		(160)	56
Net income (loss) attributable to ExxonMobil			(610)	2,350


Earnings (Loss) per common share (dollars)			(0.14)	0.55

Earnings (Loss) per common share - assuming dilution (dollars)			(0.14)	0.55

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)

					Three Months Ended
					March 31,
					2020	2019

	Net income (loss) including noncontrolling interests				(770)	2,406
	Other comprehensive income (loss) (net of income taxes)
		Foreign exchange translation adjustment			(5,649)	749
		Postretirement benefits reserves adjustment (excluding amortization)			87	(26)
		Amortization and settlement of postretirement benefits reserves adjustment
				included in net periodic benefit costs	204	185
			Total other comprehensive income (loss)		(5,358)	908
	Comprehensive income (loss) including noncontrolling interests				(6,128)	3,314
		Comprehensive income (loss) attributable to noncontrolling interests			(672)	182
	Comprehensive income (loss) attributable to ExxonMobil				(5,456)	3,132

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)

				Mar. 31,	Dec. 31,
				2020	2019
Assets
	Current assets
		Cash and cash equivalents		11,412	3,089
		Notes and accounts receivable – net		20,871	26,966
		Inventories
			Crude oil, products and merchandise	12,067	14,010
			Materials and supplies	4,434	4,518
		Other current assets		1,465	1,469
			Total current assets	50,249	50,052
	Investments, advances and long-term receivables			42,981	43,164
	Property, plant and equipment – net			248,409	253,018
	Other assets, including intangibles – net			14,165	16,363
			Total assets	355,804	362,597

Liabilities
	Current liabilities
		Notes and loans payable		27,755	20,578
		Accounts payable and accrued liabilities		35,815	41,831
		Income taxes payable		1,203	1,580
			Total current liabilities	64,773	63,989
	Long-term debt			31,857	26,342
	Postretirement benefits reserves			21,913	22,304
	Deferred income tax liabilities			24,863	25,620
	Long-term obligations to equity companies			4,024	3,988
	Other long-term obligations			19,631	21,416
			Total liabilities	167,061	163,659

Commitments and contingencies (Note 3)				-	-

Equity
	Common stock without par value
		(9,000 million shares authorized, 8,019 million shares issued)		15,636	15,637
	Earnings reinvested			416,919	421,341
	Accumulated other comprehensive income			(24,339)	(19,493)
	Common stock held in treasury
		(3,791 million shares at March 31, 2020 and
		3,785 million shares at December 31, 2019)		(226,137)	(225,835)
			ExxonMobil share of equity	182,079	191,650
	Noncontrolling interests			6,664	7,288
			Total equity	188,743	198,938
			Total liabilities and equity	355,804	362,597

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)

				Three Months Ended
				March 31,
				2020	2019
Cash flows from operating activities
	Net income (loss) including noncontrolling interests			(770)	2,406
	Depreciation and depletion			5,819	4,571
	Noncash inventory adjustment - lower of cost or market			2,245	-
	Changes in operational working capital, excluding cash and debt			(942)	2,257
	All other items – net			(78)	(896)
			Net cash provided by operating activities	6,274	8,338

Cash flows from investing activities
	Additions to property, plant and equipment			(5,945)	(5,199)
	Proceeds associated with sales of subsidiaries, property, plant and
		equipment, and sales and returns of investments		86	107
	Additional investments and advances			(728)	(910)
	Other investing activities including collection of advances			220	209
			Net cash used in investing activities	(6,367)	(5,793)

Cash flows from financing activities
	Additions to long-term debt			8,466	-
	Reductions in long-term debt			(2)	-
	Reductions in short-term debt			(1,533)	(3,777)
	Additions/(reductions) in commercial paper, and debt with three
		months or less maturity (1)		5,829	6,776
	Cash dividends to ExxonMobil shareholders			(3,719)	(3,505)
	Cash dividends to noncontrolling interests			(45)	(43)
	Changes in noncontrolling interests			94	(74)
	Common stock acquired			(305)	(421)
			Net cash used in financing activities	8,785	(1,044)
Effects of exchange rate changes on cash				(369)	43
Increase/(decrease) in cash and cash equivalents				8,323	1,544
Cash and cash equivalents at beginning of period				3,089	3,042
Cash and cash equivalents at end of period				11,412	4,586

Supplemental Disclosures
	Income taxes paid			1,372	1,793
	Cash interest paid
		Included in cash flows from operating activities		313	247
		Capitalized, included in cash flows from investing activities		155	175
		Total cash interest paid		468	422

(1) Includes a net addition of commercial paper with a maturity of over three months of $8.2 billion in 2020 and $5.3 billion in 2019. The gross amount of commercial paper with a maturity of over three months issued was $13.1 billion in 2020 and $6.4 billion in 2019, while the gross amount repaid was $4.9 billion in 2020 and $1.1 billion in 2019.

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

	EXXON MOBIL CORPORATION
	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	(millions of dollars)

			ExxonMobil Share of Equity
							Accumulated
								Other		Common
								Compre-		Stock		ExxonMobil		Non-
			Common		Earnings			hensive		Held in		Share of		controlling		Total
			Stock		Reinvested			Income		Treasury		Equity		Interests		Equity

Balance as of December 31, 2018				15,258		421,653			(19,564)		(225,553)		191,794		6,734		198,528
	Amortization of stock-based awards			223		-			-		-		223		-		223
	Other			(5)		-			-		-		(5)		9		4
	Net income (loss) for the period			-		2,350			-		-		2,350		56		2,406
	Dividends - common shares			-		(3,505)			-		-		(3,505)		(43)		(3,548)
	Other comprehensive income (loss)			-		-			782		-		782		126		908
	Acquisitions, at cost			-		-			-		(421)		(421)		(83)		(504)
	Dispositions			-		-			-		4		4		-		4
Balance as of March 31, 2019				15,476		420,498			(18,782)		(225,970)		191,222		6,799		198,021

Balance as of December 31, 2019				15,637		421,341			(19,493)		(225,835)		191,650		7,288		198,938
	Amortization of stock-based awards			181		-			-		-		181		-		181
	Other			(182)		-			-		-		(182)		157		(25)
	Net income (loss) for the period			-		(610)			-		-		(610)		(160)		(770)
	Dividends - common shares			-		(3,719)			-		-		(3,719)		(45)		(3,764)
	Cumulative effect of accounting
		change		-		(93)			-		-		(93)		(1)		(94)
	Other comprehensive income (loss)			-		-			(4,846)		-		(4,846)		(512)		(5,358)
	Acquisitions, at cost			-		-			-		(305)		(305)		(63)		(368)
	Dispositions			-		-			-		3		3		-		3
Balance as of March 31, 2020				15,636		416,919			(24,339)		(226,137)		182,079		6,664		188,743



			Three Months Ended March 31, 2020									Three Months Ended March 31, 2019
					Held in									Held in
	Common Stock Share Activity		Issued		Treasury			Outstanding				Issued		Treasury		Outstanding
			(millions of shares)									(millions of shares)

	Balance as of December 31			8,019		(3,785)			4,234				8,019		(3,782)		4,237
		Acquisitions		-		(6)			(6)				-		(6)		(6)
		Dispositions		-		-			-				-		-		-
	Balance as of March 31			8,019		(3,791)			4,228				8,019		(3,788)		4,231

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 2019 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. Prior data has been reclassified in certain cases to conform to the current presentation basis.

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

2. Miscellaneous Financial Information

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation’s results for the first quarter of 2020 include a before-tax charge of $2,777 million, included in “Crude oil and product purchases” on the Statement of Income, from writing down the book value of inventories to their market value at the end of the period. This adjustment, together with a similar adjustment for equity companies included in “Income from equity affiliates,” resulted in a $2,096 million after-tax charge to earnings (excluding noncontrolling interests) and will be re-evaluated at the end of each quarter in 2020. The earnings impact may be adjusted upward or downward this year based on prevailing market prices at the time of future evaluations. At year-end, any required adjustment is considered permanent and is incorporated into the LIFO carrying value of the inventory.

The COVID-19 pandemic resulted in substantial reductions in demand for crude oil, natural gas, and petroleum products. This reduction in demand led to sharp declines in industry prices and considerable volatility in financial markets during the quarter. Based on deteriorating industry conditions and a significant reduction in its market capitalization, the Corporation assessed its goodwill balances and certain asset groups for impairment and recognized after-tax impairment charges of $787 million. These charges included goodwill impairment of $562 million in Upstream, Downstream, and Chemical reporting units and other impairment charges of $225 million, mainly in the Upstream segment. For the goodwill impairment charges, the fair values of the impacted reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the quarter. For the other impairment charges, which mainly relate to the Corporation’s investment in an Upstream equity company, recent third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties were used to estimate fair value. The charges related to goodwill impairment are included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments are largely included in “Income from equity affiliates.”

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. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2020, 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. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

			As of March 31, 2020
			Equity	Other
			Company	Third Party
			Obligations (1)	Obligations	Total
			(millions of dollars)
Guarantees
	Debt-related		868	108	976
	Other		846	4,636	5,482
		Total	1,714	4,744	6,458

(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.

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

In accordance with a Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.

ExxonMobil collected awards of $908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID). An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project. ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.

4.Other Comprehensive Income Information

			Cumulative	Post-
			Foreign	retirement
			Exchange	Benefits
ExxonMobil Share of Accumulated Other			Translation	Reserves
Comprehensive Income			Adjustment	Adjustment	Total
		(millions of dollars)

Balance as of December 31, 2018			(13,881)	(5,683)	(19,564)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income		627	(23)	604
Amounts reclassified from accumulated other
	comprehensive income		-	178	178
Total change in accumulated other comprehensive income			627	155	782
Balance as of March 31, 2019			(13,254)	(5,528)	(18,782)

Balance as of December 31, 2019			(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income		(5,113)	72	(5,041)
Amounts reclassified from accumulated other
	comprehensive income		-	195	195
Total change in accumulated other comprehensive income			(5,113)	267	(4,846)
Balance as of March 31, 2020			(17,559)	(6,780)	(24,339)

Three Months Ended

Amounts Reclassified Out of Accumulated Other

March 31,

Comprehensive Income - Before-tax Income/(Expense)

2020

2019

(millions of dollars)

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)

(262)

(237)

		Three Months Ended
Income Tax (Expense)/Credit For		March 31,
Components of Other Comprehensive Income		2020	2019
		(millions of dollars)

Foreign exchange translation adjustment		7	-
Postretirement benefits reserves adjustment (excluding amortization)		(62)	10
Amortization and settlement of postretirement benefits reserves
	adjustment included in net periodic benefit costs	(58)	(52)
Total		(113)	(42)

5.Earnings Per Share

Three Months Ended

March 31,

2020