ExxonMobil to Triple Permian Production by 2025, Expand Transportation Infrastructure

• Company plans to invest more than $2 billion in terminal and
  transportation expansion
• Investments supported by changes to U.S. corporate tax rate
• Downstream and Chemical expansions progressing due to increased
  low-cost supply

IRVING, Texas–(BUSINESS WIRE)–ExxonMobil
today announced that it plans to triple total daily production to more
than 600,000 oil-equivalent barrels by 2025 from its operations in the
Permian Basin in West Texas and New Mexico. Tight oil production from
the Delaware and Midland basins will increase five-fold in the same
period.

Recent changes in the U.S. corporate tax rate create an environment for
increased future capital investments, including ExxonMobil’s plan to
spend more than $2 billion on transportation infrastructure to support
its Permian operations.

Through capital efficient production growth, the increased volumes will
be driven by reduced drilling costs, technology improvements and
expanded acreage. ExxonMobil has amassed a large, highly contiguous
acreage position, located in the prolific, multi-layered oil zones of
the Delaware and Midland basins. Combined with operating experience
gained through drilling more than 5,000 horizontal unconventional wells,
and a leading-edge technology organization, ExxonMobil has the ability
to efficiently and profitably develop this attractive resource.

ExxonMobil is one of the most active operators in the Permian Basin. To
help achieve this growth, the horizontal rig count in the Permian is
expected to increase a further 65 percent over the next several years.
ExxonMobil has doubled its footage drilled per day on horizontal wells
in the Permian since early 2014 and reduced per-foot drilling costs by
about 70 percent.

“Our geographic and competitive advantages in the Permian position the
company for strong growth and long-term value creation,” said Sara
Ortwein, president of ExxonMobil’s XTO Energy subsidiary. “We can
deliver profitable production at a range of prices, and we have
logistics and technology advantages over our competitors.”

Through its $6 billion Bass companies acquisition in 2017, ExxonMobil
added an estimated resource of 3.4 billion barrels of oil equivalent,
with upside potential in multiple additional prospective horizons. A
large majority of the development drill wells from the purchase are
projected to have attractive returns at oil prices below current levels.

“With this production growth, we are well positioned to maximize value
as increased supply moves from the Permian to our Gulf Coast refineries
and chemical facilities where higher-demand, higher-value products will
be manufactured,” Ortwein said.

The increased production will provide low-cost supply and feedstocks to
ExxonMobil downstream and chemical operations in Baytown, Beaumont and
Mt. Belvieu, Texas, and Baton Rouge, Louisiana. These facilities
manufacture high-value products, including polyethylene to meet growing
demand for high-performance plastics and advanced synthetic lubricant
base stock products.

As part of its Permian-focused infrastructure, ExxonMobil recently acquired
a crude oil terminal in Wink, Texas that is strategically positioned
to handle Permian crude oil and condensate from Delaware basin sources
near the Texas-New Mexico border for transport to Gulf Coast refineries
and marine export terminals.

The company plans to expand the Wink terminal and add key infrastructure
upgrades that will efficiently move ExxonMobil and third-party
production from the Delaware, Central and Midland basins in the Permian
to ExxonMobil’s operations and other market destinations in the Gulf
Coast region. Those investments, expected to exceed $2 billion, will
support short-term construction jobs and long-term positions.

ExxonMobil previously announced plans to build and expand manufacturing
facilities in the U.S. Gulf region as part of its Growing the Gulf
initiative.

Growing the Gulf projects include a new ethane steam cracker at the
company’s integrated Baytown facility that will provide ethylene
feedstock for two new high performance polyethylene units at the nearby
Mont Belvieu facility. A new production unit at the company’s
polyethylene plant in Beaumont will increase the plant’s capacity by 65
percent, and expansions at Baytown and Beaumont refineries will add more
than 300,000 barrels per day of light crude processing capacity.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement: Statements of future events or conditions
in this release are forward-looking statements. Actual future results,
including project plans, costs, and schedules; production rates and
capacities and resource recoveries; production and development costs;
efficiencies and impacts of technology; and future returns and economic
developments could differ materially due to changes in market conditions
affecting the oil, gas and petrochemical industries or long-term price
levels for oil, gas, refined products and petrochemicals; political and
regulatory developments including changes in environmental laws and
regulations; the ability to implement operating and management
improvements as planned; the actions of competitors; the occurrence and
duration of economic recessions; the outcome of commercial negotiations;
and other factors discussed in this release and under the heading
“Factors Affecting Future Results” on the Investors page of ExxonMobil’s
website at www.exxonmobil.com.
References to oil-equivalent barrels and similar terms in this release
include quantities of oil and gas that are not yet classified as proved
reserves under SEC definitions but that we believe will ultimately be
developed and produced. Forward-looking statements in this release are
based on management’s information and belief at the time of the release
and we assume no duty to update these statements as of any future date.
This release is not intended to override the corporate separateness of
various entities, including affiliated companies.

Contacts

ExxonMobil
Media Relations, 972-940-6007