XOM – Market expectations are for Uniform ROA to remain muted, but management is confident in their development projects, value chain investments, and asset sale program

• Exxon Mobil Corporation (XOM:USA) currently trades below UAFRS-based (Uniform) Assets, with a 0.9x Uniform P/B, implying bearish expectations for the firm. However, management is confident in their Liza Phase 2, Guyana, and Payara projects, their ability to make investments across the value chain, and their asset sale program
• Specifically, management is confident the larger Liza Phase 2 development is in the permitting phase and planned for a 2022 start-up, and that they are looking for the best way to incorporate results from the Guyana development plan. Moreover, they are confident that Payara production was within their expected production range. In addition, they are confident that they remain focused on improving their base business while making investments across the value chain, and that their asset sale program spans all regions. Furthermore, they are confident they will likely see derivative position gains if oil prices decline, and in their Singapore resid project FID.