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Nippon Steel Investment Would Generate Incremental Economic Impact of Nearly $1 Billion in Pennsylvania Beyond Base Investment

PITTSBURGH— United States Steel Corporation (NYSE: X) (“U. S. Steel”) released a new economic impact analysis today, conducted by Parker Strategy Group, that assesses how the proposed $1 billion investment committed by Nippon Steel Corporation (“Nippon Steel”) to modernize U. S. Steel’s Mon Valley Works following the closing of the pending merger with U. S. Steel would generate a significant economic impact in Pennsylvania.

For the purposes of the study, construction ($600 million) and equipment costs ($400 million) are separated and it is assumed that $600 million of the $1 billion investment would be spent in Pennsylvania.

Considering the supply chain and labor realities that would reduce in-state spending for any major construction project in the Mon Valley, the study looked at a range of spending scenarios.

According to the study, if just 80% of the $600 million construction project is spent in Pennsylvania, the Nippon Steel investment would generate a $952.9 million incremental economic impact over a two-year timeframe.

Nippon Steel is committed to investing no less than $1 billion in the Mon Valley Works operations following closing of the transaction to extend the production life of integrated assets and enhance the security of steel supply to American manufacturers. Together with the previously announced $1.4 billion capital expenditures in BLA-covered facilities, these investments are strong commitments to the region and union-represented facilities that go well beyond what is currently required by the Basic Labor Agreement.

Among the findings, the study showed concentrated economic impact to Southwest Pennsylvania and increased impact if construction dollars are spent in Pennsylvania.

“Not only will this deal secure U. S. Steel’s Pennsylvania footprint – an economic boon benefiting communities and employees – the Nippon Steel investment in Mon Valley Works facilities would cause a positive ripple effect across the Pennsylvania economy,” said President and Chief Executive Officer of U. S. Steel David B. Burritt. “While the economic impact is undeniable, what is most heartening is the consequential economic and generational impact this investment will have on the families and communities of the Mon Valley.”

The study predicts that when just 40% of the investment is spent in state it would create nearly 2,500 jobs and generate an almost half billion-dollar economic impact (2,432 jobs, $476.4 million total impact) over a two-year period.

When 80% of the project costs are spent in Pennsylvania, the impact increases dramatically doubling the number of jobs created (4,864 jobs) and generating almost $1 billion in economic impact ($952.9 million total impact) over a two-year period.

“The Nippon Steel investment makes possible a generational upgrade at the Mon Valley Works facilities that will only occur if the transaction closes,” said Scott Buckiso, Senior Vice President & Chief Manufacturing Officer, North American Flat-Rolled Segment. “With a new lease on life, these facilities would support and sustain jobs at U. S. Steel and across the region for small businesses that depend on our continued presence in the Mon Valley.”

A 2023 economic impact study showed that U. S. Steel’s operations in PA generated $3.6 billion in total economic impact, supported and sustained 11,417 jobs through its operations and purchases from the local supply chain, and generated $138.2 million in state and local taxes as a result of operations and capital spending.

About U. S. Steel
Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.

About Parker Strategy Group
With over 50 years of combined experience, Parker Strategy Group is a national consulting firm specializing in economic impact with extensive experience across the government, corporate, and non-profit sectors. We are committed to delivering statistically valid, industry-respected results that give organizations the confidence that their analysis is both defensible and actionable for internal and external audiences.

Led by Nichole Parker, a national economic impact expert with over 30 years of experience and more than 600 economic impact studies, Parker Strategy Group excels in producing economic analysis that is both defensible and easily understood. Nichole’s deep expertise as an economic analyst enables clients to confidently explain their impact to key audiences. Past and current clients include FGS Global, University of Washington, Penn State University, and the Association of Independent Colleges of Pennsylvania.

www.parkerstrategygroup.com

ExxonMobil and EV battery maker SK On sign MOU regarding U.S. produced Mobil™ Lithium

SPRING, Texas – ExxonMobil (NYSE: XOM) has signed a non-binding memorandum of understanding (MOU) with SK On, a global leading electric vehicle (EV) battery developer, that opens the door to secure a multiyear offtake agreement of up to 100,000 metric tons of MobilTM Lithium from the company’s first planned project in Arkansas. SK On plans to use the lithium in its EV battery manufacturing operations in the United States. This will contribute to ExxonMobil’s goal, announced in late 2023, of supplying lithium for about 1 million EV batteries annually by 2030 and support the build out of a U.S. EV supply chain.

Demand for lithium is forecasted to grow sharply in coming years, as it is an essential component for EVs, consumer electronics, energy storage systems, and other clean energy technologies. The planned project will extract lithium from underground saltwater deposits and convert it into battery-grade material onsite in Arkansas. This approach aims to produce lithium more efficiently and with fewer environmental impacts than traditional hard rock mining.

“The world needs more lithium to support its emissions goals, and we’re doing our part to drive solutions forward in the United States,” said Dan Ammann, President of ExxonMobil Low Carbon Solutions. “This collaboration with SK On demonstrates the leading role we play in the growing market for domestically sourced lithium, a market that’s advancing energy security and climate objectives, as well as supporting American manufacturing.”

Planned production of MobilTM Lithium will use ExxonMobil’s core capabilities in subsurface exploration, drilling, and chemical processing, offering U.S. EV battery manufacturers a more secure, lower-carbon lithium supply option. Through the appraisal drilling program and technology pilot using Direct Lithium Extraction (DLE) technology, ExxonMobil has successfully produced lithium carbonate from the Smackover formation in southern Arkansas.

In the U.S., SK On currently operates two battery plants in Commerce, Georgia, and is building four more plants through joint ventures with Ford Motor Co. and Hyundai Motor Group. After 2025, the annual production capacity of SK On in the U.S. alone is expected to reach more than 180 GWh, which is enough to power about 1.7 million EVs a year.

“SK On has been working with global partners to secure key battery raw materials in a move to support our growing U.S. manufacturing base and lead electrification in the region,” said Park Jong-jin, Executive Vice President of Strategic Procurement at SK On. “Through this partnership with ExxonMobil, we will continue strengthening battery supply chains in the U.S.”

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About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses – Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.

Toyota and Chevron Drive Progress with Renewable Gasoline Blend

Toyota Logistics Services at the Port of Portland recently received a special delivery from Chevron: 4,000 gallons of a renewable gasoline blend. Compared with traditional gasoline, it could reduce a vehicle’s lifecycle carbon dioxide emissions by more than 40%.

At the Port of Portland site, this renewable blend was put in an existing fuel storage tank. When a shipment of new vehicles came into port on April 11, Toyota used this renewable fuel blend to provide a “first fill,” or the first few gallons used to transport new vehicles to dealers.

Behind the Blend
Creating a renewable gasoline blend is both an art and a science. Izadyar Dalvand, an engine laboratory operations supervisor at the Chevron Richmond Engine Laboratory, was an integral part of the team that developed this new product, which contains more than 50% renewable content.

“It’s great to be involved in creating a totally new renewable gasoline blend, and to see it used in vehicles,” Dalvand said.

On the Road
Dalvand’s team played a key role in creating a gasoline blend that delivers performance while lowering carbon intensity.

Although it’s not yet available for widespread consumer purchase, Chevron demonstrated its renewable gasoline blend on a 1,000-mile road trip in July 2023. The blend fueled three Toyota vehicles—a Camry, a RAV4 and a Tundra—that traveled across parts of the southeastern U.S. in a variety of weather and terrain conditions.

The recent delivery to Toyota’s operations facility is the next step toward making this fuel available to drivers.

“It took two years and several teams coming together to make this happen. It was the lab’s largest delivery of our renewable gasoline blend.”
Izadyar Dalvand engine – laboratory operations supervisor

What’s Next
A vehicle sold today could still be on the road in the 2040s. Renewable blends like this one are compatible with existing cars, could provide performance similar to that of traditional fuels, and help support a lower carbon intensity future.

Chevron’s Andy Walz, president of Chevron Americas Products, recently spoke about the need for supportive, well-designed policies that will help scale production of renewable fuels so they can be offered to consumers and lower the carbon intensity of driving existing cars.

To learn more about how Chevron and Toyota are working together to lower carbon intensity, watch Driving Decarbonization in America—their partnership is featured in the second episode, which airs July 19. The series is available to stream free for a limited time on Discover Go.

Pocatello Celebrates Milestone in Portneuf River Revitalization

Pocatello, Idaho, is advancing a project to revitalize the city’s Portneuf River corridor through enhancements that will promote ecosystem health and water recreation.rnThe city recently completed additional public access points and has plans for riverfront parks, hike-and-bike trails, and streambank restoration to aid water quality.rnstrong>Marathon Petroleum’s midstream segment, MPLX, provided a $20,000 grant and employee volunteer support to help complete the newest access points.rnrnThe Portneuf River flows for 111 miles through southeastern Idaho and Pocatello, which is celebrating further progress toward revitalizing the river corridor to benefit the environment, wildlife and residents. The City of Pocatello recently marked the completion of its eighth river access point, expanding opportunities for public recreation that previously haven’t been available.rnrn“All the access points include parking areas and concrete planks for launching kayaks, canoes, paddleboards and tubes,” said the City of Pocatello’s Science & Environment Administrator Hannah Sanger. “The community has been super excited and has been getting out on the water more and more.”rnrnThe public access points are the first completed elements of a comprehensive revitalization plan that resulted from a 2016 river vision study. It incorporated input from thousands of residents whose top priorities were creating recreational access and strengthening the health of the river’s ecosystem. Over the next several years, other planned improvements include riverfront parks, hike-and-bike trails, wetland development and streambank restoration to enhance the quality and quantity of water flowing into the river from upstream tributaries.rnrnAlong with federal funding and other public resources, support has come from companies with ties to the region such as Marathon Petroleum’s midstream segment, MPLX. A $20,000 MPLX grant helped purchase materials for constructing the river access points, and MPLX employees joined other community volunteers to build fencing around parking areas at access points.rnrnMPLX employee volunteers helped build fencing around parking areas that are part of the new public access points along the Portneuf River. rnrn“With our operations around Pocatello and across Idaho, many of our employees feel a connection to this project and can understand the tremendous benefits it will bring to the environment and quality of life in the area,” said MPLX Senior Stakeholder Engagement Representative Dean Adam. “In a state that’s linked to the outdoors as strongly as Idaho, we are proud to help advance this initiative.” rnrnWhile community interest in restoring the river launched the revitalization effort, Sanger noted that continuing the public-private collaboration that has developed will be necessary to move it across the finish line. rnrn“This is crucial to the success of the project. Otherwise, we just couldn’t fund it,” Sanger said. rnrn

Phillips 66 Announces Sale of 25% Equity Interest in Rockies Express Pipeline to Tallgrass Energy Subsidiary

HOUSTON — Phillips 66 (NYSE: PSX) announced today it has agreed to sell its 25% non-operated common equity interest in Rockies Express Pipeline LLC (REX) to a subsidiary of Tallgrass Energy, LP (TGE) for an enterprise value of approximately $1.275 billion. TGE is the operator of REX and will own 100% of the common equity interest in REX following the transaction. This transaction generates pre-tax cash proceeds of $685 million to Phillips 66 after adjustments for Phillips 66’s allocation of REX’s debt and preferred equity balances.

“This sale is an important step in our commitment to deliver over $3 billion in asset divestitures,” said Mark Lashier, Chairman and CEO of Phillips 66. “We are committed to managing our portfolio and monetizing assets that no longer fit our long-term strategy.”

The expected proceeds will support Phillips 66’s strategic priorities, including returns to shareholders.

REX, a 1,714-mile pipeline system, is one of the largest natural gas pipelines in the United States and provides over 5 billion cubic feet per day of bi-directional natural gas transportation service between the Rockies, Appalachia and the northeastern United States.

The transaction is expected to close today.

About Phillips 66
Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.

ExxonMobil elects Maria Jelescu Dreyfus to Board of Directors

Spring, Texas – Exxon Mobil Corporation (NYSE: XOM) announced today that Maria Jelescu Dreyfus has joined its board of directors, effective May 3, 2024. Ms. Dreyfus is CEO and founder of Ardinall Investment Management, an investment firm focused on sustainable investing and resilient infrastructure.
“With the close of our Pioneer merger, we gained a premier, tier-one Permian asset, exceptional talent and a new Board member who brings keen strategic insight,” said ExxonMobil Chairman and CEO Darren Woods. “Our boardroom, shareholders and stakeholders will greatly benefit from Maria’s experience.”

“We welcome Maria to the ExxonMobil Board as the company executes its strategy to grow shareholder value by playing a critical role in a lower-emissions future, even as we continue to provide the reliable energy and products the world needs,” said Joseph Hooley, lead independent director for Exxon Mobil Corporation. “Her deep financial background combined with her extensive work in sustainability will complement our Board’s existing skillset.”

Prior to forming Ardinall in 2017, Ms. Dreyfus spent 15 years at Goldman Sachs, where she was a portfolio manager and Managing Director in the Goldman Sachs Investment Partners Group focusing on energy, industrials, transportation and infrastructure investments across the capital structure, in both public and private markets.

Ms. Dreyfus currently serves as a director on the board of Cadiz Inc. (NASDAQ: CDZI) and on the board of CDPQ, one of Canada’s largest pension plans. She also serves as a director on several private companies’ boards in the energy transition space.

She is Vice-Chair of the advisory board of Columbia University’s Center on Global Energy Policy, and serves as Co-Chair of its Women in Energy program. Additionally, Ms. Dreyfus is a member of the MIT Corporation’s Development Committee and serves on the MIT Economics Department’s Visiting Committee. Her current nonprofit board memberships include the Global CCS Foundation, New America Alliance, and Girls Inc. of NYC.

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About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

Baker Hughes Tapped Zero-carbon Sources for Nearly One-third of Electricity Use in 2023, Reduced Emissions 28.3% from Baseline

HOUSTON and LONDON – Baker Hughes (NASDAQ: BKR), an energy technology company, released its 2023 corporate sustainability report Wednesday, outlining progress in advancing sustainability through improved performance in its environmental, social and governance (ESG) metrics. Specifically, the Company reported a reduction of Scope 1 and 2 emissions by 28.3% from its baseline in absolute emissions.

“We are driving transformative and meaningful change to address the urgency and scale required for a sustainable energy development that balances the needs of today, with the needs of the future,” Baker Hughes Chairman and CEO Lorenzo Simonelli said. “That change starts with us, and I am proud of our progress in 2023. By leveraging sustainable practices, we have reduced carbon intensity of our operations, while enabling our customers and partners to meet their sustainability goals using our low-carbon and new energy solutions. Sustainability is a key differentiating capability for Baker Hughes and remains critical to our purpose of taking energy forward.”

“At Baker Hughes, sustainability is directly tied to our corporate strategy and creates long-term value through improved ESG performance and better resilience against climate risks. Through our sustainability strategy – executed across our corporate framework of people, planet, and principles – we have continued to operationalize sustainability, turning our net-zero ambitions into actions,” said Baker Hughes Chief Sustainability Officer Allyson Anderson Book. “Our people remain central contributors to taking energy forward, and I am particularly excited about our employee-driven initiatives like Carbon Out through which we are empowering our 58,000 employees to advance sustainability.”

Key highlights of Baker Hughes’ sustainability performance in 2023 include:
Absolute emissions reduction of 28.3% in Scope 1 and Scope 2 greenhouse gas emissions compared to 2019 baseline year: In 2023, Baker Hughes achieved Scope 1 and 2 emissions reductions through operational efficiency, energy efficiency initiatives, fleet electrification, and increased electricity from renewable and zero-carbon sources. Additionally, 29.8% of its electricity came from zero-carbon sources.

Quantified emissions footprint of its products: The Company advanced its emissions reductions journey by quantifying emissions throughout lifecycle stages of its products and incorporating the data into product development process. It reported completing over 300 life cycle assessments – over a 600% increase from last year – which allows for a transparent and granular view on carbon emissions of its products.

Scope 3 emissions roadmap: In 2023, Baker Hughes committed to an internal Scope 3 goal and created an emissions reductions roadmap to identify strategic levers to accelerate Scope 3 emissions reductions across all categories. Through its Carbon Out program – a unique, internal company-wide initiative to take carbon out of its operations – the Company has focused on categories with highest emissions footprints and is providing tools, training, and resources for employees to drive down Scope 3 emissions.

Improvement in Diversity, Equity, and Inclusion (DEI) performance: The Company has released its annual DEI report concurrently, which highlights progress in each of its five DEI strategic goals of diverse workforce, inclusive culture, supplier diversity, customer relationships, and community partnerships. In 2023, women employees increased by 0.4% (year on year) to 19.5%, women in STEM background increased by 2.1% to 14.2% and people of color in representation increased by 2.2% to 38.3%.

Increased community volunteerism: In 2023, our global employees volunteered in their communities across multiple geographies, resulting in a 43.7% increase in total volunteer service hours to 39,064. Our total community in-kind and cash contributions totaled $64 million.Employees’ health and safety are a top priority: Baker Hughes is committed to upholding the highest standards of health, safety, and environment (HSE). In 2023, the company reported a 34.5% increase in HSE observations compared to last year, with average hours of HSE training for employees increased by 16.2%.

As one of the first companies in its industry to make a public commitment to reduce our operational emissions by 50% by 2030 and achieve net-zero by 2050, Baker Hughes is on track to achieve its goals and remains transparent in its reporting with two separate reviews of its annual sustainability report – internal audit as well as an independent accounting firm.

Baker Hughes’ corporate sustainability report is prepared using the Global Reporting Initiative (GRI) standards and the Greenhouse Gas Protocol (GHG) as the foundation of our report. The Company also provides reporting indices for the Task Force on Climate-related Financial Disclosures (TCFD) and Sustainable Accounting Standards Board (SASB). Baker Hughes is also a participant of the UN Global Compact Initiative – a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices.

About Baker Hughes:
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner, and more efficient for people and the planet. Visit us at bakerhughes.com.

ConocoPhillips To Acquire Marathon Oil Corporation In All-stock Transaction; Provides Shareholder Distribution Update

HOUSTON – ConocoPhillips (NYSE: COP) and Marathon Oil Corporation (NYSE: MRO) announced today that they have entered into a definitive agreement pursuant to which ConocoPhillips will acquire Marathon Oil in an all-stock transaction with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt. Under the terms of the agreement, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “Importantly, we share similar values and cultures with a focus on operating safely and responsibly to create long-term value for our shareholders. The transaction is immediately accretive to earnings, cash flows and distributions per share, and we see significant synergy potential.”

“This is a proud moment to look back on what we achieved at Marathon Oil. Powered by our dedicated employees and contractors, we built a top performing portfolio with a multi-year track record of peer-leading operational execution, strong financial results and compelling return of capital to our shareholders – all while holding true to our core values of safety and environmental excellence. ConocoPhillips is the right home to build on that legacy, offering a truly unique combination of added scale, resilience and long-term durability. With its premier global asset base, strong balance sheet and laser focus on operational excellence, ConocoPhillips’ track record of long-term investments, differentiated shareholder distributions and active portfolio management are unmatched. When combined with the global ConocoPhillips portfolio, I’m confident our assets and people will deliver significant shareholder value over the long term,” said Lee Tillman, Marathon Oil chairman, president and chief executive officer.

Transaction benefits
Immediately accretive: This acquisition is immediately accretive to ConocoPhillips on earnings, cash from operations, free cash flow and return of capital per share to shareholders.
Delivers significant cost and capital synergies: Given the adjacent nature of the acquired assets and a common operating philosophy, ConocoPhillips expects to achieve the full $500 million of cost and capital synergy run rate within the first full year following the closing of the transaction. The identified savings will come from reduced general and administrative costs, lower operating costs and improved capital efficiencies.
Further enhances premier Lower 48 portfolio: This acquisition will add highly complementary acreage to ConocoPhillips’ existing U.S. onshore portfolio, adding over 2 billion barrels of resource with an estimated average point forward cost of supply of less than $30 per barrel WTI.
Return of capital update

Independent of the transaction, ConocoPhillips expects to increase its ordinary base dividend by 34% to 78 cents per share starting in the fourth quarter of 2024. Upon closing of the transaction and assuming recent commodity prices, ConocoPhillips plans to:

Repurchase over $7 billion in shares in the first full year, up from over $5 billion standalone.
Repurchase over $20 billion in shares in the first three years.
“We remain committed to our differentiated cash from operations distribution framework of returning greater than 30% to our shareholders, with a track record of returning over 40% since our 2016 strategy reset,” added Lance. “We plan to raise our ordinary dividend by 34% in the fourth quarter and we will continue to target top-quartile dividend growth relative to the S&P 500 going forward. Additionally, we intend to prioritize share repurchases following the close of the transaction, with a plan to retire the equivalent amount of newly issued equity in the transaction in two to three years at recent commodity prices.”

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About ConocoPhillips
ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $95 billion of total assets, and approximately 10,000 employees at March 31, 2024. Production averaged 1,902 MBOED for the three months ended March 31, 2024, and proved reserves were 6.8 BBOE as of Dec. 31, 2023. For more information, go to www.conocophillips.com.

About Marathon Oil
Marathon Oil (NYSE: MRO) is an independent oil and gas exploration and production (E&P) company focused on four of the most competitive resource plays in the U.S. – Eagle Ford, Texas; Bakken, North Dakota; Permian in New Mexico and Texas, and STACK and SCOOP in Oklahoma, complemented by a world-class integrated gas business in Equatorial Guinea. The Company’s Framework for Success is founded in a strong balance sheet, ESG excellence and the competitive advantages of a high-quality multi-basin portfolio. For more information, please visit www.marathonoil.com.

Chevron Pipe Line Company and American Aerospace Technologies to Fly Unmanned Aircraft in San Joaquin Valley

Houston, TX – Chevron Pipe Line Company (CPL), a subsidiary of Chevron Corporation, and American Aerospace Technologies, Inc. (AATI) received a first-of-its-kind waiver from the U.S. Federal Aviation Administration (FAA) to conduct unmanned aircraft surveillance in the San Joaquin Valley. The AiRanger Unmanned Aircraft System (UAS) was designed by AATI a leader in intelligent airborne sensing and surveillance services for energy and other critical infrastructure to support Beyond Visual Line of Sight (BVLOS) aerial surveillance for Chevron’s pipeline and production facilities.

The Detect and Avoid (DAA) system’s capabilities were demonstrated during flight operations in Buttonwillow, California, in October 2023. Following the demonstration and FAA observed testing, the Agency issued a 91.113 Waiver and granted a 44807 Exemption (“Waiver and Exemption”). The Waiver and Exemption authorizes AATI to utilize the onboard detect and avoid system to comply with aircraft right of way rules when operating BVLOS. The AiRanger is the first UAS to demonstrate compliance with industry consensus standards for the DAA system and reach this milestone.

“CPL and AATI have been on a journey since 2019 to develop an aerial patrol solution with technology that advances safe, reliable, and cost-effective routine facility inspections and pipeline system surveillance,” said Stephanie Beveridge, president of CPL. “Through collaboration with the FAA, we are working to do just that in the San Joaquin Valley.”

The AiRanger UAS is a fixed-wing, unmanned aircraft system capable of long-range operations beyond visual line of sight. The aircraft weighs 220 pounds with a wingspan of about 18 feet and can fly over 700 miles and up to 17 hours at up to 17,000 feet.

“For the first time, an unmanned aircraft weighing more than 55 pounds that flies above 400 feet and beyond visual line of sight has been approved for commercial operations in the U.S. This initial Waiver and Exemption spans over 4,000 square miles at up to 8,000 feet MSL, opening a new era in unmanned aviation in the National Airspace System,” said David Yoel, CEO of American Aerospace Technology, Inc. “The AiRanger is a new type of platform due to its large scale and the range of operations it enables. Its intelligent sensors and real-time communications deliver actionable data at a scale that was previously unimaginable. With safety as our guiding principle, we look forward to expanding AiRanger operations across the country.”

“CPL operates approximately 3,000 miles of regulated pipelines nationwide. The AiRanger UAS beyond visual line of sight operations will help transform routine oil and gas pipeline surveillance and inspections required by the Department of Transportation’s Pipeline and Hazardous Materials Safety Agency (PHMSA) using automated intelligence solutions,” said Roy Martinez, project manager for the UAS initiative and digital advisor for operations in CPL. “CPL’s coordinated efforts with the FAA and AATI to deploy this program is just one example of how Chevron continues to work with federal agencies to explore and implement emerging technologies to further Chevron’s purpose of developing the affordable, reliable, ever-cleaner energy that enables human progress.”

CPL and AATI have been supported by End State Solutions, LLC, to build collaborative solutions with key regulatory agencies that enable safe operations for emerging technology and new uses for autonomous aerospace technology.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

About American Aerospace Technologies, Inc.
Founded in 2002, AATI is a leader in intelligent airborne sensing and surveillance services for energy and other critical infrastructure. We deliver services with conventional aircraft, drones, and medium-altitude, long-endurance unmanned aircraft. AATI has been flying long-endurance UAS Beyond Visual Line of Sight (BVLOS) in the national airspace system since 2010.

About End State Solutions, LLC
End State Solutions LLC is focused on civil certification and approvals with deep expertise in aerospace certification and operations. The End State Solutions team has contributed to multiple industry achievements in autonomous aerospace and emerging aviation technology. As the pace of innovation in autonomy picks up, we continue to move the needle in meaningful ways for industry and regulators around the globe.

BP Acquires Freehold of One of Europe’s Largest Truck Stops, Unveiling Ambitious Plans to Help Heavy Goods Vehicles (HGVs) Electrify

BP Pulse, BP’s electric vehicle charging brand, has acquired the freehold of one of the largest truck stops in Europe, Ashford International Truckstop in Kent, as part of its drive to support HGV fleets as they electrify.

Strategically located off junction 10 and 10a of the M20, Ashford International Truckstop is close to Dover, the UK’s busiest ferry port, and LeShuttle Freight via the Eurotunnel terminal in Folkestone. Approximately 3.5 million heavy goods vehicles (HGVs) travel across the channel via the port of Dover and Eurotunnel each year. The acquisition presents bp with the opportunity to help meet the comprehensive needs of UK and European HGV operators transitioning to EVs.

The site has the capacity to host approximately 20 mega-watt chargers (MCS), 10 x 400kW and 125 x 100 kW chargers. This capacity is subject to power connection availability and the pace of electrification in the UK and European road freight sector. It could enable bp pulse to install a range of charging options suitable for both on-the-go and overnight HGVs.

“For fleet operators to consider going electric, they must be confident that the infrastructure is in place to support them. That is why we are thrilled to have secured the land to a crucial site near Dover as we strive to meet the evolving needs of HGV operators transitioning to EVs.”

Stefan von Dobschuetz, general manager, bp pulse Europer

The first mega-watt chargers are expected to be in place from 2026. A mega-watt charger has the potential to fully charge an HGV in up to 45 minutes, enabling an onward range of ~310 miles (500km) in a single charge1, depending on EV model, battery, the weather and driving conditions.

Stefan von Dobschuetz, general manager bp pulse Europe, said: “For fleet operators to consider going electric, they must be confident that the infrastructure is in place to support them. That is why we are thrilled to have secured the land to a crucial site near Dover as we strive to meet the evolving needs of HGV operators transitioning to EVs. The location of this truck stop aligns with our mission to provide accessible and strategically positioned charging infrastructure for our customers along the major truck corridors in Europe.

“Now we need to unlock the EV charging potential at this site. We look forward to working with national energy infrastructure partners to facilitate timely power connections for our ambitious project.”

Ashford International Truckstop is currently owned by the GSE Group. The 21-acre site already offers 660 secure parking bays and convenience services for HGV drivers. As part of the agreement, bp pulse will lease back the site to Ashford International Truckstop Ltd, part of GSE Group, to operate the existing site facilities and secure parking on a long-term lease. bp pulse will operate and manage the EV charging infrastructure.

Darrell Healey, chairman of GSE Group, said: “We know the industry, including many of our clients, want to go electric. They will need convenient and quick charging infrastructure in the right locations, which is why the combination of the truck stop at Ashford and bp pulse works so well.

“Our knowledge and experience of operating arguably the best truck stop in the UK, combined with bp pulse’s capabilities in building the EV-charging infrastructure required by our existing and future customers, is a perfect partnership. We’re looking forward to seeing our site evolve and serve such E-trucks and to continue to explore other potential truck stop projects in the UK.”

bp aims to create a network of mobility hubs along key logistics corridors across UK and Europe, providing freight operators with a range of energy options, including traditional fuels to support its fleet customers at every stage of their decarbonization journey.

Already in action, bp is supporting the decarbonization of road transportation.

“bp fleet solutions provide innovative energy and mobility solutions to help fleets of all shapes and sizes decarbonise, today, tomorrow, together. Across Europe, we support 1.8 million fleet drivers providing fuels, charging and convenience offers across key logistics routes. This acquisition will be a great addition to our offering,” said Alex Eftimiu, vice president Fleet Europe, bp.

In January 2023, bp launched Europe’s first truck-charging corridor along a 600km stretch of the Rhine-Alpine corridor across Germany. 21 Aral pulse (bp’s brand in Germany) EV truck stops are already operational in Germany enabling an electric truck to cover over 750km across multiple routes throughout Germany. Once the EV chargers are installed on the acquired site, bp pulse is set to establish a link between the UK and its German charging corridor to further encourage HGV operators to shift to electric.

The acquisition is a tangible illustration of bp’s strategy to increase investment in the transition to lower carbon energy while also keeping oil and gas flowing where it’s needed today. EV charging is just one of bp’s five ‘transition growth engines’, alongside convenience, bioenergy, hydrogen and renewables and power.

bp welcomes inquiries from property developers and landowners interested in collaborating to facilitate the growth of its EV charging network across Europe. For more information or to explore opportunities, please contact landenquiries@bp.com.

1 Mercedes-Benz Trucks celebrates world premiere of the battery electric long-haul truck eActros 600

About BP
BP’s purpose is to reimagine energy for people and our planet. It has set out an ambition ‎to be a net zero company by 2050, or sooner and help the world get to net zero, and a ‎strategy for delivering on that ambition. For more information visit bp.com.‎ 

We’re investing in today’s energy system, which is mainly oil and gas – and, not or – in our transition and the energy transition. And while we’re mostly in oil and gas today, we’ve increased global investment in our lower carbon, convenience stores and power trading businesses (what we call our ‘transition growth engines’) from around 3% in 2019 to around 30% in 2022. You can find out more at: Our transformation.

About BP Pulse
BP Pulse is bp’s electric vehicle (EV) charging business. It is one of the leading rapid and ultra-fast public EV charging networks in the UK and operates the largest number of sites with ultra-fast charging in Germany.

bp’s EV charging journey started in 2018 with the acquisition of Chargemaster Ltd in the UK. Rebranded to bp pulse, its presence has extended rapidly across the world to China, Germany, Netherlands and the US.

Focused on fast, reliable charging, bp pulse is rolling out charge points to consumers and commercial fleets wherever they need them – including at bp forecourts.

EV charging is one of the key growth engines driving bp’s transformation to an integrated energy company. The company aims to grow its network of public EV charging points by 2030 to over 100,000 worldwide.

Phillips 66 Major Milestone in Production of Renewable Diesel

HOUSTON- Phillips 66 (NYSE: PSX) today announced a major milestone in its conversion of the San Francisco refinery into the Rodeo Renewable Energy Complex, expanding commercial scale production of renewable diesel.

The Rodeo Renewed project has progressed, with the facility now processing only renewable feedstocks and producing approximately 30,000 barrels per day of renewable diesel. The Rodeo Renewable Energy Complex is on track to increase production rates to more than 800 million gallons per year (50,000 BPD) of renewable fuels by the end of the second quarter, positioning Phillips 66 as a leader in renewable fuels.

“We are proud to announce this significant achievement at our Rodeo facility,” said Rich Harbison, Phillips 66 executive vice president of Refining. “The project advances Phillips 66’s long-held strategy to expand our renewable fuels production, lower our carbon footprint, and provide reliable, affordable energy while creating long-term value for our shareholders.”

Harbison added, “We’ve had strong execution to-date and are fully focused on finalizing the project in the second quarter.”

The Rodeo Renewed project design also provides the capability of producing renewable jet, a key component of sustainable aviation fuel (SAF), expected to start production in the second quarter of 2024.

Phillips 66 made a final investment decision to move forward with the Rodeo Renewed project in 2022, transforming the San Francisco refinery into one of the world’s largest renewable fuels facilities. As a world-class supplier of renewable fuels, the converted facility leverages a premium geographic location, unique processing infrastructure and flexible logistics to significantly reduce lifecycle carbon emissions.

Shell’s Energy Transition Strategy 2024

Shell plc (Shell) has published its first energy transition update since the launch of its Powering Progress strategy in 2021. At our Capital Markets Day in June 2023, we outlined how our strategy delivers more value with less emissions, emphasising the “more value” part. In this energy transition update, we are focusing on how the same strategy delivers “less emissions”.

Our target to achieve net-zero emissions by 2050 across all our operations and energy products is transforming our business. We believe this target supports the more ambitious goal of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels. Shell’s strategy supports a balanced and orderly transition away from fossil fuels to low-carbon energy solutions to maintain secure and affordable energy supplies.

“Energy has made an incredible contribution to human development, allowing many people around the world to live more prosperous lives. Today, the world must meet growing demand for energy while tackling the urgent challenge of climate change. I am encouraged by the rapid progress in the energy transition in recent years in many countries and technologies, which reinforces my deep conviction in the direction of our strategy,” said Wael Sawan, Shell’s Chief Executive Officer.

“Shell has a very important role to play in providing the energy the world needs today, and in helping to build the low-carbon energy system of the future. Our focus on performance, discipline and simplification is driving clear choices about where we can have the greatest impact through the energy transition and create the most value for our investors and customers. We believe this focus makes it more, not less, likely that we will achieve our climate targets. By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition,” said Sawan.

Our energy transition plans cover all our businesses. Liquefied natural gas (LNG) is a critical fuel in the energy transition, and we are growing our world-leading LNG business with lower carbon intensity. We are cutting emissions from oil and gas production while keeping oil production stable, and growing sales of low-carbon energy solutions while gradually reducing sales of oil products such as petrol, diesel and jet fuel. As one of the world’s largest energy traders, we can connect the supply of low-carbon energy to demand, as we have done for many years with oil and gas.

We have made good progress against our climate targets:
By the end of 2023, we had achieved more than 60% of our target to halve emissions from our operations by 2030, compared with 2016. This goes above and beyond the targets set by signatories to the Oil and Gas Decarbonization Charter agreed at COP28.
We continue to be an industry leader in reducing methane emissions. We were one of the first companies to set a target to achieve near-zero methane emissions by 2030. In 2023, we achieved 0.05% methane emissions intensity – significantly below our target of 0.2%. And in 2023 we also contributed to the World Bank’s Global Flaring and Methane Reduction Fund – further supporting industry-wide action to drive down methane emissions and flaring.
In 2023, we achieved our target to reduce the net carbon intensity of the energy products we sell, with a 6.3% reduction compared with 2016 – the third consecutive year we hit our target.
As Shell transforms into a net-zero emissions energy business, we aim to take the lead in the energy transition where we have competitive strengths, see strong customer demand, and identify clear regulatory support from governments. To help drive the decarbonisation of the transport sector, we have set a new ambition to reduce customer emissions from the use of our oil products by 15-20% by 2030 compared with 2021 (Scope 3, Category 11).1

Our focus on where we can add the most value has led to a strategic shift in our integrated power business. We plan to build our power business, including renewable power, in places including Australia, Europe, India and the USA, and have withdrawn from the supply of energy directly to homes in Europe.

In line with this shift to prioritising value over volume in power, we will focus on select markets and segments. This includes selling more power to commercial customers, and less to retail customers. Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target. We are now targeting a 15-20% reduction by 2030 in the net carbon intensity of the energy products we sell, compared with 2016, against our previous target of 20%.

We will continue to transparently report our progress against our targets and ambitions every year.
Driving towards a net-zero future

We are investing $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions, making us a significant investor in the energy transition. And in 2023, we invested $5.6 billion on low-carbon solutions, more than 23% of our total capital spending.
These investments include electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage. Our investments in new technologies are helping to reduce emissions for Shell and our customers. We aim to help scale new technologies to make them an affordable choice for our customers and are focusing our advocacy on key areas which we believe are critical to the energy transition: policies that support national net-zero ambitions including carbon pricing, supplying the secure energy the world needs, driving changes in demand and growing low-carbon solutions.

1Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023 and 569 million tonnes CO2e in 2021.

Bunge Chevron AG Renewables to Build New Oilseed Processing Plant in Destrehan, Louisiana

St. Louis, MO/ SAN RAMON, Calif./ – March 4, 2024 – Bunge (NYSE:BG) and Chevron (NYSE: CVX) today announced approval of a final investment decision for their joint venture Bunge Chevron Ag Renewables LLC to build a new oilseed processing plant adjacent to its existing processing facility located on the Gulf Coast in Destrehan, LA. The announcement was celebrated with a groundbreaking event at the site.

The plant features a flexible design, intended to allow it to process soybeans as well as softseeds, including novel winter oilseed crops, such as winter canola and CoverCress, among others. Expected to be operational in 2026, the processing facility aims to add scale and efficiencies to Bunge Chevron Ag Renewables, that will allow the company to better meet the increased market demand for renewable fuel feedstocks. The plant is also intended to support the growing feed and protein markets through the production of meal products.

“This new facility is another step in our long-term strategy to improve our capabilities at scale for the renewable fuels market and to reduce the carbon intensity of our own and our customers’ value chains,” said Luciano Salvatierra, Bunge’s Senior Vice-President, Renewable Fuels.

The expansion is expected to create more than 150 construction jobs and add 30 new jobs when the plant is operational.

“Having greater ability to process softseeds, including novel winter oilseed crops, will help advance our innovation in the feedstock space and meet the growing demand for renewable fuels,” said Stacey Orlandi, director, Manufacturing, Chevron Renewable Energy Group. “Investments like this one help support farmers and consumers while reducing the lifecycle carbon intensity for transportation fuels.”

Bunge Chevron Ag Renewables is focused on developing renewable fuel feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in renewable fuels production and marketing. Under the joint venture agreement, Bunge operates the JV’s processing plants in Destrehan and Cairo, Ill.; Chevron has purchase rights for the oil to use as feedstock to manufacture transportation fuels with lower lifecycle carbon intensity.

About Bunge
At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to strengthen global food security, increase sustainability where we operate, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to develop tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company has its registered office in Geneva, Switzerland and its corporate headquarters in St. Louis, Missouri. We have approximately 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.

Phillips 66 Appoints Robert W. Pease to Board of Directors

HOUSTON — The Board of Directors of Phillips 66 (NYSE: PSX) has appointed Robert W. Pease to serve on the board, effective immediately. Following the appointment, the board consists of 14 directors, 12 of whom are independent. In addition, Phillips 66 and Elliott Investment Management L.P. (together with its affiliates, “Elliott”) have agreed to work together to identify a second mutually agreed director to be named over the coming months.

“Phillips 66 is pleased to welcome Bob to the board. His demonstrated refining experience, leadership and energy expertise will add to the board’s oversight of the company as we advance our strategic priorities and deliver long-term, sustainable value. Phillips 66 is well positioned as the leading integrated downstream energy provider,” stated Greg Garland, executive chairman of the board. “Bob complements an already strong and diverse board and joins Phillips 66 after collaborative discussions with one of our largest investors. We appreciate the constructive engagement that we have had with Elliott in adding a highly qualified independent director.”

“We have worked collaboratively with Phillips 66 on the board’s appointment of Bob, who will bring extensive experience in refining and the energy industry more broadly,” said Elliott Partner John Pike and Senior Portfolio Manager Mike Tomkins. “As a large investor, we believe Phillips 66 would substantially increase shareholder value by hitting the enhanced targets it has outlined. We look forward to continuing our work with Phillips 66 to identify an additional director who can add valuable perspectives and experience to the board.”

Pease brings to the board over 38 years of experience in the energy industry and a global perspective on business affairs. During his career, he served in various leadership roles at Shell Trading (U.S.) Co., Motiva Enterprises and Cenovus Energy, across multiple facets of the downstream energy business, including refining, midstream and supply and trading operations. Pease’s roles included president of Shell Trading (U.S.) Co.; chief executive officer and president of Motiva; and, most recently, as president, downstream of Cenovus’ U.S. business and executive vice president, Corporate Strategy & president, Downstream.

Pease earned a Bachelor of Science degree in Chemical Engineering from the Rose-Hulman Institute of Technology and earned an executive certification from the Darden Graduate School of Business at the University of Virginia.

Phillips 66 Appoints Robert W. Pease to Board of Directors

Jeff Dietert (investors)
832-765-2297
jeff.dietert@p66.com

Charles E. Moran (media)
855-841-2368
charles.e.moran@p66.com

Source: Phillips 66

ExxonMobil Corporate Plan more than doubles earnings potential from 2019 to 2027; 18% compound annual earnings growth significantly outpaces peers1 On track to deliver ~$14 billion of further earnings and cash flow growth potential over the next four years

SPRING, TEXAS – ExxonMobil gave an update to its Corporate Plan through 2027, reflecting continued execution of its strategy to provide the products society needs and to lower emissions, both its own and others’.

Expecting capital investments to generate average returns of ~30%, with payback periods less than 10 years for greater than 90% of the capex2
Pursuing more than $20 billion in lower emissions opportunities, up $3 billion
Generated $9 billion in structural cost savings with $6 billion more expected by 2027
Increasing pace of share repurchases to $20 billion per year from the Pioneer close through 2025, assuming reasonable market conditions
Since 2019, solid execution of ExxonMobil’s strategy has increased the earnings power of the corporation, adding about $10 billion to its annual earnings and cash flow at a real Brent price of $60 per barrel. These improvements provide a strong foundation to further grow annual earnings and cash flow by $14 billion from year-end 2023 through 2027, as the company continues to reduce structural costs and improve the mix of its business by growing production from low-cost-of-supply, advantaged assets and increasing sales of high-value performance chemicals, lower-emission fuels, and performance lubricants.

“By any measure, our plans have and will continue to deliver exceptional value,” said Darren Woods, chairman and chief executive officer. “We remain committed to providing the energy and products that raise living standards around the world while building a new business to reduce emissions in hard-to-decarbonize parts of the economy. ExxonMobil is uniquely equipped to do both, and we’re confident that both present significant opportunities for profitable growth.”

The company also announced it intends to deliver $6 billion in additional structural cost reductions by year-end 2027, bringing the total structural cost savings to approximately $15 billion versus 2019. Opportunities from consolidating value chains and centralizing key activities including maintenance, supply chain, procurement, order to cash, financial reporting, planning and analysis, and trading will enable further efficiency and execution effectiveness.

Upstream earnings potential is on track to more than double by 2027 versus 2019, resulting from investments in high-return, low-cost-of-supply projects. Over the next five years, approximately 90% of the company’s planned Upstream capital investments in new oil and flowing gas production are expected to generate returns greater than 10% at a Brent price of $35/bbl. The company has made good progress executing its plan to reduce Upstream operated greenhouse gas emissions intensity by 40% to 50% by 2030, compared with 2016 levels, having already achieved approximately half of this planned reduction.3

The company expects oil and gas production in 2024 to be about 3.8 million oil-equivalent barrels per day, rising to about 4.2 million oil-equivalent barrels per day by 2027, driven by growth in the Permian and Guyana.

Product Solutions is leveraging scale and technology advantages to nearly triple earnings potential by 2027 vs. 2019. Earnings growth is being delivered through structural cost reductions, strategic project execution that will double sales of high-value products, and other earnings improvements such as higher reliability, more efficient maintenance, facility optimization projects, and commercial improvements including trading. The portfolio value is being continuously upgraded through divestments of non-strategic assets and continued investment in advantaged sites to increase high-value products such as the recent chemical expansion in Baytown.

The Company’s capital allocation approach prioritizes competitively advantaged, high-return, low-cost-of-supply, value-accretive investments that enable ExxonMobil to lead the industry now and through the energy transition. The company now anticipates total annual capital expenditures and exploration expense of $23 billion to $25 billion in 2024 and $22 billion to $27 billion annually from 2025 through 2027, generating an average return of approximately 30%.2 Greater than 90% of the capex has payback periods less than 10 years.2 The increase in capex beginning in 2025 is driven by the growth in value-accretive Low Carbon Solutions opportunities to reduce emissions.

Increased cash flow and earnings enable further surplus cash generation and increased shareholder distributions. The company remains on track to complete $17.5 billion in share repurchases in 2023 as part of the $35 billion repurchase program previously announced for 2023 and 2024. After the Pioneer merger closes, the go-forward pace of the program in 2024 will be increased to $20 billion annually through 2025, assuming reasonable market conditions.

Low Carbon Solutions: Building a new value-accretive business
ExxonMobil is pursuing more than $20 billion of lower-emissions opportunities through 2027, which represents the third increase in the last three years, from an initial $3 billion in projects identified in early 2021. This is in addition to the company’s recent $5 billion all-stock acquisition of Denbury, which expanded carbon capture and storage opportunities through access to the largest CO2 pipeline network in the United States.

The company is pursuing a portfolio of opportunities in lithium, hydrogen, biofuels, and carbon capture and storage that in aggregate is expected to generate returns of approximately 15% and could reduce third-party emissions by more than 50 Mta by 20304,5. These lower emissions solutions help address climate change and closely align with ExxonMobil’s competitive advantages and core capabilities. Approximately 50% of the planned investments support building the company’s Low Carbon Solutions business, which reduces customers’ greenhouse gas emissions.

“We continue to see more opportunities to harness our technology, scale, and capabilities to implement real solutions to lower emissions and to profitably grow our Low Carbon Solutions business,” added Woods. “Success in accelerating emission reductions requires the development of nascent markets. We need technology-neutral durable policy support, transparent carbon pricing and accounting, and ultimately, customer commitments to support increased investment. We’re actively advocating for each of these areas so we can grow a profitable, and ultimately large, low carbon business.”

ExxonMobil is developing a leading position in lithium, fully leveraging its upstream skills, such as geoscience, reservoir management, and efficient drilling. It also taps the company’s downstream capabilities in fluid processing and extraction to separate the lithium from the brine. These skills and experiences underpin the company’s cost advantaged entry into the lithium business at scale, with strong returns and a lower environmental impact. Work has begun for the company’s first phase of lithium production in southwest Arkansas, an area known to have large, highly concentrated lithium deposits. First production is expected in 2027. The company is evaluating further growth opportunities in lithium globally. By 2030, ExxonMobil aims to produce enough lithium to supply the manufacturing needs of approximately 1 million EVs per year.6

The company recognizes the significant uncertainty in how the energy transition and its low carbon business will develop and expects to pace emissions-reduction investments, effectively allocating resources as markets, customer commitments, and policy evolve. This minimizes the downside risks while establishing an advantaged position to capture and maximize the upside potential.

The balance of the company’s low carbon capital will be used to reduce its own emissions in support of its 2030 emission reduction plans and its 2050 Scope 1 and 2 net-zero ambition. In the Permian Basin, the company is on track to reach net-zero emissions for unconventional operations by 2030, and previously announced it also expects to leverage its Permian greenhouse gas reductions plans to accelerate Pioneer’s net-zero ambition by 15 years, to 2035 from 2050.

Supporting materials for this press release are available on the ExxonMobil Investor Relations site.

1 Adjusted net income sourced from Bloomberg; for ExxonMobil, Bloomberg’s adjusted net income is earnings ex. identified items for the applicable period. Figures for 2019 to 2022 are actuals sourced from Bloomberg. Consensus estimates for 2023 to 2027 are sourced from Bloomberg as of October 2, 2023.
2 Calculations are based on ExxonMobil plan. Calculations exclude capex for Corp & Fin, Operated by Others projects, exploration, LTO/maintenance/sustaining programs, and incubating projects and spend to reduce own emissions not supported by policy.
3 Emission reduction plans announced in December 2021 include a 20- to 30-percent reduction in corporate-wide greenhouse gas intensity by 2030 compared to 2016 levels. This will be supported by a 40- to 50-percent reduction in upstream greenhouse gas intensity, a 70- to 80-percent reduction in corporate-wide methane intensity, and a 60- to 70-percent reduction in corporate-wide flaring intensity compared to 2016. Plans cover Scope 1 and Scope 2 emissions for assets operated by the company.
4 Lower-emission investment portfolio delivers ~15% return on a capital-weighted basis under current and potential future government policies based on ExxonMobil projections. Calculations exclude capex for incubating projects and spend to reduce own emissions not supported by policy.
5 We see the opportunity to help other essential industries and customers achieve their goals to lower emissions. Estimates of GHG emissions are on a life cycle basis and include avoided and abated emissions from hydrogen, lower-emission fuels, and carbon capture and storage. For example, customers could avoid up to 25 MTA of their GHG emissions if all of ExxonMobil’s projected 2030 supply to the market of lower-emission fuels displaces conventional fuel refined from crude oil. Calculation is an ExxonMobil analysis illustrating the general benefits of lower-emission fuels based on estimated fuel CI from various third-party sources (such as Argonne National Labs’ GREET model) as compared against its conventional fuel alternate on a life cycle basis. Calculation is an estimate that represents a range of potential outcomes that are based on certain assumptions. Estimates are based on the potential implementation of projects or opportunities that are at various stages of maturity. Individual projects or opportunities may advance to a final investment decision by the company based on a number of factors, including availability of supportive policy and permitting, technology and infrastructure for cost-effective abatement, and alignment with our partners and other stakeholders. Actual avoided and abated emissions abatement may differ.
6 Based on ExxonMobil internal analysis.
###

About ExxonMobil
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses – Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

API, State of Louisiana, Chevron U.S.A. Inc. Challenge Lease Sale 261 Final Notice of Sale

WASHINGTON, August 24, 2023 – The American Petroleum Institute (API) today joined with the State of Louisiana and Chevron U.S.A. Inc. in filing a challenge to the Department of the Interior (DOI) Bureau of Ocean Management’s (BOEM) Final Notice of Sale for Lease Sale 261. Today’s challenge follows BOEM’s announcement yesterday to hold the final offshore lease sale mandated by the Inflation Reduction Act, but with significantly reduced acreage and severe restrictions on oil and natural gas vessel traffic.

“Today we’re taking steps to challenge the Department of the Interior’s unjustified actions to further restrict American energy access in the Gulf of Mexico,” said API Senior Vice President and General Counsel Ryan Meyers. “Despite Congress’ clear intention in the Inflation Reduction Act, the Biden administration has announced a ‘lease sale in name only’ that removes approximately 6 million acres of the Gulf of Mexico from the sale and adds new and unjustified restrictions on oil and natural gas vessels operating in this area, ignoring all other vessel traffic. Together with the State of Louisiana and Chevron U.S.A. Inc., we intend to use every legal tool at our disposal to challenge these actions.”

“Once again, Joe Biden is unlawfully attempting to kill both Louisiana jobs and affordable energy for all Americans,” said Louisiana Attorney General Jeff Landry. “We are yet again taking the President to court, where we trust the rule of law will be followed and Biden’s bureaucrats will be defeated.”

Background on the Five-Year Program for Federal Offshore Leasing:

For 45 years, the Interior Department has been required to prepare a five-year offshore leasing program that will best meet America’s energy needs for the ensuing five-year period, detailing a schedule for regular oil and natural gas lease sales, including in the Gulf of Mexico.

It has been more than one year since the Department of the Interior allowed the five-year program for federal offshore oil and natural gas leasing to lapse with no immediate replacement.

The U.S. Gulf of Mexico produces some of the lowest carbon intensity barrels in the world. Constrained production in this basin could be replaced by higher carbon intensity barrels from elsewhere in the world.

According to the U.S. EIA, Gulf of Mexico federal offshore oil production accounts for 15% of total U.S. crude oil production and federal offshore natural gas production in the Gulf accounts for 5% of total U.S. dry production.
Over 47% of total U.S. petroleum refining capacity is located along the Gulf coast, as well as 51% of total U.S. natural gas processing plant capacity.

An agreement announced last month proposed operating “recommendations” that would impose significant burdens on operators and increase emissions from vessels forced to operate at suboptimal speeds or idle outside the restriction areas.

Adopting the nighttime and low visibility restrictions could cut transit windows to approximately 50%– requiring industry to balance the government’s recommended practices against safely and efficiently servicing ongoing operations.

These restrictions would unfairly single out oil and gas traffic in an area that is one of the most used maritime areas in U.S. waters by a variety of industries. Thousands of vessels pass through this area every day.
API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

Bunge, Chevron Acquire Argentina Seed Business Chacraservicios

ST. LOUIS, MO and SAN RAMON, Calif., July 5, 2023 – Bunge (NYSE: BG) and Chevron’s Renewable Energy Group Inc., a subsidiary of Chevron Corporation (NYSE: CVX), acquired Chacraservicios S.r.l., based in Argentina from the Italian-based Adamant Group. This latest investment in novel seeds adds a new oil source in Bunge and Chevron’s global supply chains and will help both companies meet the growing demand for lower carbon renewable feedstocks. Terms of transaction were not disclosed.

“Across our business, our decision-making process includes a focus on carbon. Investing in this new oilseed crop is another step towards our goal of expanding lower carbon intensity feedstocks to help meet the growing demand for renewable fuels,” said Fernando Candia, Bunge’s Vice-President Carbon Solutions. “As a leader in oilseed processing, we are pleased to bring innovative crop solutions to farmers and process it into sustainable solutions for consumers.”

Founded in 2003, Chacraservicios was bought by Adamant Group, which invested through first-stage development of the company. Chacraservicios is focused on the cultivation of Camelina Sativa, a cover crop with high oil content, that benefits farmers, consumers and the environment. Bunge plans to provide Chacraservicios crush tolling and management services.

“Agricultural innovation is powering renewable fuels development around the world, and opportunities like this are helping Chevron expand our portfolio of affordable, reliable and lower carbon fuels,” said Natalie Merrill, senior vice president for business development with Chevron Renewable Energy Group. “Together with Bunge, Chevron’s Renewable Energy Group looks forward to working with the Chacraservicios team on meal and oil processing innovations.”

The companies expect to continue to explore opportunities to increase their participation in the development of next generation, renewable fuels and advance a lower carbon energy future.

About Bunge
At Bunge, our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to put quality food on the table, increase sustainability where we operate, strengthen global food security, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to improve the productivity and environmental efficiency of agriculture across our value chains and to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to create and reimagine the future of food, developing tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company is headquartered in St. Louis, Missouri, and we have more than 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

Ross Allen, Chevron External Affairs
media@chevron.com

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.chevron.com.

API Statement on 2023-25 RFS Standards

WASHINGTON, June 21, 2023 — The American Petroleum Institute (API) issued the following statement from Vice President of Downstream Policy Will Hupman in response to the Environmental Protection Agency’s (EPA) release of the final 2023 – 2025 biofuel blending obligations under the Renewable Fuel Standard (RFS):

“We share EPA’s goal of reducing emissions in the transportation sector and are supportive of efforts to improve the Renewable Fuel Standard (RFS) program to advance a lower carbon future. While we welcome EPA’s decision to omit the complex regulatory changes from eRINs, we are disappointed the agency did not do more to seize the opportunity to refocus the RFS to further incentivize lower carbon fuels. We look forward to continuing to work with EPA to build on this policy and ensure American consumers have access to the affordable and reliable fuels that they depend on every day while continuing to reduce emissions from transportation.”

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

Brightmark, Chevron U.S.A. partnership expands to Michigan with second largest renewable natural gas project to date

SAN FRANCISCO/SAN RAMON, Calif. – Brightmark RNG Holdings LLC is positioned to expand renewable natural gas (RNG) production with five new anaerobic digestion dairy farm projects in western Michigan, designed to convert animal waste to renewable fuels.

Brightmark RNG Holdings LLC is a joint venture between Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), and Brightmark Fund Holdings LLC, a subsidiary of Brightmark LLC. The Chevron-Brightmark renewable natural gas joint venture operates a nationwide system of RNG joint venture projects.

The Castor Project, which processes manure from one large digester, is Brightmark and Chevron’s second-largest RNG project. Other Michigan projects in the joint venture include Meadow Rock, Red Arrow, Willow Point, and SunRyz.

“We’re excited to work with our partner Chevron and farmers in Michigan to progress the development of our RNG projects, which are designed to drive both lower carbon intensity outcomes for organic waste and investments in local farmers and their surrounding communities supporting lower carbon solutions,” said Bob Powell, founder and chief executive officer of Brightmark LLC. “We are growing our network of strategic relationships with farmers across the country in order to advance the reduction of the agricultural industry’s carbon intensity by seeking renewable fuels from new sources and considering circularity challenges at increasing scale.”

Anaerobic digestion is a circular technology that captures animal manure from partner sites and converts it into renewable natural gas, fertilizer, and water that can be recycled back into agricultural and energy systems for reuse. Including these Michigan projects, the Chevron-Brightmark RNG joint venture has a total of 20 RNG projects across the country.

“Transitioning to a lower carbon future is dependent, in part, on ambitious innovations and pragmatic solutions,” said Andy Walz, president of Chevron Americas Products. “Launching these anaerobic digestion projects with Brightmark can help us develop new solutions for transportation, industry, and customers who rely on our products.”

The net reduction of greenhouse gas emissions from the manure processed at the anaerobic digestion dairy farm projects in Michigan is equivalent to planting over 179,000 acres of forest each year. Additionally, these projects are expected to reduce land application of raw manure and improve odor, water quality, and nutrient management practices at farms.

“We have always strived to be stewards to our land, community, and industry. Brightmark is our valued partner in our efforts to advance a lower carbon energy business.” stated Greg Stahl, lead farmer of The Castor Project. “We look forward to working with Brightmark and Chevron on these renewable natural gas projects in our shared pursuit to create value from underutilized resources.”

For more information on Brightmark RNG Holding LLC’s renewable natural gas projects, please visit here.

About Brightmark
Brightmark LLC is a circular innovation company with a mission to Reimagine Waste, developing solutions that make a positive environmental impact on the world and communities where it operates. Brightmark’s established anaerobic digestion and proprietary plastics renewal technologies make the company a veteran in a burgeoning marketplace. The company works across sectors, including agriculture, healthcare, manufacturing, and transportation to decarbonize operations, displace reliance on virgin fossil fuels, and solve circularity challenges at scale.

Committed to systems change in waste, Brightmark works collaboratively to address gaps where traditional methods fall short through its innovative closed-loop approach to recycling and renewables. To date, Brightmark has repurposed more than four million pounds of landfill-bound plastics and reduced 500,000 tons of CO2eq from the atmosphere through anaerobic digestion. The company is also deeply committed to conservation, education, and sustainability career training by partnering with local and national organizations that help protect land and oceans. For more information, visit www.brightmark.com.

About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals, and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations, and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets, and other emerging technologies. More information about Chevron is available at www.chevron.com.

About The Castor Project
Three Western Michigan farms have each signed supply agreements indicating their intent to provide the company with dairy manure from their herds that will serve as feedstock for new anaerobic digesters to be built on Beaver Creek Farm. The digesters will capture, extract, and clean the methane in the manure, then convert it into renewable natural gas (RNG) and inject it into a nearby gas grid pipeline. The project is part of the recently announced joint venture Brightmark RNG Holdings LLC, between Brightmark Fund Holdings LLC and Chevron U.S.A. Inc.

Brightmark Media Contact:
Aunny De La Rosa-Bathe
abathe@apcoworldwide.com

Chevron Media Contact:
Ross Allen, Chevron
External Affairs
media@chevron.com

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API Statement on 2023-25 RFS Standards

Brightmark, Chevron U.S.A. partnership expands to Michigan with second largest renewable natural gas project to date

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