Exxon Mobil Corp.

The negative outlook reflects S&P Global Ratings' view that Exxon Mobil Corp.'s current financial leverage is weak for the rating, as well as the potential for a downgrade if credit measures do not improve over the next 12 months. We project funds from operations (FFO) to debt to be in the 30% to 40% range and debt to EBITDA of 2.0x to 2.5x in 2021, as oil prices and production increase and refining and chemical margins improve due to the expected recovery in global demand. Our estimates assume the company exercises prudent financial policies, including tempering capital spending and limiting share repurchases, and that it takes additional steps to improve leverage over the next 12 months. We could lower ratings

...Massive and diverse proved reserve base and production volumes, and geographically diversified chemical and refining operations limit financial, operating, environmental, and regulatory risk. Exxon Mobil Corp. has outstanding competitive positions in all facets of the oil and gas industry. Its far-reaching, highly diversified global operations in the upstream, downstream, and petrochemical sectors provide a measure of cash flow stability despite the volatile nature of each industry. ExxonMobil's diverse operating base also limits the potential financial impact of a localized environmental incident, tighter regulation, or community opposition. The size of the company's operating base keeps costs low. ExxonMobil's size and scale in the upstream, downstream, and petrochemical industries affords significant economies of scale in each segment, and allows it to invest a portion of its capital in long-term projects, which may not generate positive cash flows for several years. Vertical integration...

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