At low intensity exercise you can just burn just fat.
The body can only get so much energy from fat in a given time, so at higher intensity levels it will try to get energy from both fat and stored carbohydrates.
Once you run out of easily available carbs it will try to supplement energy from the next available store, which is protein. i.e. muscle.
So this will happen well before you run out of body fat.
You can apparently increase the amount of base energy you can get from fat by training cell mitochondria with lots of low internet exercise.
Eg lots and lots of zone 1 or 2 on the Coggan zone system.