ExxonMobil plan aims to accelerate oil production, earnings
The top US oil producer plans to increase earnings by US$20 billion and cash flow by US$30 billion
EXXONMOBIL on Wednesday (Dec 11) said annual project spending will rise to between US$28 billion and US$33 billion between 2026 and 2030, following the acquisition of US shale producer Pioneer Natural Resources.
The top US oil producer laid out a five-year plan to increase earnings by US$20 billion and cash flow by US$30 billion to fund its expansion plans for oil and liquefied natural gas (LNG) production and drive shareholder returns.
The new targets come as Exxon is riding high. Its Guyana operations are generating huge profits and US shale business is on track to double oil production this year through its acquisition Pioneer Natural Resources. In LNG, it is a mixed bag, with setbacks in its US and Mozambique projects.
Exxon’s 12.7 per cent year-to-date share gain is well above the sector’s about 8.4 per cent appreciation as measured by energy mutual fund XLE. Its share-price increase stands out from double-digit percentage declines in ConocoPhillips and Occidental Petroleum’s shares this year.
The top US oil producer aimed to more than triple its production in the Permian, the top US shale field, to 2.3 million barrels per day (bpd) by 2030 and pump 1.3 million bpd from its Guyana operations. REUTERS
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