- Advantaged projects, industry-leading growth opportunities and
favorable cost environment support earnings and cash flow growth
potential
- Population growth, global prosperity driving demand for oil,
natural gas and chemicals
- Company works to meet increased demand for reliable and
affordable energy while reducing emissions and the risks associated
with climate change
ExxonMobil continues to make progress on the company’s long-term
growth plans by investing through the commodity price cycle to
capture high-value opportunities and grow earnings and cash flow
potential.
“We are effectively executing our growth strategy that will lead
to sustained improvement in shareholder value,” Darren W. Woods,
ExxonMobil chairman and chief executive officer, said at the
company’s annual investor day at the New York Stock Exchange.
“Using the strength of our balance sheet to invest through the
cycle is a key element of our strategy. We are taking advantage of
a favorable cost environment and investing in advantaged projects –
underpinned by the long-term fundamentals of growing demand. The
strength of our portfolio and our financial capacity enable us to
continuously evaluate our priorities and the pace of investments
while preserving value, which is critical in current market
conditions and near decade-low commodity prices and margins.”
Woods told investors that ExxonMobil is planning capital
expenditures of between $30 billion to $35 billion annually through
2025, consistent with previous guidance. For 2020, the company
anticipates an investment level of up to $33 billion, depending on
the progress of individual projects.
Woods also outlined progress on key projects that support
ExxonMobil’s growth plans, including:
- In Guyana, the estimated gross recoverable resource from the
Stabroek Block increased to more than 8 billion oil-equivalent
barrels, in part as a result of six additional discoveries made in
2019 and 2020. ExxonMobil and its partners started production of
oil at the Liza field in December 2019, less than five years after
the first discovery of hydrocarbons and years ahead of industry
average. Production in Guyana is expected to reach more than
750,000 gross barrels of oil per day by 2025.
- In the Permian Basin, production volumes increased and remain
on track to exceed 1 million oil-equivalent barrels per day by
2024. A capital-efficient development approach is being applied at
scale, differentiating ExxonMobil from its competition. The
process, known as cube development, accesses multiple shale layers
simultaneously, saving money, maximizing value of resources and
reducing surface footprint. The company emphasized it is evaluating
the pace of near-term development activities in response to market
conditions, and can do so while preserving value. Permian well cost
and performance continues to improve and future growth will be
supported by integrated infrastructure capacity expansions at the
company’s Gulf Coast refineries and petrochemical operations.
- ExxonMobil holds the leading acreage position in Brazil among
international oil companies and added more than 450,000 acres in
2019, for a total of 2.5 million net acres. The company has plans
to increase exploration activity in 2020 and 2021, and Phase 1 of
the Bacalhau field development is progressing on schedule.
- ExxonMobil reported strong performance from its low-cost
liquefied natural gas (LNG) operations in Papua New Guinea, and the
company continues to work with the governments in Papua New Guinea
and Mozambique to advance new projects to support long-term demand
growth.
- In the downstream, ExxonMobil remains focused on maximizing
value from its base assets through increased integration,
utilization and efficiency. Project improvements continue to add
value, and recent investments in Beaumont, Rotterdam and Antwerp
generated earnings of $300 million in 2019.
- In the chemical business, long-term global fundamentals
continue to support the company’s expansion projects throughout the
U.S. Gulf Coast and in Asia. Eight projects have been completed,
four reached a final investment decision in 2019, and one
additional project is being progressed. These investments are
expected to deliver a 30 percent increase in sales growth relative
to 2017.
- The company is actively upgrading its portfolio through
strategic divestments, and continues to progress its $15 billion
divestment program.
Woods said ExxonMobil’s long-term growth plans are rooted in the
company’s efforts to meet the world’s increasing demand for
reliable and affordable energy, while reducing emissions and risks
associated with climate change.
Population growth and an expanding middle class will increase
energy demand, which will require massive investments in oil and
natural gas even in the more stringent low carbon scenarios, he
said. Investments in new technologies to reduce emissions will also
be needed.
ExxonMobil is a technology leader and is collaborating with
world-leading research institutions to advance lower-emission
solutions including biofuels, carbon capture and energy-efficient
manufacturing. The company is targeting the critical sectors of
commercial transportation, power generation and high-energy
industrial processes, because they produce 80 percent of
energy-related emissions and current technologies are insufficient
to achieve deep reductions.
“ExxonMobil is committed to being part of the solution,” said
Woods. “We’re investing in new energy supplies to improve global
living standards, working on technologies that are needed to reduce
emissions and supporting sensible policies, such as those putting a
price on carbon or regulations to reduce emissions of methane.”
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy companies, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. To learn more, visit exxonmobil.com and
the Energy Factor.
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Cautionary Statement:
Outlooks, projections, goals, estimates, discussions of
potential, descriptions of business plans, drilling plans and
strategies, growth and capital plans, resource potential, market
expectations, energy market evolution, time for technology
adoption, and other statements of future events or conditions in
this release are forward-looking statements. Actual future results,
including future earnings, cash flows, returns, margins, asset
sales and related proceeds, and other areas of financial and
operating performance; demand growth and energy mix; ExxonMobil’s
production growth, volumes, development and mix; the amount and mix
of capital expenditures; future distributions; proved reserves and
other resource volumes; reserve and resource additions and
recoveries; asset carrying values and future impairments; business
and project plans, completion dates, timing, costs, and capacities;
efficiency gains; operating costs and cost savings; integration
benefits; product sales and mix; production rates and capacities;
and the impact of technology, including to increase capital
efficiency and production and to reduce greenhouse gas emissions,
could differ materially due to a number of factors. These include
global and regional changes in the demand, supply, prices,
differentials or other market conditions affecting oil, gas,
petroleum, petrochemicals and feedstocks; financing sources;
population growth and global economic growth; reservoir performance
and depletion rates; the outcome of exploration projects and the
timely completion of development and construction projects;
regional differences in product concentration and demand; war,
trade agreements, shipping blockades or harassment and other
political, public health or security concerns; changes in law,
taxes or regulation, including environmental regulations, taxes,
and political sanctions and international treaties; the timely
granting of government permits; the resolution of contingencies and
uncertain tax positions; the impact of fiscal and commercial terms
and the outcome of commercial negotiations; opportunities for
regulatory approval of potential investments or divestments; the
actions of competitors and customers; the capture of efficiencies
between business lines; unexpected technological developments;
general economic conditions, including the occurrence and duration
of economic recessions; unforeseen technical or operating
difficulties; the ability to bring new technologies to commercial
scale on a cost-competitive basis, including large-scale hydraulic
fracturing projects; and other factors discussed in Item 1A. Risk
Factors in our Form 10-K for the year ended December 31, 2019 and
under the heading "Factors Affecting Future Results" in the
Investors section of our website at www.exxonmobil.com.
Forward-looking statements contained in this presentation
regarding the potential for future earnings, cash flow, volumes
growth, long-term growth, and capital employed are not forecasts of
actual future results. These figures are provided to help quantify
the potential future results and goals of currently-contemplated
management plans and objectives. We have assumed that other factors
such as laws and regulations, including tax and environmental laws,
and fiscal regimes remain consistent with current conditions for
the relevant periods.
References in this release to oil-equivalent barrels, gross
barrels or similar terms include quantities of oil and gas that are
not yet classified as proved reserves under SEC definitions but
that are expected to be ultimately recoverable.
The term “project” as used in this release can refer to a
variety of different activities and does not necessarily have the
same meaning as in any government payment transparency reports.
This release summarizes highlights from ExxonMobil’s 2020
Analysts’ Meeting held on March 5, 2020. For more information
concerning the forward-looking statements and other information
contained in this release, please refer to the complete Analysts’
Meeting presentation (including important information contained in
the Cautionary Statement and Supplemental Information sections of
the presentation) which is available live and in archive form
through ExxonMobil’s website at www.exxonmobil.com.
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