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XOM Expects Flat Output, Lower Spending In 2014

|Includes: Exxon Mobil Corporation (XOM)

ExxonMobil announced that it expects to produce about 4 MMBOE/d in 2014, little changed from last year. Additionally, the company expects overall spending to fall 6% YoY to about $39.8 billion in 2014, down from a 'peak' spending of $42.5 billion in 2013.

The company said that current outlook for output was adjusted to exclude some volume from Iraq and Abu Dhabi. However, growth is expected to pick up from 2015 to 2017, when production is expected to grow 2-3% as major projects add an additional 1 MMBOE/d. This year, Exxon said it expects to bring 10 major projects into production, most of them targeting more profitable crude oil or other liquids.

Exxon also stated that tensions between Russia and Ukraine have not yet disrupted its activity in Russia, where it is prospecting for oil and gas in Arctic waters. However, the company has put on hold its pursuit of the Ukraine Skifska Block in the Black Sea.

Among the significant projects planned for start-up this year are the PNG LNG project, the Sakhalin-I platform in Russia, a heavy oil expansion project in Canada and deep-water projects in the Gulf of Mexico.

In July 2013, ExxonMobil acquired 50% interest in PNG license.

In April 2013, Rosneft and ExxonMobil reported plans for a $15 billion LNG project to supply Asia-Pacific markets from their joint Sakhalin-1 oil and gas project.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.