Exxon ups profit target, lifts capex in update of growth plans

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

Exxon Mobil (NYSE:XOM) -0.8% pre-market after raising its 2025 profit growth target to more than 140% from 2017 adjusted earnings and plans to increase capital spending to $63B-$65B during 2019-20.

The updated earnings projection compares with last year’s estimated 135% increase during 2017-25, as XOM now sees cumulative earnings potential through 2025 rising by ~$9B, supported by further improvements to the company’s investment portfolio and divestment plans.

XOM also expects annual cash flow from operations to reach $60B in 2025, foreseeing cumulative cash flow from operations and asset sales during 2019-25 $24B higher than communicated at last year's analyst meeting, including $15B from anticipated asset sales during 2019-21.

XOM's update comes a day after the company said it foresees production from the Permian Basin rising to 1M boe/day as early as 2024.

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