Exxon outlines capex, earnings expectations through 2025

• Exxon Mobil (NYSE:XOM) +1.3% pre-market after unveiling plans to "increase earnings and cash flow to sustain and grow its dividend, reduce debt and fund advantaged projects, while working to commercialize lower emission technologies in support of the goals of the Paris Agreement."
• Exxon plans capital spending of $16B-$19B in 2021 and $20B-$25B annually through 2025 on high-return, cash-accretive projects, which can be modified to reflect market conditions.
• The company says it cut capital spending by 30% and cash operating expenses by 15% in 2020, and it expects to see $6B/year in permanent structural savings by the end of 2023 from 2019 levels.
• "Our investments are expected to generate returns of greater than 30%," CEO Darren Woods says at the company's investor day, noting that 90% of upstream investments in resource additions, including in Guyana, Brazil and the Permian Basin, generate a 10% return at $35/bbl or less.
• Exxon expects its emission reduction plans will reduce absolute greenhouse gas emissions by 30% for the Upstream business, while it "aims for industry-leading greenhouse gas performance and to eliminate routine flaring in line with the World Bank initiative by 2030."
• Exxon's actions are too dependent on maintaining its lofty dividend, as it pursues short-term goals to the detriment to long-term ones, Stanislas Capital writes in a neutral analysis posted recently on Seeking Alpha.

Comments

[Blue Blood]

Uk budget will boost hydrogen and transition projects. CNOOC was seeking buyers for North Sea fields. Shell may quit Niger Delta if it has to compensate saboteurs but can always join XOM in the Guyana gas-to-power project. Earth's magnetic field drives climate change, exonerating fossils.

[Old Professor]

Both promising and politically correct set of goals.

[Algorithmic]

@russom. Taken to reading the comments on these summaries. Better advice. I took XLE averaged in a 39.61 for a pure play american oil. By October 2021, the Binden bust will have begun. Run Sally Run.Long BP, XOM, RDSB, XLE.

[Illinois Bob]

I like the last bullet point, fortunately I have lots of practice reading news stories to understand between news and opinion...

[PapaWhisky]

It appears that Exxon got the memo.

Their 2020 slideshow had eight slides on emissions and CO2 and etc.

Their 2021 slideshow has twenty slides.

[abcde1]

@PapaWhisky ....the democrats are running things in 2021, they weren't in 2020. XOM's leadership is politically savvy and knows how to play the game. it's all BS, they know it, we know it, and the dems know it. with the fall of the berlin wall and soviet communism, the dems needed something else to worship, and it's now the earth.

[Tulip hoard]

Tripled up at 35 first class gift thank you Mr. Market so much for cutting the dividend 🤠lmfao

[Money 29]

XOM, and CVX, will figure it out. I would not be surprised by July both companies stock prices will be higher. I like XOM, CVX.

[1nimo]

@Money 29 CVX feels to high priced

[Username 47731613]

XOM is my baby

[correct way to invest]

EXXON GOING TO 70

[XRTrader]

@correct way to invest I think its probably going to $80! It was just way way way oversold.

[Russom]

Dividends are important but Exxon clearly pursues maximizing profitability till 2025. After that we will see with more clarity what is going to happen with fossil fuels and natural gas demand for the next 5 to 10 years period and position themselves accordingly

[littlecubbie2019]

That’s what I want. A growing sustainable business with a growing dividend. Long xom

[ziggyzig]

@littlecubbie2019
Wait till oil hits 85.00...on massive under investment...2022

[Texas2050]

@ziggyzig Isn't there plenty of capacity around the world that would come on line at $70/bbl? I am holding energy still but if you aren't in already I'm not sure i would be buying now. Any move up from here is going to be very slow i feel. Also, if SA decides to bring back the 1mil bbl/day they cut oil will fall.

[Veritas1010]

@Texas2050,

From one Texan to another that is I believe 100% correct.

I own it. I wouldn’t get in it and if it can return to $70-$80, bless its heart, I’m out of it. (My family generationally into $XOM since 1965). This decision is not spoke “slightin’ like”. We need it oil and NG. We’ll need it for a long time. Very true. But, the world is changing and I want my portfolio properly positioned to take advantage of the future, not merely the past.