Significant oil and gas output growth to underpin increased earnings
ExxonMobil expects to see a material increase in its earnings potential until 2027 with upstream earnings set to more than double compared to 2019 supported by strong oil and gas production growth in the Permian basin and Guyana. Significant oil and gas output growth to underpin increased earnings and cash flow growth potential over the next four years. It expects capital investments to generate average returns of about 30%, with payback periods less than 10 years for greater than 90% of the capex. It aims to generate another $6 billion of structural cost savings by 2027, while increasing the pace of share repurchases to $20 billion per year from the Pioneer close through until 2025, assuming reasonable market conditions. The company expects oil and gas production in 2024 to be about 3.8 million barrels of oil equivalent per day, rising to about 4.2 million boe per day by 2027, driven by growth in the Permian and Guyana.
“By any measure, our plans have and will continue to deliver exceptional value,” said Darren Woods, chief executive. “We remain committed to providing the energy and products that raise living standards around the world while building a new business to reduce emissions in hard-to-decarbonize parts of the economy. ExxonMobil is uniquely equipped to do both, and we’re confident that both present significant opportunities for profitable growth.” Over the next five years, about 90% of the company’s planned upstream capital investments in new oil and gas production are expected to generate returns greater than 10% at a Brent price of $35 per barrel. The company said it is delivering on its plan to reduce upstream operated greenhouse gas emissions intensity by 40% to 50% by 2030, compared with 2016 levels, having already achieved half of this planned reduction. ExxonMobil said it is also pursuing more than $20 billion of lower-emissions opportunities through until 2027, and these opportunities include lithium, hydrogen, biofuels, and carbon capture and storage.
Source:.upstreamonline.com