Exxon sees big earnings boost from cost cuts, will increase share buybacks after Pioneer deal closes
Publishing timestamp: 2023-12-06 12:28:29
Summary
Exxon Mobil expects its earnings to more than double through 2027 as it implements cost-cutting measures and increases sales of chemicals, lower emission fuels, and performance lubricants. The company plans to grow its earnings and cash flow by $14 billion over the next four years and cut structural costs by $6 billion by the end of 2027. Exxon also plans to increase its annual share repurchase program to $20 billion in 2024 through 2025 and boost investments in lower carbon emissions projects to $20 billion through 2027. The company aims to reduce its own upstream greenhouse gas emissions by up to 50% by 2030 and is focusing on carbon capture, lithium for electric vehicle batteries, hydrogen, and biofuels. Exxon expects oil and gas production to increase and is standing up a lithium drilling operation in Arkansas to support the manufacture of 1 million electric vehicles by 2030.
Sentiment: POSITIVE
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