ExxonMobil Plan Aims to Accelerate Oil Production, Earnings

By Reuters

(Reuters) – ExxonMobil on Wednesday said annual project spending will rise to between $28 billion and $33 billion between 2026 and 2030, following the acquisition of U.S. shale producer Pioneer Natural Resources.

The top U.S. oil producer laid out a five-year plan to increase earnings by $20 billion and cash flow by $30 billion to fund its expansion plans for oil and liquefied natural gas (LNG) production and drive shareholder returns.

The new targets come as Exxon is riding high. Its Guyana operations are generating huge profits and U.S. shale business is on track to double oil production this year through its acquisition Pioneer Natural Resources. In LNG, it is a mixed bag with setbacks in its U.S. and Mozambique projects.

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Exxon’s 12.7% year-to-date share gain is well above the sector’s about 8.4% appreciation as measured by energy mutual fund XLE. Its share-price increase stands out from double-digit percentage declines in ConocoPhillips and Occidental Petroleum’s shares this year.

The top U.S. oil producer aimed to more than triple its production in the Permian, the top U.S. shale field, to 2.3 million barrels per day (bpd) by 2030 and pump 1.3 million bpd from its Guyana operations.

Reporting by Mrinalika Roy in Bengaluru, additional reporting by Gary McWilliams in Houston; Editing by Sriraj Kalluvila