ExxonMobil outlines $140 billion investment plan through 2030

ExxonMobil (NYSE:XOM ), one of the largest publicly traded international oil and gas companies, has laid out an ambitious corporate plan extending to 2030, aiming to increase its cash capital expenditures to $27-$29 billion in 2025 and $28-$33 billion annually in 2026-2030 . The company's chairman and CEO, Darren Woods, announced today that this strategy is set to leverage ExxonMobil's competitive advantages and opportunities to significantly enhance shareholder value.

The company is set to increase its upstream production to 5.4 million oil-equivalent barrels per day by 2030, with more than 60% coming from advantaged assets. In addition, ExxonMobil plans to boost high-value product sales by 80% versus 2024, which is anticipated to contribute over 40% of the 2030 earnings potential for Product Solutions.

ExxonMobil's strategy includes raising the average annual synergies from the Pioneer acquisition by over 50% to more than $3 billion. The company is also targeting $7 billion in additional structural cost savings compared to the third quarter of 2024. Furthermore, it is set to pursue up to $30 billion in lower emissions investment opportunities.

The company's focus on disciplined cost and capital management, along with excellence in execution, is expected to drive $20 billion in earnings and $30 billion in cash flow growth. Woods emphasized ExxonMobil's commitment to technology and innovation as key to meeting society's needs and achieving profitable growth.

ExxonMobil has consistently outperformed its peers in cash flow growth over the past three- and five-year periods, leading to a robust total shareholder return. The company also plans to continue its practice of increasing shareholder distributions, with a recent announcement of a 4 cent per share increase in its quarterly dividend and a $20 billion annual share repurchase pace in 2025, with an additional $20 billion planned for 2026, assuming market conditions are favorable.

In the upstream sector, ExxonMobil is strengthening its portfolio with assets that offer lower supply costs and higher returns. With the integration of Pioneer, ExxonMobil has achieved significant synergies and now holds the largest contiguous acreage position in the Permian Basin. The company's production in the Permian Basin is expected to roughly double to approximately 2.3 million oil-equivalent barrels per day by 2030.

The company also announced plans for two additional developments in Guyana and is making strides in its LNG projects, with expectations to exceed 40 million metric tons per annum of LNG sales by 2030.

In its Product Solutions business, ExxonMobil is gearing up for the startup of six advantaged projects in 2025, aiming for an additional $8 billion in annual earnings potential by 2030. The company is also investing in advanced materials like ProxximaTM and is expanding into the battery anode market with a new high-performance coke product.

ExxonMobil's Low Carbon Solutions business is targeting up to $30 billion of investment in low emission opportunities between 2025 and 2030, focusing on carbon capture and storage, hydrogen, and lithium. The company's Baytown facility is expected to be the world's largest low-carbon hydrogen plant, with operations potentially starting in 2029.

ExxonMobil's comprehensive plan through 2030 reflects its intention to continue investing in projects that promise high returns and contribute to reducing emissions, while also prioritizing shareholder value through dividends and share repurchases.

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Source: Investing.com