Saturday, January 28, 2023
HomeMarketExxon Mobil Expands Stock Buyback to $50 Billion in New Corporate Plan

Exxon Mobil Expands Stock Buyback to $50 Billion in New Corporate Plan

Exxon says that investments in 2023 are expected to be in the range of $23 billion to $25 billion.

- Advertisement -


Dreamstime

Exxon Mobil
unveiled a new corporate plan Thursday that includes increasing its stock buybacks and reducing greenhouse-gas emissions.

Exxon (ticker: XOM) said Thursday that the plan should double earnings and cash flow potential by 2027 versus 2019 as a result of “high-return, low-cost-of-supply projects.”

The company also said that by 2027, “upstream production is expected to grow by 500,000 oil-equivalent barrels per day to 4.2 million oil-equivalent barrels per day.” with more than 50% of the total to come from the U.S. Permian Basin, Guyana, Brazil, and liquefied natural gas projects the company is investing in.

Exxon said its near-term investments are projected to keep production at around 3.7 million barrels of oil equivalent per day in 2023, assuming a $60 per barrel Brent price. Investments in 2023 are expected to be in the range of $23 billion to $25 billion.

The company is also expanding its share-repurchase program to $50 billion through 2024, from $30 billion.

“We view our success as an ‘and’ equation, one in which we can produce the energy and products society needs – and – be a leader in reducing greenhouse gas emissions from our own operations and also those from other companies,” Darren Woods, chief executive officer, said in a news release.

The company also said that it has allocated around $17 billion on lower-emission initiatives through 2027, and much of that money will go toward building a “lower-emissions business with customers to reduce their greenhouse gas emissions.”

Shares of Exxon jumped 1.5% in premarket trading Thursday to $105.22. Coming into Thursday trading, the stock has soared 69% this year.

Write to Angela Palumbo at angela.palumbo@dowjones.com

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular