- Plans on track to more than double
earnings and cash flow generation potential by 2025
- Key projects progressing on
schedule
- Work continues on lower-emissions
technologies, including biofuels and carbon capture
ExxonMobil is progressing growth plans to substantially increase
earnings and cash flow potential while researching technology
breakthroughs to reduce emissions, Chairman and CEO Darren Woods
told shareholders during the company’s annual meeting today.
“We are committed to sharing the company’s success with our
shareholders,” said Woods. “Higher earnings and increased cash flow
from our investments are a good means to accomplish this. We are
equally committed to helping society reduce global emissions while
supporting growth and prosperity for communities around the world –
effectively addressing the dual challenge.”
ExxonMobil expects to increase annual earnings potential by more
than 140 percent and double potential annual cash flow from
operations by 2025 from 2017 adjusted earnings, assuming a 2017 oil
price of $60 per barrel adjusted for inflation and based on 2017
margins.
During the meeting, Woods highlighted progress on major upstream
projects that are expected to help increase production to about 5
million oil-equivalent barrels per day by 2025.
Those projects include plans to increase production in the
Permian Basin to 1 million oil-equivalent barrels per day by 2024.
In Guyana, ExxonMobil recently announced the 13th discovery on the
Stabroek block, adding to the previously estimated 5.5 billion
barrels of discovered recoverable resource. Guyana’s first oil
production is on track for early next year – just five years after
discovery.
In Brazil, the company has acquired 2.3 million net acres in one
of the world’s most promising exploration plays and is finalizing
development plans for the Carcara resource, which will begin
production by 2024. In Mozambique, ExxonMobil secured offtake
commitments for the Rovuma LNG project as it progresses toward a
final investment decision. And in Papua New Guinea, the company is
planning a three-train liquefied natural gas expansion as it
continues to explore for gas in the country’s Highlands region.
In its downstream and chemical businesses, ExxonMobil is on
track to more than double earnings potential from 2017 adjusted
results by 2025, assuming constant 2017 margins, with investments
that capitalize on proprietary technology.
“A great example is the new hydrocracker at our Rotterdam
refinery which started up late last year,” said Woods. “Using
technology we developed, we are now upgrading low-value product
streams directly into higher-value base stocks and distillates – a
first for our industry.”
Woods highlighted ExxonMobil’s continuing efforts to address
society’s dual challenge of providing affordable energy necessary
for economic growth while reducing environmental impacts.
Last year, ExxonMobil participated in a Vatican-led climate
dialogue, joined the Oil and Gas Climate Initiative and advocated
for policies such as a carbon tax and strong methane
regulations.
Woods said the company continues its work on potential
technology breakthroughs – including next-generation biofuels for
transportation, carbon capture for power generation and new
industrial processes to reduce energy use – to provide reliable,
affordable and lower-emission energy at the necessary scale to have
a global impact.
“The world needs additional solutions,” he said. “That’s where
we think we can add significant value – leveraging ExxonMobil’s
experience in the global energy system and our strong foundation in
research and development.”
The company recently committed to spend up to $100 million over
10 years on research with the U.S. Department of Energy’s National
Renewable Energy Laboratory and National Energy Technology
Laboratory to bring lower-emissions technologies to commercial
scale.
“The agreement adds to our work with more than 80 universities
around the world and with five energy centers – at MIT, Princeton,
Stanford, the University of Texas and two national universities in
Singapore,” said Woods. “In addition, we partner with private
sector companies that have unique capabilities critical to
potential breakthroughs, such as Synthetic Genomics on algae
biofuels.”
During the meeting, shareholders re-elected ExxonMobil’s board
of directors, supported the company’s executive compensation
program, ratified PricewaterhouseCoopers LLP as independent
auditors and supported board recommendations on seven
shareholder-led proposals. The proxy voting results will be made
available later today on the company’s website.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. For more information, visit
www.exxonmobil.com or follow us on Twitter at
www.twitter.com/exxonmobil.
Cautionary Statement:
Outlooks, projections, estimates, goals, discussions of
potential, descriptions of business plans, objectives and resource
potential, market expectations and other statements of future
events or conditions in this release are forward-looking
statements. Actual future results, including future earnings, cash
flows, volumes, and other areas of financial and operating
performance; resource recoveries; project plans, completion dates,
timing, and capacities; product sales and mix; production rates and
capacities; and the impact of technology including technologies to
lower greenhouse gas emissions could differ materially due to a
number of factors. These include changes in oil or gas demand,
supply, prices or other market conditions affecting the oil, gas,
petroleum and petrochemical industries; population growth, global
economic growth, reservoir performance and depletion rates; timely
completion of exploration, development and construction projects;
war and other political or security disturbances; changes in law or
government policies, including environmental regulations and
international treaties, taxes, and political sanctions; the ability
to bring new technologies to commercial scale on a cost-effective
basis; the outcome of commercial negotiations; the actions of
competitors and customers; unexpected technological developments;
general economic conditions, including the occurrence and duration
of economic recessions; unforeseen technical difficulties; and
other factors discussed in Item 1A. Risk factors in our most recent
Form 10-K available on our website at www.exxonmobil.com.
Forward-looking statements contained in this release regarding
future earnings and cash flow are not forecasts of actual future
results. These figures are intended to help quantify the targeted
future results and goals of currently contemplated management plans
and objectives assuming a constant real 2017 Brent crude price of
$60 per barrel through 2025. This price is used for illustrative
purposes only and is not intended to represent management’s
forecast of future oil prices or the price management uses for
internal planning purposes. For the 2017 $60 crude price case
discussed in the 2017 and 2018 analysts’ meetings and used for
comparison purposes in calculating the objectives outlined here and
in those meetings, we have assumed that downstream and chemical
product margins remain consistent with 2017 levels; that other
factors such as laws and regulations (including tax and
environmental laws) and fiscal regimes remain consistent with
current conditions; and have otherwise developed these estimates
consistently with management’s internal planning and modeling
assumptions including future natural gas prices. For the
corporation and finance segment we assume expenses of $2.5 billion
annually. The forward-looking statements in this release are based
on management’s good faith plans and objectives as of the March 6,
2019 date of the most recent investor day, are not being updated
hereby, and we assume no duty to update these statements as of any
future date.
Adjusted earnings is a non-GAAP measure. Adjusted 2017 earnings
referenced in this release equal approximately $15 billion,
representing approximately $19.7 billion of GAAP earnings minus
approximately $6 billion of positive effects from U.S. tax reform,
partially offset by approximately $1.5 billion of impairments for
2017. References in this release to oil-equivalent barrels,
recoverable resource, and similar terms include quantities of oil
and gas that are not yet classified as proved reserves under SEC
definitions but that are expected to be ultimately recoverable.
For more information and definitions see the Frequently Used
Terms on the Investors page of our website at www.exxonmobil.com.
This release summarizes highlights from ExxonMobil’s 2019 Annual
Shareholders’ Meeting held on May 29, 2019. For more information
concerning the forward-looking statements and other information
contained in this release, please refer to the complete Annual
Meeting presentation as well as the March 6, 2019 investor day
presentation (including important information contained in the
Cautionary Statement and Supplemental Information sections of those
presentations) which are available live and in archive form through
ExxonMobil’s website at www.exxonmobil.com.
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