trending Market Intelligence /marketintelligence/en/news-insights/trending/sy8h9-_jtr5a1wqf95v-da2 content esgSubNav
In This List

Exxon looks to double earnings to $31B by 2025

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Using ESG Analysis to Support a Sustainable Future


Exxon looks to double earnings to $31B by 2025

Exxon Mobil Corp. expects earnings will more than double to $31 billion by 2025 at 2017 crude oil prices, officials said March 7 during the company's annual investment analyst meeting in New York.

Exxon's aggressive strategy to boost its adjusted earnings from $15 billion in 2017 includes strengthening its three core businesses.

From its upstream operations, the company expects production will increase 1 million barrels of oil equivalent per day to about 5 million boe/d in 2025 from 25 new and existing projects around the world.

A key part of the company's strategy for growth also lies in hiking its production in the prolific U.S. Permian Basin, where it indicated previously it plans to triple oil and natural gas production to more than 600,000 boe/d by 2025. The expansion is part of a larger company plan to invest $50 billion in its U.S. assets over five years in light of recent U.S. tax reform.

Exxon is following in the footsteps of many of its competitors, who have dumped billions of dollars into investments in the Permian. In early 2017, Exxon spent more than $6 billion to more than double its Permian Basin potential by acquiring several assets under the companies owned by the Bass family, with an estimated resource of 5.4 billion boe. In the Permian, the company has increased the size of its resources to 9.5 billion boe, from about 3 billion boe in the past year.

"We are in a solid position to maximize the value of the increased Permian production as it moves from the well head to our Gulf Coast refining and chemical operations, where we are focusing on manufacturing higher-demand, higher-value products," Darren Woods, Exxon chairman and CEO, said March 7.

Exxon expects earnings from its downstream business will double by 2025 due to upgrading its product slate through investments at its refineries in the U.S., Rotterdam, Antwerp, Singapore, and Fawley in the United Kingdom.

Exxon also announced plans for rather lofty spending, earmarking $24 billion this year and $28 billion in 2019 for capital expenditures. Chevron Corp. announced March 6 it intends to maintain its disciplined capital spending approach, earmarking more than $18 billion for 2018 and an estimated $18 billion to $20 billion through 2020.

At 9:48 a.m. ET, Exxon's shares on the NYSE were down $1.30, or 1.71%, on the day to $74.88 per share.