Exxon Mobil to boost capital spending

The company expects to deliver incremental growth potential of $20bn in earnings and $30bn in cash flow, driven by investing in "competitively advantaged opportunities, continued excellence in execution, and disciplined cost and capital management".

Next year, Exxon expects cash capital expenditures to be between $27bn and $29bn, reflecting the first full year of Pioneer in the portfolio and investment to build new businesses with base capex remaining flat.

Exxon completed its $60bn acquisition of Pioneer Natural Resources in May.

Capital expenditure will rise to between $28bn and $33bn annually in 2026-2030 "to progress attractive long-term opportunities", it said, with base planned capex roughly flat and reinvestment rate declining to 40% from 50% over the plan period.

Meanwhile, total upstream production is expected to reach 5.4 million barrels of oil equivalent per day by 2030, with more than 60% from advantaged assets.

Exxon also said it plans to add $7bn more in structural cost savings versus the third quarter of 2024.

Chairman and chief executive Darren Woods said that through 2030, Exxon plans to deploy about $140bn to major projects and the Permian Basin development program. This capital is expected to generate returns of more than 30% over the life of the investments.

Woods said: "ExxonMobil has a unique set of highly valuable competitive advantages that equip us to do what few companies have ever done - create world-scale solutions to society’s biggest challenges, decade after decade.

"Our steadfast commitment to strengthening these advantages, including an unwavering investment in technology, has led to a history of innovative solutions that meet society’s critical needs, reduce costs, and grow high-value products. That’s a formula for profitable growth and shareholder value through and beyond 2030 - no matter the pace and scale of the energy transition - that truly puts us in a league of our own."