ExxonMobil has announced its corporate plan to 2030, creating a platform to further extend the company’s track record of delivering leading shareholder value.
The plan reflects the US group's strategy to leverage its unique set of competitive advantages and unrivaled opportunities to create significant upside potential for shareholders.
The company expects to deliver incremental growth potential of $20 billion in earnings and $30 billion in cash flow driven by investing in competitively advantaged opportunities, continued excellence in execution, and disciplined cost and capital management.
“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,” said Darren Woods, ExxonMobil Chairman and CEO.
“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,” he stated.
Consistent execution of ExxonMobil’s strategy and business transformation over the past five years has substantially strengthened its earnings power.
On a constant price and margin basis, the company is generating more than $15 billion in earnings and more than $20 billion in cash flow when compared to 2019 and has delivered structural cost savings of more than $11 billion year-to-date over 2019.
According to ExxonMobil, cash flow too has grown faster than that of any other integrated oil company (IOC) over the past three- and five-year periods
Over the next six years, it expects to generate an additional $20 billion in earnings potential and $30 billion in cash flow potential.
It plans to grow earnings at a CAGR of 10% and cash flow at 8% and has plans to achieve an additional $7 billion in structural cost savings by simplifying business processes, optimizing supply chains, further enhancing maintenance turnaround processes, and modernizing information technology and data management systems.
ExxonMobil’s capital allocation approach prioritizes competitively advantaged, high-return, low-cost-of-supply investments.
In 2025, the company expects cash capital expenditures to be in the range of $27 to $29 billion, reflecting the first full year of Pioneer in the portfolio and investment to build new businesses with base capex remaining flat.
From 2026 to 2030, base capex is consistent, while capex growth is driven by progressing advantaged, long-term opportunities in new businesses, and a few early-stage large projects in the company’s traditional businesses.
The reinvestment rate relative to expected cash flow declines 10 percentage points over the plan period.
“Through 2030, we plan to deploy about $140 billion to major projects and the Permian Basin development program,” remarked Woods.
“We expect this capital to generate returns of more than 30% over the life of the investments," he noted.
"Strong investment returns have driven 42 consecutive years of annual dividend growth, a claim only 4% of the S&P 500 can make. This is why, when we list our capital allocation priorities, investing in accretive growth always comes first,” he added.-TradeArabia News Service