ExxonMobil Keeps its Eye on No. 1 Spot
US major ExxonMobil expects annual earnings potential to go up by over 140% by 2025 compared with 2017, assuming oil averages $60/barrel and 2017 margins, the world's biggest privately-owned producer said March 6.
The target is 5 percentage points more than last year's estimate. Exxon expects its return on capital to more than double. It announced a big increase in its forecast Permian output March 5.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
“Given the success we experienced last year and the progress we’re making on our plans, we have even greater confidence in our ability to grow value for our shareholders,” said CEO Darren Woods at the company’s annual investor day at the New York Stock Exchange.
“We are exceeding the pace of our expected progress on the aggressive growth strategy we laid out last year,” Woods said. “We continue to enhance our industry-leading portfolio and are leveraging our competitive advantages in integration, scale, technology and execution to deliver long-term value for our shareholders.”
ExxonMobil’s updated earnings projection compares with last year’s estimated increase of 135% between 2017 and 2025, based on 2017 adjusted earnings. Cumulative earnings potential from 2019 through 2025 has increased by about $9bn, supported by further improvements to the company’s investment portfolio and divestment plans.
ExxonMobil expects annual cash flow from operations to reach $60bn in 2025, By that point it expects to be exporting LNG from the US and Mozambique, and more from Papua New Guinea. Estimated cumulative cash flow from operations and asset sales over the period from 2019 to 2025 is $24bn more than it forecast at last year’s analyst meeting, including $15bn from anticipated asset sales.
ExxonMobil added 1.3bn barrels of oil-equivalent to its resource base, thanks partly to Guyana and Brazil in 2018. In Guyana, the estimated gross recoverable resource from the Stabroek Block is now about 5.5bn boe, up a tenth from last year's estimate of more than 5bn boe. Downstream, its refining and chemicals divisions are also in good shape to grow, Woods said.