- Exxon Mobil 's (XOM -3%) aggressive plans to triple production by 2025 comes at a cost: $24B spending on capital projects this year, $28B next year and an average of $30B during 2023-25.
- “Capex is the price you pay for cash flow,” says Chairman and CEO Darren Woods, who notes every $1 in capex by XOM in the past decade has generated $1.20 in operating cash flow.
- The higher spending “highlights that there are no easy fixes to rejuvenate Exxon’s portfolio, and it is likely to take time for this investment to flow through into higher earnings, cash flow and returns,” says RBC Capital analyst Biraj Borkhataria.
- “Please disclose more and meet us more. We would be greatly appreciative,” Wolfe Research's Paul Sankey tells Woods at today's analyst meeting; Woods does not commit to participating on XOM's earnings conference call, but says he has been meeting more with investors.
- Now read: Exxon Mobil: Perfect Storm Creates Buying Opportunity For Big Oil
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