ExxonMobil has updated its corporate plan through 2027, showcasing its commitment to providing essential energy products while also lowering emissions.
The plan outlines a focus on capital investments that are projected to generate average returns of approximately 30%, with payback periods of less than 10 years for over 90% of the capital expenditures.
The company has already achieved $9 billion in structural cost savings, with an additional $6 billion expected by 2027.
In line with its commitment to shareholders, ExxonMobil plans to increase the pace of share repurchases to $20 billion per year from the Pioneer close through 2025, assuming reasonable market conditions.
“By any measure, our plans have and will continue to deliver exceptional value,” said Darren Woods, chairman and chief executive officer, noting that “we remain committed to providing the energy and products that raise living standards around the world while building a new business to reduce emissions in hard-to-decarbonize parts of the economy. ExxonMobil is uniquely equipped to do both, and we’re confident that both present significant opportunities for profitable growth.”
The company expects oil and gas production in 2024 to be about 3.8 million oil-equivalent barrels per day, rising to about 4.2 million oil-equivalent barrels per day by 2027, driven by growth in the Permian and Guyana.
Besides, the company has made good progress in executing its plan to reduce upstream operated greenhouse gas emissions intensity by 40% to 50% by 2030, compared with 2016 levels, having already achieved approximately half of this planned reduction.
“We continue to see more opportunities to harness our technology, scale, and capabilities to implement real solutions to lower emissions and to profitably grow our Low Carbon Solutions business,” said Woods.
The company plans to increase share repurchases and invest in low-carbon solutions to reduce emissions. Low Carbon Solutions will focus on opportunities in lithium, hydrogen, biofuels, and carbon capture and storage (CCS), with a goal to generate returns of approximately 15% and reduce third-party emissions by more than 50 Mta by 2030.
Notably, ExxonMobil is developing a leading position in lithium, with first production expected in 2027.
Work has begun for the company’s first phase of lithium production in southwest Arkansas, an area known to have large, highly concentrated lithium deposits. By 2030, ExxonMobil aims to produce enough lithium to supply the manufacturing needs of approximately 1 million EVs per year.
