Exxon Mobil Unveils 2030 Plan Intending To Deliver Incremental Earnings Potential Of $20B: Retail’s Unswayed For Now
By Stocktwits Inc | First Published Dec 11, 2024, 7:23 PM ISTExxon plans to grow earnings at a compounded annual growth rate (CAGR) of 10% and cash flow at 8%. It also has plans to achieve an additional $7 billion in structural cost savings.
Energy giant Exxon Mobil Corp (XOM) unveiled its corporate plan to 2030 under which 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 and disciplined cost and capital management.
Exxon plans to grow earnings at a compounded annual growth rate (CAGR) of 10% and cash flow at 8%. It also plans to achieve an additional $7 billion in structural cost savings by simplifying business processes, optimizing supply chains, enhancing maintenance turnaround processes, and modernizing information technology and data management systems.
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In 2025, Exxon anticipates cash capital expenditures to be $27 to $29 billion. While the company continues to expect to repurchase shares at a $20 billion annual pace in 2025, it also announced plans for a further $20 billion in share repurchases in 2026.
Regarding upstream, Exxon expects to deliver an additional $9 billion in annual earnings potential, reflecting more than 50% growth compared to 2024.
Exxon said with the Pioneer acquisition, it reached its target of having over 50% of its total upstream production from advantaged assets — Permian, Guyana, and LNG — three years earlier than planned.
By 2030, over 60% of its production is expected to come from these advantaged assets, which are expected to grow by an additional 1.2 million oil-equivalent barrels per day (Moebd) during that period.
The firm also said it expects to achieve more than $3 billion in annual synergies following its acquisition and integration of Pioneer, a more than 50% increase from prior guidance.
Meanwhile, the firm’s Product Solutions business is expected to grow annual earnings potential by an additional $8 billion by 2030. The firm also highlighted that with supportive policy and growing market interest, it expects its Low Carbon Solutions business to grow earnings contributions by $2 billion in 2030 compared to 2024.
CEO Darren Woods said through 2030, the company plans to deploy about $140 billion to major projects and the Permian Basin development program. “We expect this capital to generate returns of more than 30% over the life of the investments,” he stated.
Following the announcement, retail sentiment on Stocktwits continued to trend in the ‘neutral’ territory, albeit with a higher score. The move was accompanied by higher message volume.
Exxon shares were trading in the red in Wednesday’s pre-market session. The stock has gained over 10% since the beginning of the year.
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