Exxon Mobil Unveils 2030 Plan Intending To Deliver Incremental Earnings Potential Of $20B: Retail’s Unswayed For Now

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.

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.

XOM’s Sentiment Meter and Message Volume as of 8:13 a.m. ET on Dec. 11, 2024 | Source: Stocktwits

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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