Exxon boosts forecast, aims for US$25 billion earnings growth by 2030

The logo for ExxonMobil appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)

HOUSTON — Exxon Mobil is targeting $25 billion in earnings growth from 2024 to 2030 and will increase oil and gas production, the top U.S. oil producer said on Tuesday as it leans on profitable assets in Guyana and the Permian Basin.

The outlook represents a $5 billion increase from its previous plan, although Exxon will maintain its annual spending targets of $28 billion to $33 billion per year through 2030. Shares of Exxon were up three per cent in morning trading.

Exxon said its updated corporate plan reflects its work to cut costs and increase profits even through periods of oil price volatility. Its upstream focus also includes growing its liquefied natural gas business.

“We are more profitable than we were five years ago, and we expect that to continue as the advantages we’ve unlocked position us for even greater opportunities in the years ahead,” Exxon CEO Darren Woods said in prepared remarks.

Exxon also announced that Chief Financial Officer Kathy Mikells will retire effective Feb. 1 and will be succeeded by Neil Hansen, currently president of global business solutions.

Mikells is stepping away to focus on recovering from a health issue that is not life-threatening, Woods said during a conference call with analysts.

Low-cost Permian oil will boost profits

Upstream production will reach 5.5 million barrels of oil equivalent per day by 2030, up from a previous forecast of 5.4 million boepd.

That will be helped by the Permian Basin, the top U.S. oilfield, where Exxon said it will grow production to 2.5 million boepd, up from the previous goal of 2.3 million boepd.

Earnings from the upstream business is expected to grow by more than $14 billion through the end of the decade from 2024.

Artificial intelligence is being used to direct drilling paths and Exxon said AI is allowing it to save money across operations. Cost of supply in the Permian is expected to be around $30 per barrel, Exxon said, down $5 from its previous expectation.

Exxon said it also targets $35 billion in cash flow growth by 2030 versus 2024, representing a $5 billion increase from its earlier outlook.

The updated plan is likely to be received positively by investors, said TPH Energy Research analyst Jeoffrey Lambujon.

Exxon increased its cost savings plan by $2 billion and now expects to reach $20 billion in reductions by 2030.

(Reporting by Sheila Dang in Houston and Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila, Chizu Nomiyama, Alexander Smith and David Gregorio)