Exxon Mobil Corp. has announced its intention to increase share repurchases to $20 billion per year starting from the completion of its acquisition of Pioneer Natural Resources Co. in the first half of next year. This represents a significant boost from its previous amount of $17.5 billion in 2023.
Projected Production Growth and Focus on Lower Emissions Opportunities
The oil major expects its oil-equivalent production to rise to 4.2 million barrels per day by 2027, up from 3.8 million barrels per day in 2024. This growth will primarily come from its operations in the Permian and Guyana regions.
Additionally, Exxon Mobil is actively pursuing over $20 billion worth of lower-emissions opportunities through 2027. This marks the third increase in such initiatives over the past three years, following an initial $3 billion in identified projects in early 2021.
Cost Reduction Targets and Achievements
Exxon Mobil aims to achieve $6 billion in structural cost reductions by the end of 2027. With this latest target included, the company has successfully reduced expenses by a total of $15 billion compared to 2019 levels.
Market Response
In response to these announcements, Exxon Mobil’s stock experienced a premarket trading increase of 0.5% on Wednesday.