Tags: Exxon Mobil | production | capex | oil

Exxon Mobil Sees Production Up Slightly as Spending Stalls

Wednesday, 02 Mar 2016 10:21 AM

Exxon Mobil Corp., the world's largest publicly traded oil company, said on Wednesday its output would rise slowly through 2017 as it continues cutting costs.

But Chief Executive Rex Tillerson said the company, which raised $12 billion in the debt market earlier this week, could increase its spending if the right opportunities arose.

"We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals," Tillerson said.

The company, which is meeting with analysts in New York, said it expects its 2017 capital spending to be below its planned spending of $23 billion this year.

It also said it is on track to start up 10 new oil and gas projects through the end of next year, adding 450,000 barrels of oil equivalent per day to its production capacity.

Oil prices have fallen some 70 percent since mid-2014, prompting major companies to slash budgets for expensive projects designed to bring hard-to-find new discoveries online.

Exxon's oil and gas production rose 3.2 percent in 2015, as the company's downstream refining unit provided some insulation against falling oil prices that have hit its upstream exploration and production unit.

The company's spending peaked at $42.5 billion in 2013 and has been falling since then. In early 2015, it said its average annual spending would be around $34 billion over the next several years.

In February of this year, it slashed planned spending for this year to $23.2 billion, a 25 percent drop from final 2015 outlays of $31.1 billion.

© 2017 Thomson/Reuters. All rights reserved.

 
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Exxon Mobil Corp., the world's largest publicly traded oil company, said on Wednesday its output would rise slowly through 2017 as it continues cutting costs.
Exxon Mobil, production, capex, oil
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2016-21-02
Wednesday, 02 Mar 2016 10:21 AM
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