ExxonMobil Plans More Than 20 Project Start-Ups Through 2008 Adding to Industry's Largest Global Resource Base
08 Mars 2006 - 3:04PM
Business Wire
Exxon Mobil Corporation (NYSE:XOM) Chairman and CEO Rex Tillerson
told analysts today at the New York Stock Exchange that
ExxonMobil's financial strength, technological expertise, and
superior resource base allow it to meet the challenges of today's
increasing demand for energy while delivering industry-leading
returns. "The world's energy needs are expected to be nearly 50
percent greater by 2030 than they are today," said Tillerson. "Our
industry remains massive and very much a long-term,
capital-intensive business. Projects require years to develop, cost
billions of dollars to bring on stream, and they operate for
decades." The project inventory at year-end 2005 will develop 26
billion oil-equivalent barrels net to ExxonMobil. The company
expects to start up more than 20 new global projects in the next
three years to produce even more energy to fuel vehicles, light and
heat homes, and power businesses around the world. Investing in
Profitable Opportunities Tillerson pointed out that in 2005
ExxonMobil invested a record of nearly $18 billion into the
business. "Our investment strategy has remained consistent over the
years. It is not driven by short-term swings in commodity prices or
earnings. We are long-term driven and patient, and we are not
opportunity constrained," said Tillerson. "Standing back from the
annual spending patterns confirms the consistency of our approach
as we have invested more than we have earned over the last 15
years. "The growing trend in capital expenditures is a direct
result of the rich portfolio of investment opportunities in our
inventory, our ability to mature many world-class opportunities to
our investment standards and to successfully progress the execution
of these opportunities," he said. Technology Advantage Tillerson
believes that ExxonMobil's technology leadership continues to open
doors to resource opportunities through cost-effective solutions
for challenging environments and for frontier resources such as oil
sands, tight gas and extra-heavy oil. "In 2005, we spent more than
$700 million. Our five-year average (from 2000 thru 2004) exceeds
$600 million per year," said Tillerson. Delivering Superior Results
When it comes to delivering superior return on investments,
Tillerson pointed out that ExxonMobil led the industry in 2005 with
return on capital employed (ROCE) of 31 percent. "In our view, ROCE
continues to be the best overall measure of financial performance
given the long-term and capital-intensive nature of our industry. I
would be cautious of anyone who tries to deemphasize it," said
Tillerson. "Some seem to have focused on other metrics to guide
what they view to be in the best interest of their shareholders. As
I think is evident by the results of this past year, their
approaches such as buying or growing volumes simply for the sake of
increasing volumes does not produce superior returns," Tillerson
said. CAUTIONARY STATEMENT: Expectations and business plans in this
release are forward-looking statements. Actual future results,
including resource recoveries and project plans and schedules,
could differ materially due to changes in market conditions
affecting the oil and gas industry or long-term oil and gas price
levels; political or regulatory developments; reservoir
performance; timely completion of development projects; technical
or operating factors; and other factors discussed under the heading
"Risk Factors in Item 1A of ExxonMobil's most recent Form 10-K and
posted on our website (www.exxonmobil.com). References to the
"resource base" include quantities of oil and gas that are not yet
classified as proved reserves but that we believe will be produced
in the future.
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