XOM Exxon Mobil Corp

By Tess Stynes 

Exxon Mobil Corp. reaffirmed plans to cut capital spending 25% this year, as the oil giant met with analysts Wednesday in New York.

The company's annual analyst meeting comes a month after Exxon Mobil posted its weakest annual results in more than a decade, making it one of several global oil giants to get smacked by a prolonged commodities rout. Exxon's annual earnings were cut in half to $16.2 billion, forcing the Irving, Texas, company to put its share-buyback plan on hold to preserve cash.

Exxon Mobil on Wednesday reiterated that it plans capital expenditures of roughly $23 billion this year, down from a reduced $31.1 billion in 2015. About a year ago, Exxon had projected its 2015 capital spending budget at $34 billion, a decline of 12% from 2014, but reined in spending as the year progressed.

In prepared remarks Wednesday, Exxon Mobil Chairman and Chief Executive Rex W. Tillerson said, "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals."

The comment comes two days after Exxon Mobil on Monday sold $12 billion of new bonds, one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies. However Exxon Mobil's borrowing costs relative to market benchmarks have risen since it sold bonds last year.

Exxon Mobil also said it is on track to start up 10 exploration-and-production projects in 2016 and 2017, and that the company is advancing several projects in other business segments.

The company also noted that its reduced its capital and operating costs by a net $12 billion last year, including a 9% decrease in unit costs in its exploration-and-production business.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

March 02, 2016 09:20 ET (14:20 GMT)

Exxon Mobil (NYSE:XOM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024

Exxon Mobil (NYSE:XOM)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024