Darren Woods -- Barron's

Dow Jones06-22

Woods slashed costs and spent money, despite skeptics. Now, Exxon is awash in low-cost oil. By Jack Hough

Exxon Mobil's next big find could be $14 billion of added earnings by 2027.

Some of these profits will come from cutting annual costs; CEO Darren Woods has already secured $9 billion in savings since 2019, and is looking for $6 billion more over the next few years.

More will come from growth. Over the past decade, Exxon has found so much oil in Guyana's coastal waters that it could turn the tiny South American country into the world's top producer per citizen -- with Exxon as the leading outside stakeholder.

Meanwhile, a recently completed acquisition of Pioneer Natural Resources gives Exxon more untapped acreage for its advanced drilling technology. And downstream from the wells, Woods is expanding refineries and integrating more chemical production to drive profitability. He's also building out a global network for shipping liquefied natural gas, while dabbling in carbon capture and lithium mining.

By pursuing a countercyclical investment strategy in recent years -- putting money to work during downturns and despite claims that fossil fuel is in decline -- Woods has given Exxon a financial edge. The vast majority of its oil and gas investments can earn yearly returns over 10% even at oil prices of $35 or less, versus a recent $80 for Texas crude. The barrel price needed to cover Exxon's dividend, recently 3.5%, is among the lowest in the group.

Write to Jack Hough at jack.hough@barrons.com

To subscribe to Barron's, visit http://www.barrons.com/subscribe

(END) Dow Jones Newswires

June 21, 2024 21:30 ET (01:30 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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Over the past decade, Exxon has found so much oil in Guyana's coastal waters that it could turn the tiny South American country into the world's top producer per citizen -- with Exxon as the leading outside stakeholder. \n</p>\n<p>\n     Meanwhile, a recently completed acquisition of Pioneer Natural Resources gives Exxon more untapped acreage for its advanced drilling technology. And downstream from the wells, Woods is expanding refineries and integrating more chemical production to drive profitability. He's also building out a global network for shipping liquefied natural gas, while dabbling in carbon capture and lithium mining. \n</p>\n<p>\n     By pursuing a countercyclical investment strategy in recent years -- putting money to work during downturns and despite claims that fossil fuel is in decline -- Woods has given Exxon a financial edge. 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Now, Exxon is awash in low-cost oil. By Jack Hough \n\n\n  Exxon Mobil's next big find could be $14 billion of added earnings by 2027. \n\n\n     Some ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999015341.SGD","symbol_name":"United Income Focus Trust Acc SGD-H","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2445717684","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2445717684","pubTimestamp":1719019800,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Woods slashed costs and spent money, despite skeptics. 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Now, Exxon is awash in low-cost oil. By Jack Hough \n\n\n  Exxon Mobil's next big find could be $14 billion of added earnings by 2027. \n\n\n     Some of these profits will come from cutting annual costs; CEO Darren Woods has already secured $9 billion in savings since 2019, and is looking for $6 billion more over the next few years. \n\n\n     More will come from growth. Over the past decade, Exxon has found so much oil in Guyana's coastal waters that it could turn the tiny South American country into the world's top producer per citizen -- with Exxon as the leading outside stakeholder. \n\n\n     Meanwhile, a recently completed acquisition of Pioneer Natural Resources gives Exxon more untapped acreage for its advanced drilling technology. And downstream from the wells, Woods is expanding refineries and integrating more chemical production to drive profitability. He's also building out a global network for shipping liquefied natural gas, while dabbling in carbon capture and lithium mining. \n\n\n     By pursuing a countercyclical investment strategy in recent years -- putting money to work during downturns and despite claims that fossil fuel is in decline -- Woods has given Exxon a financial edge. The vast majority of its oil and gas investments can earn yearly returns over 10% even at oil prices of $35 or less, versus a recent $80 for Texas crude. The barrel price needed to cover Exxon's dividend, recently 3.5%, is among the lowest in the group. \n\n\n     Write to Jack Hough at jack.hough@barrons.com \n\n\n \n\n\n  To subscribe to Barron's, visit http://www.barrons.com/subscribe \n\n\n  (END) Dow Jones Newswires\n\n\n  June 21, 2024 21:30 ET (01:30 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.1","shortVersion":"4.28.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2445717684"}