(Finance) – Exxon Mobila major U.S. and global oil company, predicts that the production of oil and gas In the 2024 will be approximately 3.8 million barrels of oil equivalent per day, and will then increase to approximately 4.2 million barrels of oil equivalent per day by 2027, driven by growth in the Permian and Guyana. The company said it expects stable production through the end of this year, at 3.7 million barrels per day, due to its withdrawal from Russia.
The energy giant also announced that it intends to further reduce the structural costs by $6 billion by the end of 2027, bringing total structural cost savings to approximately $15 billion compared to 2019. Opportunities arising from consolidating value chains and centralizing key activities including maintenance, supply chain, procurement, financial reporting, planning, analysis and trading will enable further efficiency and effectiveness of execution.
The company now expects a total of capital expenditure annual and exploration expenditures of between $23 and $25 billion in 2024 and between $22 and $27 billion annually from 2025 to 2027, generating an average return of approximately 30%. The increase in capital investments from 2025 is driven by the growth in emissions reduction opportunities arising from Low Carbon solutions.
The increase in cash flow and earnings allows for further generation of cash surplus and a greater distribution to shareholders. The company remains on track to complete $17.5 billion in share repurchases in 2023 as part of its previously announced $35 billion repurchase program for 2023 and 2024. Once the merger with Pioneerthe program’s rate of progress in 2024 will be increased to $20 billion per year through 2025, assuming reasonable market conditions.