Zinger Key Points
- ExxonMobil targets $20B earnings and $30B cash flow growth by 2030, supported by Pioneer synergies and lower-emissions investments.
- Plans include $20B in annual share repurchases (2025–2026) and $165B surplus cash, aiming for higher shareholder returns.
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Exxon Mobil Corporation XOM unveiled its Corporate Plan to 2030, targeting an additional $20 billion in earnings and $30 billion in cash flow over the next six years.
The 2030 goals include increasing Pioneer acquisition synergies by 50% to over $3 billion annually, growing new business earnings to $3 billion.
The company aims to boost upstream production to 5.4 million oil-equivalent barrels per day, with over 60% from advantaged assets.
The company plans to grow high-value product sales 80% versus 2024 that contribute over 40% of 2030 earnings potential for Product Solutions.
ExxonMobil is targeting up to $30 billion in lower-emissions investments and will allocate $27 billion – $29 billion in capex for 2025, with annual investments of $28 billion – $33 billion from 2026 to 2030, while reducing the reinvestment rate to 40%.
The company targets earnings CAGR of 10% and cash flow growth of 8%. Exxon aims to achieve $7 billion in structural cost savings by streamlining business processes, optimizing supply chains, improving maintenance turnaround processes, and modernizing IT and data management systems.
In 2025, the company plans cash capital expenditures of $27 billion – $29 billion, incorporating Pioneer Natural Resources and investments in new businesses, while maintaining flat base capital expenditures.
From 2026 to 2030, base capital spending remains steady, with growth driven by advancing long-term opportunities in new ventures and select large projects in traditional operations.
The reinvestment rate relative to projected cash flow is expected to decrease by 10 percentage points over the period.
Shareholder Returns: ExxonMobil projects $165 billion in surplus cash, driving higher shareholder returns.
The company plans $20 billion in share repurchases annually in 2025 and 2026, subject to market conditions.
Darren Woods, ExxonMobil Chairman and CEO, said, “We expect this capital to generate returns of more than 30% over the life of the investments. Strong investment returns have driven 42 consecutive years of annual dividend growth, a claim only 4% of the S&P 500 can make. This is why, when we list our capital allocation priorities, investing in accretive growth always comes first.”
Price Action: XOM shares are down 0.84% at $111.72 at the last check Wednesday.
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Photo: Del Henderson Jr. via Shutterstock.
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