ExxonMobil's 2030 Plan Targets $20 Billion Earnings Growth

2024-12-12 companies

Irving, Wednesday, 11 December 2024.
ExxonMobil’s 2030 plan aims for $20 billion in earnings growth and $30 billion in cash flow through synergies, cost savings, and investments in lower emissions.

Strategic Growth and Synergies

ExxonMobil (NYSE: XOM) unveiled its ambitious corporate strategy on December 10, 2024, detailing plans through 2030 [1][2]. The energy giant expects to increase Pioneer acquisition synergies by over 50% to more than $3 billion annually [1]. The company plans to achieve an additional $7 billion in structural cost savings compared to Q3 2024 levels, building upon the $11.3 billion in savings already achieved through September 2024 [1][3].

Production and Revenue Targets

The company aims to boost its upstream production to 5.4 million oil-equivalent barrels per day by 2030, with over 60% coming from advantaged assets [1]. In Guyana, ExxonMobil projects reaching a total production capacity of 1.7 million barrels per day, with gross production of 1.3 million barrels per day by 2030 [2]. The company’s Product Solutions business targets a 10% compound annual growth rate, with plans to increase high-value product sales by 80% compared to 2024 levels [1][4].

Low-Carbon Initiatives

As part of its sustainability commitment, ExxonMobil plans to invest up to $30 billion in lower emissions opportunities between 2025 and 2030 [1]. The company’s Low Carbon Solutions business is expected to contribute an additional $2 billion to earnings by 2030 compared to 2024 levels [5]. A significant development includes plans for what could become the world’s largest low-carbon hydrogen facility in Baytown, with the potential to produce up to 1 billion cubic feet of virtually carbon-free hydrogen per day [2].

Capital Allocation and Shareholder Returns

The company has outlined specific capital expenditure plans, with cash capex projected at $27-29 billion for 2025 and $28-33 billion annually from 2026 to 2030 [1][2]. ExxonMobil has also announced plans to maintain share repurchases at $20 billion annually in 2025, with an additional $20 billion planned for 2026 [5]. These investments and returns are based on assumed price points of $65 per barrel Brent crude and $3 per million British thermal units Henry Hub gas [1].

Sources

ExxonMobil strategic plan