Exxon Mobil (Exxon stock) revealed its new business strategy on Thursday, which includes the acceleration of its stock repurchases and mitigating the company’s contribution to the production of greenhouse gases. The value of its stock is increasing.

As a result of “high-return, low-cost-of-supply projects,” Exxon (NYSE:XOM) stated on Thursday that the strategy could more than double the potential for earnings and cash flow by 2027 in comparison to 2019.

According to the company’s statement, “upstream production is forecast to expand by 500,000 oil-equivalent barrels per day to 4.2 million oil-equivalent barrels per day by the year 2027.” more than half of the total is expected to come from the liquefied natural gas projects that the corporation is investing in, which are located in Brazil, Guyana, and the Permian Basin in the United States.

According to Exxon, its near-term investments are anticipated to maintain production at around 3.7 million barrels of oil equivalent per day in 2023, presuming that the price of Brent will average $60 per barrel. It is anticipated that investments will fall between $23 billion and $25 billion in 2023.

Additionally, the corporation will increase the amount it would spend to repurchase its shares from $30 billion to $50 billion through 2024.

According to comments made by the company’s chief executive officer, Darren Woods, in a news release, “We view our success as an equation in which we can produce the energy and products society needs while also being a leader in reducing greenhouse gas emissions from both our operations and those of other companies.”

According to comments made by the company’s chief executive officer, Darren Woods, in a news release, “We view our success as an equation in which we can produce the energy and products society needs while also being a leader in reducing greenhouse gas emissions from both our operations and those of other companies.”

Exxon Stock Price

Exxon stock gained 2.2%, This year, and the share price of the company has increased by 69% as of trading on Thursday.

In the meantime, Chevron CVX +0.59% (CVX) said on Wednesday that its capital spending budget for the year 2023 will be $17 billion, an increase of more than 25% from what was projected to be spent in 2022. This figure does not account for acquisitions.

In a news release, the chief executive officer of Chevron, Mike Wirth, stated that the company’s capital expenditure forecasts for the year 2023 are “compatible with our long-term ambitions to provide higher returns and reduced carbon safely.”

In the premarket trading session, shares of Chevron were up 1.5% and had increased by 47% this year.

 

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