Nov. 30, 2020 5:22 PM ETExxon Mobil Corporation (XOM)By: Stephen Alpher, SA News Editor4 Comments
On top of cost savings that are seen at $10B, or 30% of capital spending and 15% of cash operating expenses this year, Exxon (NYSE:XOM) sees 15% global workforce reductions by the end of 2021.
Capital spending next year is seen at $16B-$19B, and then $20B-$25B annually through 2025.
Elimination of less strategic assets like certain dry gas resources in the Appalachian and Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas in the United States, and in western Canada and Argentina. A non-cash, after-tax charge of $17B-$20B is expected in Q4 - likely the largest ever seen in the oil industry.
CEO Darren Woods: "Recent exploration success and reductions in development costs of strategic investments have further enhanced the value of our industry-leading investment portfolio ... Continued emphasis on high-grading the asset base - through exploration, divestment and prioritization of advantaged development opportunities - will improve earnings power and cash generation, and rebuild balance sheet capacity to manage future commodity price cycles while working to maintain a reliable dividend."
More: "Prices and margins for many of our businesses have improved from the third quarter and when coupled with continuing efforts to reduce spending and capture additional efficiencies, quarter-to-date cash flow has improved versus our plan assumptions."
Source: Press Release
https://seekingalpha.com/news/3640152-exxon-review-completed-plans-15-workforce-cut-end-of-2021?mail_subject=xom-exxon-review-completed-plans-15-workforce-cut-by-end-of-2021&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha