Exxon Mobil Corp.'s presentation to Wall Street oil analysts and investors recently was nearly as notable for what executives didn't say as for what they did. The nation's largest multinational oil company reported that benefits from the merger of Exxon and Mobil have been significantly greater than expected. Projected near-term synergies of $4.6 billion before taxes were 65% higher than originally projected and have grown by 20% from the numbers announced last December, said Lee Raymond, the company's chairman. "We are confident that the target capital productivity improvement of at least three ROCE [return on capital employed] points above Exxon's historic industry-leading levels can be achieved, with many of the initiatives to deliver this improvement already under way." Raymond did not announce an increase in E&P outlays, however. That differentiates the company not just from independents but also from BP, which raised its three-year upstream budget 13.5% this summer. "The quality of our upstream portfolio sets us apart from our competitors," Raymond said. "Its breadth and depth has made us profitable in the past, keeps us profitable now and assures that we will be profitable in the future." -Nick Snow
Recommended Reading
ONEOK to Build New Pipeline, Expand Capacity from Kansas to Denver
2024-07-18 - ONEOK plans to build a 230-mile refined products line from western Kansas to the Denver International Airport as part of a $480 million network upgrade.
Analysts: Long Canadian Rail Strike Could Exponentially Affect US NGLs, Crude
2024-08-21 - With the effects of Canada’s rail strike up in the air, the newly opened Trans Mountain Pipeline offers an alternative route for crude headed south.
Wilson: NGLs are America’s Other Energy Export Boom
2024-08-12 - Robust outlook, interested buyers, willing investors—what’s not to like as NGLs have become America's hottest export product?
Electricity and LNG Drive Midstream Growth as M&A Looms
2024-09-26 - The midstream sector sees surging global and domestic demand with fewer players left to offer ‘wellhead to water’ services.
Same Game, Fewer Players: Midstream M&A Stands Apart from E&P Sector
2024-07-15 - The midstream M&A market typically follows the E&P sector by a few months. But some aspects of the market are different this time around.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.