Exxon Mobil’s (NYSE:XOM) exit from Russia will influence company-wide earnings and oil manufacturing by 1%-2%, CFO Kathryn Mikells informed analysts on Wednesday, as reported by Reuters.
“Of any stat you select, it is type of 1%-2% of the full denominator… that is what it’s,” Mikells stated throughout Exxon’s annual capital markets presentation, which emphasised plans to chop total money working prices by $9B between 2019-23, or a 50% enhance from targets the corporate launched a yr in the past.
The CFO didn’t cite a particular metric for the Russia hit and didn’t present particulars on a possible writedown on Exxon’s almost $4.1B price of belongings in Russia.
Western sanctions imposed on Russia for its invasion of Ukraine will “degrade” Exxon’s capacity to retain its belongings within the nation and “require a discontinuation of operations or suspension,” CEO Darren Woods stated.
Additionally, Exxon added 200K boe/day to its estimate for Guyana offshore manufacturing capability, now saying its partnership with Hess (NYSE:HES) and Cnooc may have capability to supply 1.2M boe/day of oil and gasoline by 2027; the corporate stated it might probably drill ~10 new exploration wells offshore Guyana this yr and one other 10 subsequent yr.
Exxon shares are “nonetheless a purchase at $110 oil,” as the corporate is “raking in billions in extra money as oil costs spike, [and] a great chunk of that can be returned to shareholders,” Graham Grieder writes in a bullish new evaluation printed on In search of Alpha.