Exxon warns activist investorâs plan threatens dividend By Scott Deveau and Kevin Crowley on 3/16/2021
HOUSTON (Bloomberg) Exxon Mobil Corp. said proposals put forth by an activist investor pushing for changes at the oil giant threaten future cash flows and the sustainability of its dividend.
Exxon said in a letter to shareholders Tuesday that Engine No. 1âs approach ignores the role oil and natural gas will play in the future, and the leadership role the oil giant intends to take in reducing emissions through the development of lower-carbon technologies.
Exxon Mobil CEO Darren Woods
âTo put it bluntly, we have a plan that will grow earnings and cash flow, pay and grow the dividend, fund future growth and position the company to have a meaningful role in the energy transition. Engine No. 1 does not, â Chief Executive Officer Darren Woods and lead director Kenneth Frazier said in the letter.
Exxon to Hold Output at 20-Year Low to Address Debt, Emissions
Bloomberg 3/3/2021 Kevin Crowley
(Bloomberg) Exxon Mobil Corp. pledged to hold oil production at a two-decade low as part of a plan to reduce debt, boost dividends and address shareholders’ concerns about its record as one of America’s biggest corporate polluters.
The oil giant will produce the equivalent of 3.7 million barrels a day by 2025, about the same level as this year, after aggressively cutting investment in new projects to focus on rebuilding cash flow.
That’s down about 18% from Exxon’s 2011 peak, when it sat atop the S&P 500 Index, and the lowest since the late-1990s takeover of Mobil Corp., according to Bloomberg data. By contrast, Exxon’s pre-pandemic plan, first laid out to Wall Street three years ago, would have ballooned daily production to 5 million barrels.
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