ExxonMobil sets ambitious mid-term goals: The US oil company aims to generate an annual profit of $14 billion by the end of 2027 through an increase in results and cash flow. This was announced by the company during a strategy update on Wednesday in Spring, Texas. The company continues to rely on fossil fuels and plans to expand its production of oil and gas.

In comparison to the last mid-term goals from 2019, which saw annual results improve by ten billion dollars, management is now pursuing more ambitious goals. Cost savings play a crucial role: By the end of 2027, costs are expected to be reduced by an additional six billion dollars, bringing total savings since 2019 to fifteen billion dollars.

A significant portion of the planned capital inflows will be invested in stock buybacks. After the planned acquisition of Pioneer Natural Resources in 2024, ExxonMobil plans to repurchase its own shares worth $20 billion per year. For this purpose, the oil company announced in October its intention to acquire the shale oil specialist. Including debts, the total volume of the transaction amounts to $64.5 billion. The closing is expected to take place in the first half of 2024.

ExxonMobil on track to repurchase own shares worth a total of $17.5 billion in 2023. This is part of the original plan to use a total of $35 billion for share buybacks in the current and upcoming years.

At the New York Stock Exchange, ExxonMobil shares lost 1.26 percent on Wednesday, reaching 99.17 US dollars. The planned mid-term goals also include a potential doubling of profit from the production business compared to 2019. The production volume of oil and gas is expected to increase from 3.8 million barrels of oil equivalent in 2024 to 4.2 million barrels in 2027.

This is where the new oil field in Guyana will also play an important role. ExxonMobil thus reaffirms its strategy to rely on fossil energy sources and expand oil and gas production. With ambitious goals for the next four years, the company hopes for a significant increase in the quality of results and cash flow. Despite efforts to reduce costs, the company continues to invest in share buybacks to increase value for its shareholders.