Exxon Mobil’s (NYSE:XOM) exit from Russia will affect 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 sort of 1%-2% of the overall denominator… that is what it’s,” Mikells mentioned throughout Exxon’s annual capital markets presentation, which emphasised plans to cut overall cash operating costs by $9B between 2019-23, or a 50% improve from targets the corporate launched a 12 months 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 practically $4.1B value of property in Russia.
Western sanctions imposed on Russia for its invasion of Ukraine will “degrade” Exxon’s potential to retain its property within the nation and “require a discontinuation of operations or suspension,” CEO Darren Woods mentioned.
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 mentioned it could actually drill ~10 new exploration wells offshore Guyana this 12 months and one other 10 subsequent 12 months.
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 superb chunk of that can be returned to shareholders,” Graham Grieder writes in a bullish new analysis published on Seeking Alpha.