Exxon update - more savings, moderate Permian growth, more carbon capture

Key Facts

David McNew/Getty Images News Exxon (NYSE:XOM) released an updated capital markets presentation ahead of the open Wednesday, raising cost savings guidance, moderating Permian growth expectations, and focusing investors on opportunities in carbon capture: * Costs - the Company plans to reduce cash operating costs by $9.0b between 2019 and 2023, this represents a 50% increased from targets released during the 2021 capital markets day.
- Permian 2027 - from 2022 through 2027, the Company plans to grow Permian production at a compound annual growth rate of 8%, lending credibility to claims by Pioneer (NYSE:PXD) and Devon (NYSE:DVN) that accelerated Permian production growth from the majors in 2022 is driven by DUC draw downs.
Management eluded to improved cost-savings guidance during the Q4 results conference call; however, adding 50% to cash cost savings targets is likely to be taken well by the market.
Moderated Permian growth expectations are certainly notable; however, likely to be more a focus for macro barrel counters (NYSEARCA:USO) than investors, as the difference will have little impact on Exxon (XOM) results.