ExxonMobil’s Capex cut is one of the smallest seen among supermajors so far
ExxonMobil (ticker: XOM) held an analyst meeting today, giving a presentation with the company’s expectations for 2015. The energy-major cut its capital budget for this year to $34 billion, a 12% cut from 2013, making it one of the smallest cuts for any large-cap company to date.
Pavel Molchanov of Raymond James Equity Research said, “While this (the 12% Capex cut) is a bit steeper than the 5-10% cut that we had anticipated, it is still easily one of the smallest cuts among large-caps in this downcycle.” The only large-cap companies to make smaller cuts to their capital budgets are YPF (3% cut), Statoil (8% cut), BP and Total (11% cut each).
During the company’s presentation, Rex Tillerson, Chairman and CEO of ExxonMobil, said that XOM continues to maintain its long-term view. “The oil and gas business is cyclical and we’ve been here before,” he said. “We have a relentless focus on things we control… We are always looking for ways to lower our cost structure and we expect to lead the cost curve especially under these conditions.”
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