Exxon Mobil Set To Invest $50B

摘要

Exxon Mobil Corp. plans to invest $50 billion over five years to expand its U.S. oil-and-gas production facilities, the company said on Feb. 2, when it released its 2017 results, which included $8.4 billion in fourth-quarter earnings and $19 billion in income for the year. Chairman and CEO Darren Woods credited the effect of U.S. tax reform on its earnings, based on revalued deferred income-tax liabilities, for the size of the investment and for boosting the company's commitment to grow its U.S. business. He said Exxon Mobil gained $5.9 billion in fourth-quarter earnings due to the tax changes.The $50 billion is a "projection," noted Jeff Woodbury, vice president of investor relations, in an earnings call with analysts. "We clearly believe that the reform will make the investment climate more attractive," he said. The projected investment will be split, with two-thirds earmarked for its upstream business and the remainder for its downstream and chemical businesses. Further, about $2 billion will be used to build new manufacturing facilities, improve infrastructure and increase production in the Permian basin in West Texas and New Mexico. The funds will be spent on transportation infrastructure to support tripling daily production in the region to more than 600,000 barrels a day by 2025. "Tight oil production from the Delaware and Midland basins will increase five-fold in the same period," the company said of the West Texas basins.