Exxon Adapts to Falling Prices | Russell T. Rudy Energy LLC
“Rigzone” reports that Exxon’s fourth quarter earnings fell 21%, largely due to falling oil prices. However, reduced oil and gas production was partially offset by $1 billion in deferrals on income taxes, a favorable arbitration ruling in its case against Venezuela for expropriation of assets, and better than expected earnings in its chemicals unit.
In response to hard times in the oil patch, the company will reduce its stock buyback program from $3 billion last quarter to only $1 billion in the first quarter of this year. However, to put this in perspective, Chevron announced last week that it is suspending its buyback program.
Exxon will announce their revised capital expenditures budget on March 4, but Jeff Woodbury, VP-Investor Relations, indicated that their investment plans will not change very much because they are based on long term considerations. He went on to say “We’ll keep a close eye on our cash flow, maintain our investment discipline, and of course our commitment to the growing dividend”.
In a contrarian move, Exxon increased its number of drilling rigs in oil basins such as the Bakken and Permian from 39 in the third quarter of 2014 to 44.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=137029&utm .
