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ExxonMobil Outlines Growth Strategy To More Than Double Earnings By 2025

ExxonMobil (XOM) outlined an aggressive growth strategy to more than double earnings and cash flow from operations by 2025 at today's oil prices. The Growth plans include steps to increase earnings by more than 100 percent - to $31 billion by 2025 at 2017 prices - from last year's adjusted profit of $15 billion, which excluded the impact of U.S. tax reform and impairments.

Darren Woods, chairman and chief executive officer, said, at the company's annual meeting of investment analysts, that the plan projects double-digit rates of return in all three segments of ExxonMobil's business - upstream, downstream and chemical - which are all three world-class businesses in their own right.

In the upstream, the company expects to significantly increase earnings through a number of growth initiatives involving low-cost-of-supply investments in U.S. tight oil, deepwater and liquefied natural gas (LNG). Growth coming online from new and existing projects is expected to increase production from 4 million oil-equivalent barrels per day to about 5 million.

The company plans to increase tight-oil production five-fold from the U.S. Permian Basin and start up 25 projects worldwide. Those startups will add volumes of more than 1 million oil-equivalent barrels per day. In LNG, the company expects to bring on new production to meet a projected increase in global demand.

Upstream growth will benefit from ExxonMobil's industry-leading exploration success and strategic acquisitions. In 2017 alone, the company added 10 billion oil-equivalent barrels to its resource base in locations including the Permian, Guyana, Mozambique, Papua New Guinea and Brazil.

ExxonMobil's downstream business is projected to double earnings by 2025 by upgrading its product slate through strategic investments at refineries in Baytown and Beaumont in Texas and Baton Rouge, Louisiana, Rotterdam, Antwerp, Singapore, and Fawley in the U.K.

The company noted that it has the potential to increase its return on capital employed to about 15 percent by 2025.

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