Energy Rises As Oil Gains Offset Exxon, BP Losses -- Energy Roundup

Energy Rises As Oil Gains Offset Exxon, BP Losses -- Energy Roundup

In a statement welcoming Wan Zulkiflee, Exxon Mobil chairman and chief executive officer Darren Woods expressed confidence that the Malaysian's extensive corporate experience will have a positive impact on the U.S. company.

Demand for oil evaporated in early 2020 as governments imposed travel restrictions and stay-at-home orders to slow the COVID-19 pandemic's spread. Chevron last week reported a surprise $11 million fourth-quarter loss as low margins on fuel, acquisition costs and foreign currency effects overwhelmed improved drilling results.

Exxon has an equity share in about one-fifth of global Carbon dioxide capture capacity and has captured approximately 40 percent of all the captured anthropogenic Carbon dioxide in the world, the company's website states. It suffered one of its worst financial performances in its history in 2020 and has already recorded more than $ 2 billion in losses in the first three quarters of 2020.

"The turnaround story will take some time", said Biraj Borkhataria, analyst with RBC Capital Markets, noting that the company is not yet covering its dividend and capital spending with cash from operations. Some institutional investors and ecological gatherings are additionally pushing Exxon and different organizations to cut outflows from their tasks and the utilization of their items. Revenue is expected to fall 27.6% to $48.6 billion. Spending will rise to as much as $25 billion from 2022 through 2025, he said.

The company's fourth-quarter results included more than $19 billion in impairments.

It projects a doubling of Permian Basin output to 700,000 barrels per day by 2025, down from the million-barrel target it previously had expected to hit by 2024 in the top USA shale field, Woods said.

Despite inevitable antitrust concerns, the companies could argue a merger would represent the United States' best shot at taking on the Saudi state-owned conglomerate and the world's other largest state-backed oil producers, one of the sources said. For the full year, it lost 22.4 billion dollars (£16.39 billion).

Exxon said Monday in a statement it will "commercialize" its low-carbon technology initiatives through a new venture called ExxonMobil Low Carbon Solutions.

A handful of sizable oil and gas deals were completed past year, including Chevron's $5 billion takeover of Noble Energy Inc. and ConocoPhillips' roughly $10 billion takeover of Concho Resources Inc., but nothing close to the scale of combining San Ramon, California-based Chevron and Irving, Texas-based ExxonMobil.

But Engine No. 1 said the move was not enough, saying shareholders "deserve a Board that works proactively to create long-term value, not defensively in the face of deteriorating returns and the threat of losing their seats".

Last week, Engine No. 1 nominated four candidates for Exxon's board of directors, which will be chosen in May.

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