Engine No. 1 Activist Presentation Deck
Clinging to plans until forced to change is not a strategy
ExxonMobil finally acknowledged in late 2020 that it could not continue spending
at its projected levels without adding more debt, yet hedged just days later
ā
MARCH 6, 2019
"The biggest risk to the industry
today is underinvestment. The
IEA estimates that $21 trillion of
investments are needed through
2040. If you take [our] relative
production, it suggests that we
should be investing at roughly $33
billion a year." - CEO
2019
SEPTEMBER 7, 2020
"Analysts said that
[ExxonMobil] must
dial back. Project
outlays next year
could drop to between
$10.4 billion and $15
billion..." - Reuters
"Exxon Mobil Corp. tumbled more than any other
blue-chip stock after boosting spending to heights
not seen since the historic oil-market collapse
began in 2014, bucking the cost-cutting trend
among rival energy explorers."
Bloomberg, March 6, 2019
NOVEMBER 25, 2020
"Exxon hasn't canceled any
projects because of the
pandemic, only delayed them...
'The fundamentals haven't
changed; the only thing that
has changed is timing'..."
Wall Street Journal (quoting
company IR)
2020
MARCH 05, 2020
Cuts 2020-2021 Capex
due to COVID, but
reaffirms $30-35 billion
target for 2022-2025
DECEMBER 1, 2020
"I don't think our plans have
changed dramatically. The plans
that we laid out, which was an
aggressive organic investment
program... So we're on the
same path. It's just delayed
a little bit." - Mgmt Committee
Member, and Head of Upstream
OCTOBER 12, 2020
CNBC reports an
activist may call
for spending cuts
Quote sources: ExxonMobil CEO (Mar. 6, 2019). 2019 Investor Day. Kevin Crowley (March 6, 2019). ExxonMobil Boosts Spending to $32 billion, Raises 2025
Profit Target. Bloomberg. Jennifer Hiller (Sep. 7, 2020). Exxon downsizes global empire as Wall Street worries about dividend. Reuters. Christopher Matthews
(Nov. 25, 2020). Exxon Documents Reveal More Pessimistic Outlook for Oil Prices. WSJ. Avi Salzman (Dec. 1, 2020). Exxon Is Retrenching. A Top Executive
Defends the Strategy. Barron's.
2021
NOVEMBER 30, 2020
ExxonMobil cuts 2022-
2025 Capex Guidance
to $20-$25 billion
REENERGIZE
EXXON//
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