Engine No. 1 Activist Presentation Deck
Well before COVID, investors had turned against
aggressively chasing production growth ...
"[ExxonMobil] has taken a different stance to peers on capital spending, choosing to accelerate capex in
recent years instead of pulling back. This is clearly not in favour with investors ... This has resulted in
[ExxonMobil] materially underperforming peers."
RBC Capital Markets, March 6, 2020
"The sector's track record for overinvesting and destroying value, combined with concerns over the future
trajectory for oil demand, has meant that in recent years the market has rewarded those companies that
demonstrate capital discipline rather than the pursuit of growth."
Redburn, May 13, 2020
F
"CVX and XOM are thoroughly underway on two different corporate strategies: harvest free cash flow or
spend on countercylical growth. Starting well before the recent price collapse, CVX has been focused on
positioning its business for a 'lower for longer' commodity price environment through disciplined, returns-
focused investments, balance sheet strength and capital plan flexibility. XOM on the other hand continues
to pursue a countercyclical growth strategy."
Morgan Stanley, June 25, 2020
Sources: Biraj Borkhataria (Mar. 6, 2020). Exxon Mobil Corporation: Needing flawless execution & macro recovery. RBC Capital Markets. Peter Low (May 13,
2020). Oil Majors: The Road to Recovery. Redburn. Devin McDermott (Jun. 25, 2020). The Risks & Opportunities of Countercyclical Growth. Morgan Stanley.
REENERGIZE
EXXON//
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