Engine No. 1 Activist Presentation Deck
We believe shareholders need a Board that will maintain a
consistent strategy of capital allocation discipline
●
While presented with great fanfare, ExxonMobil's near-term spending cuts came
as little surprise to analysts given ExxonMobil's deteriorating financial position
Company's Capex Cuts vs Pre-Existing Analyst Estimates
2021 2022 2023 2024 2025
17,000 20,769 21,236 20,349 19,442
11/30/20 Mid-Point XOM Guidance 17,500 22,500 22,500 22,500 22,500
9/30/20 Wall Street Estimates
• After our campaign began,
ExxonMobil further embraced the
language of spending discipline and
even abandoned near-term
production growth targets
●
However, the history that preceded
this creates serious doubt, as does
ExxonMobil's continued adherence
to a strategy solely predicated on
long-term growth in oil and gas
"All in, we think that the ... capex guidance
[is] not too surprising..."
JP Morgan, Nov. 30, 2020
"[M]ost investors are uncertain as to
whether XOM will stick to the $20-25B long-
term budget in a higher ... price environment."
JP Morgan, Jan. 19, 2021
"Despite the cuts, XOM continues ahead with
much the same slate of longer-term growth
projects in place."
Barclays, Feb. 26, 2021
Table Source: S&P Capital IQ annual capex estimates as of 9/30/2020. Quote sources: Phil Gresh (Nov. 30, 2020). Thoughts on Guidance Update. JP
Morgan. Phil Gresh (Jan. 19, 2021). Investor Feedback on Our Upgrade. JP Morgan. Jeanine Wai (Feb. 26, 2021). Why There's Still Legs Beyond the Current
Crude Rally. Barclays.
REENERGIZE
EXXON//
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