Business

February 27, 2014

Exxon to trim capital spending in coming years

Absent new projects, the Irving-based oil giant expects production to decline 3 percent over the next few years.

Irving-based Exxon Mobil said in a regulatory filing that it expects capital spending of about $37 billion annually over the next several years, compared with $42.5 billion in 2013.

The global oil and gas producer, which owns Fort Worth’s XTO Energy, said its spending outlays “could vary depending on the progress of individual projects and property acquisitions,” according to a filing with the Securities and Exchange Commission. Most of that spending is in exploration and production, with about 75 percent overseas.

In a Jan. 30 earnings call, David Rosenthal, vice president of investor relations, told financial analysts that the company has “been in a very capital-intensive mode” that would pay off in higher production.

While the company more than replaced its production last year with new reserves, it said in the SEC filing that absent new projects, its production “is expected to decline at an average of approximately 3 percent over the next few years.” That figure would vary given contract terms that change the company’s share of production based on market prices.

Exxon said cash provided by its operating activities totaled $44.9 billion in 2013, down $11.3 billion from 2012. It finished the year with the equivalent of 16.7 billion barrels of proved oil reserves and 8.5 billion of proved undeveloped reserves.

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