One of the world’s largest publicly traded energy providers and chemical makers, ExxonMobil Corporation, said it generated $48 billion in cash flow from operations in 2021.
According to ExxonMobil, this is the highest level since 2012, covering more than equity investments, debt reduction and dividends.
In his recent publication Fourth Quarter Fiscal 2021 Earnings Reportthe company revealed that structural costs had been reduced by an additional $1.9 billion, bringing total savings to nearly $5 billion.
ExxonMobil noted that plans are underway to achieve net Scope 1 and 2 greenhouse gas emissions for operated assets by 2050, with plans to achieve net zero in the Permian Basin by 2030.
The company expects to meet its 2025 emissions reduction plans four years ahead of schedule. This includes a 15-20% reduction in greenhouse gas intensity of upstream operations; a 40-50% reduction in methane intensity; and a 35-45% reduction in flaring intensity across the company compared to 2016.
“Our effective response to the pandemic, our targeted investments during the down cycle and our structural cost savings have enabled us to take full advantage of the market recovery in 2021.
“Our new, streamlined corporate structure is another example of the steps we are taking to further strengthen our competitive advantages and increase shareholder value. We made great progress in 2021 and our plans going forward place us ahead in cash flow and earnings growth, operational performance and energy transition,” said Darren Woods, President and CEO of ExxonMobil.
Upstream, ExxonMobil revealed that crude oil realizations were up 8% from the third quarter, while natural gas realizations were up 63% from the previous quarter.
During the fourth quarter, the company’s board of directors approved the company’s business plan for 2022, with capital spending expected to be between $21 billion and $24 billion.
Beginning in the first quarter of 2022, the company initiated share buybacks associated with the previously announced buyback program of up to $10 billion over the next 12-24 months.
Meanwhile, effective April 1, 2022, Exxon will be organized around three business lines: its upstream oil and gas production unit, the combined refining and downstream chemicals business, and its latest energy transition business, called Low Carbon Solutions. .