Exxon Sees 2011 Capital Expenditures Up 6% To $34 Bln |
Wall Street Journal - Mar 9, 2011 |
Exxon Mobil Corp. (XOM) said Wednesday it plans to boost its capital spending budget this year by more than 6% to $34 billion driven by rising investment in unconventional projects and to lift production between 3% and 4%.
In its annual presentation to analysts, the oil company said its production is expected to increase by 4% to 5% on average between 2009 and 2014. Those estimates include volume additions from U.S. natural-gas producer XTO Energy, which it acquired last year for $36 billion. Excluding XTO production, Exxon Mobil expects its production to grow between 2% and 3% per year from 2009 to 2013. The estimate was unchanged from the range the company had provided in the past.
"As result of high-quality projects and the successful integration of XTO volumes, growth is forecast to remain strong," Exxon Mobil Chief Executive Rex Tillerson told analysts.
Exxon Mobil its expects the natural decline rates of its oil and natural gas fields to be about 3% for the next few years, a significant improvement from to its historic rate of 5% to 6%, the company said. The figure reflects in part the effect the company's acquistion of XTO is going to have over the long term, Tillerson said.
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- Posted: 2011-03-09 14:06:54
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