ExxonMobil Corp., the world’s biggest publicly traded oil company, said it will reduce spending due to lower oil prices but will continue to look for acquisitions in a weak market.
The company said in a statement after it annual analyst meet that it anticipates capital spending of $23 billion in 2016, down 25 percent from 2015, but continues to selectively advance its investment portfolio, building upon attractive longer-term opportunities.
“We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals,” Chairman and Chief Executive Officer Rex Tillerson said in the statement.
According to the statement, ExxonMobil achieved a total net reduction of $12 billion in both capital and cash operating costs in 2015. Upstream total unit costs were down 9 percent from 2014 and refining unit cash costs were 15 percent lower than the industry average.
The oil giant is on track to start up 10 new Upstream projects in 2016 and 2017, adding 450,000 oil-equivalent barrels per day of working-interest production capacity, as it enhances resource value through production optimization, technology application and cost management.
“We are advancing several Downstream and Chemical projects to increase feedstock flexibility, produce higher-value products and expand logistics capabilities to strengthen our competitive advantage in these businesses,” Tillerson said.
ExxonMobil’s downstream and chemical businesses have the scale and integration across refining, lubricants and chemicals to maximize product value while driving operating efficiency. Approximately 80 percent of the company’s 5 million barrel-per-day refining capacity is integrated with chemical and lubricant manufacturing facilities, the statement said.
The company generated $33 billion of cash flow from operations and asset sales and $6.5 billion of free cash flow in 2015.