Streetview: Exxon turns attention to low-carbon spend

Pioneer Natural Resources Co

07/12/2023 15:51

(Updates)
    ** Oil major Exxon Mobil  XOM.N  shares up 1.34% at $100.46
after company on Wednesday forecast an 18% increase in spending
to develop lithium and low carbon initiatives through 2027
    ** Co's outlook, however, excludes expected gains from deal
to acquire Permian Basin peer Pioneer Natural Resources  PXD.N ,
expected to close by 1H2024
    
    LOW CARBON INITIATIVES IN FOCUS
    ** Brokerage Jefferies (PT: $145) says update matched
expectations, market focus is on "capex/ opex, low carbon,
buybacks and upstream targets"
    ** Jefferies says half of low carbon capex focused on
reducing third party emissions, which support co's reduction
target of >50mtpa by 2030
    ** HSBC Global Research (PT cut to $113 from $119, "hold"
maintained) estimates co's low-carbon capex on CCS, hydrogen,
biofuels and lithium to rise to ~10% of group spending by 2027,
considerably lower that of European peers
    ** RBC Capital Markets (PT: $120) said "update largely
confirms our thesis that capex is set to move higher over time,
however the ramp into 2024 looks more modest than we
anticipated,"

    

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))