Skip to content

Exxon Mobil Expands Share Buyback Program to $50bn

Sam Boughedda
Sam Boughedda trader
Updated 9 Dec 2022

On Thursday, Exxon Mobil (NYSE: XOM) announced it has expanded its share-repurchase program to $50 billion through 2024, including $15 billion in 2022.

new-recommended-broker-banner

YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The program was raised from the previous $30 billion through 2023, the Irving, Texas-based company said.

The buyback increase is part of the company’s five-year plan, which it outlined in the press release, which includes approximately $17 billion for lower-emission initiatives through 2027, annual capital investments remaining at $20-$25 billion through 2027, and earnings and cash flow growth expected to double by 2027, compared to 2019.

Top Broker Recommendation

YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

By the end of 2022, ExxonMobil said it expects to distribute approximately $30 billion to shareholders, including $15 billion in dividends and $15 billion in share repurchases.

“Our five-year plan is expected to drive leading business outcomes and is a continuation of the path that has delivered industry-leading results in 2022,” said Darren Woods, chairman and chief executive officer. “We view our success as an ‘and’ equation, one in which we can produce the energy and products society needs – and – be a leader in reducing greenhouse gas emissions from our own operations and also those from other companies.”

Exxon Mobil shares initially jumped following the release on Thursday, opening higher and climbing to $106.80 per share. However, it gave up the majority of those gains, closing the session at +0.74%.

With energy prices soaring in 2022, companies such as Exxon benefitted substantially, posting its highest profit in its 152-year history just over a month ago.

According to TipRanks, seven out of 12 analysts have a Buy rating on Exxon, with five at Hold. The average price target is $118.83, representing a potential 14% upside.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.