Latest update November 29th, 2024 1:00 AM
We are deploying the best technology and experts for unprecedented results, maximising value from all fronts in Guyana – Exxon CFO
Kaieteur News – ExxonMobil Corporation’s Senior Vice President & Chief Financial Officer (CFO), Kathy Mikells recently disclosed that the oil giant is sparing no effort in maximising value from Guyana on all fronts, as quickly as possible.
Towards this end, Mikells said Exxon has launched an exercise that allows for the simultaneous execution of exploration, appraisal, and development activities in the Guyana basin, specifically at the Stabroek Block which has unlocked 11 billion barrels of oil equivalent resources.
ExxonMobil Corporation’s Senior Vice President & Chief Financial Officer (CFO), Kathy Mikells
She noted that the company’s approach has resulted in tremendous financial success, adding that there were two new discoveries this quarter, while two vessels continue production at rates that are above the investment basis. Mikells said, “Our technology, integration, and project management capabilities enable us to grow this unique asset at an industry-leading pace.”
Compared to the first quarter of 2022, the Chief Financial Officer said Exxon added about 300,000 oil equivalent barrels per day to global supply driven by 40% production growth in Guyana and the Permian and good operational performance. The Exxon official said this more than offset the impact of its divestments and the expropriation of Sakhalin-1 in Russia, with overall production volume up 160,000 oil-equivalent barrels per day.
Continuing on Guyana, Mikells was keen to note that Exxon achieved an average gross production rate of about 375,000 barrels per day in the first quarter from its Liza Phase 1 and Phase 2 developments, which continue to demonstrate excellent operating performance. By the end of 2027, she said Exxon is targeting to have a sixth floating, production, storage and offloading (FPSO) vessel online, thereby increasing total gross production capacity to over 1.2 million barrels per day.
The CFO proudly noted that the company was able to generate US$11.4 billion of free cash flow during the 2023 first quarter and deployed significant cash in line with capital allocation priorities. Mikells said, “We maintained our fortress balance sheet, with debt-to-capital remaining at 17% and net-debt to-capital coming down to 4%. We distributed US$8.1 billion to shareholders, including US$3.7 billion in dividends. We’re also on track to repurchase up to US$17.5 billion of shares this year.”
The CFO added, “Our strong balance sheet and cash position are especially valuable in the current high interest rate environment. They enable us to invest in our portfolio through the cycles, including growing our Low Carbon Solutions business and expanding our trading activities. They also allow us to return excess cash more consistently and efficiently to our shareholders.” Looking ahead to the second quarter, Mikells said Exxon expects the company’s annual average net production in 2023 to be about 3.7 million oil-equivalent barrels per day.
With respect to corporate and financing expenses, the official said these are expected to be around US$400 million in the second quarter. Mikells said too that Exxon anticipates an unfavourable working capital impact of about US$3 billion from seasonal cash tax payments which are higher due to record 2022 earnings. In closing, the CFO said management is proud of what its people accomplished this quarter, adding, “It’s their hard work and dedication that delivered these record results.”
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