Guyana’s oil helps ExxonM give shareholders US$8B in second quarter

Aug 03, 2023 ExxonMobil, News, Oil & Gas

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…country is part of company’s master plan to deliver US$17B payout this year

Kaieteur News – Executives at ExxonMobil Corporation were pleased to disclose that oil operations at Guyana’s Stabroek Block are helping to ensure its promise to return excess cash to shareholders is honoured. Specifically, ExxonMobil’s Chairman, Darren Woods recently noted that the oil giant was able to pay out US$8B in cash during the 2023 second quarter. Woods said, “We continue to share our success with shareholders, distributing US$8B in cash during the quarter, including US$4.3B in share repurchases and US$3.7B in dividends.”

ExxonMobil’s Chief Financial Officer (CEO) and Senior Vice President, Kathy Mikells was also keen to note that the oil giant continues to target US$17.5B of share repurchases this year and has the ability to make tactical changes in its repurchase activity if necessary. Mikells said, “Our strong operational results coupled with a healthy balance sheet continue to provide us the flexibility to invest in profitable growth through the cycles and, more consistently return excess cash to our shareholders.”

Adding to her comments, her CEO, Woods, told shareholders that the company’s efforts to structurally improve its earnings power is paying off, as demonstrated during the quarter where it made US$7.9B in profits with help from Guyana’s fast-paced production in the Stabroek Block. In Guyana, Woods noted that Exxon has two major projects producing approximately 400,000 barrels of oil per day while noting that improvement plans are in the pipeline to surpass that level.

Woods said, “Our reorganizations, aggressive investments in advantaged projects, and significant reductions in cost are driving value and improving our competitive position. We’ve made great progress and have a clear line of sight to much more.”

In the back half of this year alone, Woods was pleased to share with their investors that the company is expected to bring on two advantaged projects: The expansion of a chemicals facility in Baytown, USA and the startup of Guyana’s third development project called Payara which is designed to produce 220,000 barrels of oil per day.

Notably, Payara is one of the many projects being managed by ExxonMobil Corporation,  and its partners, Hess Corporation, and CNOOC International. It is a monumental undertaking with an estimated cost of US$9B. This comprehensive project encompasses exploration, drilling, infrastructure development, and production facilities geared towards extracting and processing the oil reserves holding 600 million barrels of oil.

Once operational, Payara will complement two existing projects, Liza Phase One and Liza Phase Two, which already produce an impressive average of 400,000 gross barrels of oil per day. Furthermore, two other sanctioned developments, Yellowtail and Uaru, are poised to further strengthen Guyana’s energy sector, with the former set to launch in 2025 and the latter in 2026.

With Guyana in play, Woods said the company is better positioned than ever to realize exponential value for its shareholders.

The CEO said, “For the first time in our history, we have a corporate technology, projects, trading, supply chain, and business solutions organization allowing us to apply the best solutions and talent to our biggest opportunities. And, importantly, we are developing the most talented people in the industry, providing unrivaled opportunities to meet some of society’s greatest challenges.”

He added, “Their work is delivering exceptional results, driving industry-leading returns on investments, and growth in earnings and cash flow. This, in turn, allows us to distribute cash to shareholders through share repurchases and a sustained, competitive, and growing dividend while maintaining investments in industry advantaged projects…”

In summary, Woods said Exxon is pleased with the 2023 second quarter results, the progress it represents and the improved earnings power of the company. “We’re confident that we have the right strategy with the right leadership and best people to effectively execute it, delivering sustained growth in shareholder value,” Woods said.

Remarkably, the Stabroek Block which is revered as an industry leading and advantaged asset in Exxon’s portfolio spans 6.6 million acres. It is set to witness the deployment of six FPSOs (Floating Production Storage and Offloading vessels) with a combined gross production capacity exceeding a staggering 1.2 million barrels of oil per day by the end of 2027. The sheer scale of this endeavour demonstrates the potential for up to 10 FPSOs, showcasing Guyana’s immense recoverable resources of more than 11 billion barrels of oil equivalent.

As ExxonMobil and its partners continue their pursuit of accelerated energy excellence in Guyana, the Stabroek Block has emerged as a hotbed for oil exploration and production. Its substantial reserves of high-quality crude oil have positioned the region as a pivotal player in the country’s energy development, heralding a new era of prosperity and progress.

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• Chairman, Darren Woods, ExxonMobil Corporation, quarter, second

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