Exxon Mobil To Cut 2016 Capital Spending By 25% To $2.3 Billion

Exxon Mobil Corp. said Wednesday it expects to cut 2016 capital spending by 25% to $23 billion. In a statement released ahead of an investor meeting, the company said it is planning to ride out the current commodity price cycle by focusing on fundamentals, investing selectively in its business and paying a growing dividend. "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals," Chief Executive Rex Tillerson said in the statement. The oil giant is on track to start up 10 new upstream projects this year and next that will add 450,000 oil-equivalent barrels a day of working-interest production capacity. Since 2012, the company has added 22 upstream projects, adding more than 940,000 oil-equivalent barrels a day of working-interest production capacity. It cut capital and cash operating costs by $12 billion in 2015. Shares were little changed in premarket trade, but are down 7.7% in the last 12 months, while the S&P 500 has lost 6.6%.