Exxon Mobil Corp. said on Wednesday that it expects 2015 capital spending of $34 billion, down 12% from a year ago, but plans to increase production volumes by 2% to 4.1 million oil-equivalent barrels per day. The oil and gas giant said it expects capital and exploration spending to average less than $34 billion in 2016 and 2017, while production is seen increasing to 4.3 million oil-equivalent barrels per day by 2017. "We are capturing savings in raw materials, service, and construction costs," Chief Executive Rex Tillerson said, speaking at a gathering of analysts. "The lower capital outlook also reflects actions we are taking to improve our set of opportunities while enhancing specific terms and conditions and optimizing development plans." The stock, a component of Dow Jones Industrial Average, inched up less than 0.1% in premarket trade. It has lost 7.2% in the past three months, while the Dow has gained 1.7%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below