Exxon is crushing its competition:
NY Times: Exxon, based in Irving, Tex., earned $45 billion in 2008, gave back $40 billion to its shareholders, invested $26 billion around the world, and managed to find more oil than it produced. It also outperformed all of its rivals, like Chevron and Royal Dutch Shell.
What did Exxon do better? According to its CEO, the company simply made better decisions. While BP says it might need to borrow money to maintain its dividend, Exxon expects to invest $150 billion over the next five years on capital expenditures. Part of that, again according to its CEO, Rex Tillerson, is because it didn’t go nuts with acquistions and investments last year when the price of oil over heated.
But the future might not be all that rosy warns the Journal:
Even so, investors and analysts continue to worry about Exxon’s ability to increase production by replacing dwindling fields with new supplies. Despite the planned 11% spending increase this year, Exxon projected production will grow 2% to 3% annually for the next five years. Production fell 6.2% last year. Even as Exxon showcased its financial strength Thursday — it had $32 billion in cash and only $7 billion in debt at the end of last year — the company’s stock fell with the broader market, dropping 5.3%.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.