In a recent corporate update, ExxonMobil (XOM) presented a positive outlook for its growth and cost savings initiatives. According to Goldman Energy specialist, Adam Wijaya, several key points stood out from the update.

Firstly, XOM’s Permian growth profile continues to exceed expectations, with the company raising its 2030 volumes from 2.3 MBOE/d to 2.5 MBOE/d through the use of technology and proppant. This highlights XOM’s commitment to maximizing production in this highly profitable region.

Secondly, the company’s cost savings initiatives are making significant progress, with $18 billion in savings raised to $20 billion by 2030. While some have questioned whether these savings are reflected in the multiple, XOM’s efforts to reduce costs are undoubtedly noteworthy.

Thirdly, the company’s data center initiatives were met with some generalist inbounds, but the highlight was the downside to low carbon capex highlighted, including the suspension of Baytown low carbon hydrogen as a starting point. This underscores XOM’s commitment to sustainability and its willingness to adapt to changing market conditions.

Finally, XOM’s buyback program remains strong, with the company sticking to its $20 billion target for 2026 and beyond. While some have expressed concerns about the potential downside of repurchases in a worst-case oil scenario, XOM’s commitment to shareholder value is clear.