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Exxon is slashing its capital spending this year by 25%

Akin Oyedele   

Exxon is slashing its capital spending this year by 25%
Stock Market1 min read

ExxonMobil is cutting its capital-spending plans for the year.

In a statement Wednesday, the oil and gas giant announced it would spend $23 billion in 2016, down 25% from last year.

The company is holding its annual analyst meeting in New York.

Exxon still plans to start 10 new drilling projects during the next two years.

The statement went on to note how the company had been trying to maximize value for shareholders by increasing dividend payments over the past 33 years. This is a timely reassurance, since many other oil and gas companies have recently been forced to cut dividends or scrap them altogether.

The focus for many companies in the energy sector right now is on liquidity and maintaining a healthy balance sheet, as revenues from oil and gas drilling shrink.

Exxon last month reported declines in fourth-quarter profits and revenues, even as its oil and gas output rose.

Shares were little changed in premarket trading. They have lost 8% over the past year.

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