ExxonMobil (NYSE: XOM) is working on a bold plan to double its earnings by 2027. The oil giant began working on that strategy in 2019. While it faced a notable speed bump the following year when oil prices crashed during the early days of the pandemic, it's well on its way to delivering on its plan.
ExxonMobil plans to drive up capital spending over the next four years, increasing oil and gas production and raising outlays for its low-carbon energy division after a period of self-imposed austerity following a 2020 commodity price crash. The largest US oil company by sales said it expected annual capital and exploration expenditure of $23bn-$25bn in 2024, rising to $22bn-$27bn from 2025 to 2027. Exxon is in the process of closing a $60bn deal for Pioneer Natural Resources, the biggest producer in the Permian.
As Alaska Airlines (ALK) is set to buy Hawaiian Airlines (HA) for $1.9 billion, the Federal Trade Commission (FTC) is investigating Exxon's (XOM) planned merger with Pioneer Natural Resources (PXD). S&P Global Market Intelligence Editorial Lead Joe Mantone examines M&A activity in 2023, discussing with Yahoo Finance the conditions that could boost or hurt M&A forecasts for the new year. "Something that could help M&A in 2024 is if... [interest rates] stop rising, if they stay at an elevated rate without increasing, that can help boost M&A activity," Mantone says. "Just because buyers have a better idea of what their financing is going to cost." Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.