Exxon restructures divisions and packs up for Houston
NEW YORK (AP) — Exxon Mobil is restructuring its business into three divisions and moving its headquarters 250 miles south from Irving, Texas, to its campus north of Houston.
The oil giant said Monday it will combine its chemical and refining operations, while centralizing its technology and engineering and other other support services. It will also consolidate its exploration and drilling operations.
Exxon, whose sales for the year are expected to be close to $300 billion when it releases earnings Tuesday, says the reorganization will be effective April 1 and the move south will be complete sometime in the middle of 2023.
The company said its move to Houston will enhance its collaboration and integration.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” CEO Darren Woods said. “Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition.”
Shares of Exxon Mobil Corp. have surged about 25% this year in tandem with the rising price of crude, up about 17% per barrel in 2022.
Meanwhile, Exxon Mobil returned to a profit in its fourth quarter as demand for oil continues to improve.
The oil and natural gas company earned $8.87 billion, or $2.08 per share for the final three months of 2021. A year earlier it lost $20.07 billion, or $4.70 per share.
Removing certain items, earnings were $2.05 per share. Analysts polled by Zacks Investment Research expected a profit of $1.96 per share, on average.
Exxon does not adjust its reported results based on one-time events such as asset sales.
Exxon is capitalizing on a resurgence in oil demand following a slowdown during the pandemic. Crude is up 17% so far this year, and Exxon is up 24%.
“Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021,” Chairman and CEO Darren Woods said in a statement on Tuesday.
Fourth-quarter oil-equivalent production was 3.8 million barrels per day. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production increased 2% compared with the year-ago period.
Quarterly revenue surged to $84.97 billion from $46.54 billion. Wall Street was calling for revenue of $82.44 billion.