Exxon Mobil CEO announces $50 billion investment in US production and jobs, credits tax cuts

Exxon Mobil Corp. CEO Darren Woods announced in a blog post Monday that his organization will invest $50 billion in the United States over the next five years.

Woods credited both recent regulatory reform and the corporate tax rate cut that President Donald Trump signed into law last month for the company’s expansion plans. The tax rate was cut from 35 percent to 21 percent.

“These are all possible because of the resource base developed by our industry along with sound tax and regulatory policies that create a pro-growth business climate here in the U.S.,” Woods wrote.

Woods took over the helm at Exxon Mobil following the resignation of longtime former chief Rex Tillerson who resigned to become U.S. secretary of state last January.

The company says its growth is creating tens of thousands of high-paying jobs.

“These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries,” Woods wrote.

Exxon Mobil plans to increase oil production in the “Permian Basin in West Texas and New Mexico, expand existing operations, improve infrastructure and build new manufacturing sites,” Woods wrote.

“These are quality investments for our shareholders that are made even better by tax reform,” Woods wrote. “That’s good news if you‘re among the millions of Americans who own ExxonMobil stock directly or have indirect ownership through the many public pension funds, mutual funds or exchange-traded funds that are ExxonMobil owners.”

More than $35 billion of that amount is for projects not previously announced, company spokesman Scott Silvestri told Reuters.

The latest announcement is in addition to the company’s pledge, last spring, to invest $20 billion in chemical and oil refining on the U.S. Gulf Coast over 10 years.

“We’re actively evaluating the impact of the lower tax rate on the economics of several other projects currently in the planning stages to further expand our facilities along the Gulf Coast,” Woods said.

On Tuesday, Exxon Mobil stock was trading at nearly $88 per share, up slightly from the same time last year. The stock’s 52-week high was $89.30, and its 52-week low was $76.05.

And crude oil was trading up at more than $64 per barrel, up more than 24 percent over last year at the same time with a 52-week low of $42.06.

The company is scheduled to release its fourth quarter and full year 2017 financial results Feb. 2.

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