Exxon touts growth potential with eye toward dividend
By Ernest Scheyder
NEW YORK (Reuters) - Exxon Mobil Corp (XOM.N: Quote), the world's largest publicly traded oil producer, sought to reassure anxious investors on Wednesday about its growth potential, highlighting both short- and long-term projects executives said should continue to help fund the 106-year-old dividend.
"Our job is to compete and succeed in any market," new Chief Executive Officer Darren Woods said at the company's annual analyst day in New York.
Woods sought to assuage Wall Street concerns that Exxon has lagged Chevron Corp (CVX.N: Quote) and other peers in its ability to replace the oil and gas reserves it needs for future profitability.
It was a tough task, with analysts critical of the company's ability to sustain growth. Of 25 Wall Street analysts tracking Exxon, only five recommend buying its shares, less than a third of the 17 who advise buying Chevron's shares, according to Thomson Reuters data.
"Darren Woods did an effective job in laying out the story, but he was hamstrung by his predecessor's mistakes and the market's increasingly skeptical sentiment on the stock," Raymond James analyst Pavel Molchanov said.
Woods, who was meeting analysts for the first time since predecessor Rex Tillerson left in January to become U.S. secretary of state, sought to show Wall Street that the company's investment potential was positive.
Shares of Exxon rose 2 percent on Wednesday in line with the broader market, despite a drop in oil prices CLc1.
Exxon touted short-term projects in North Dakota and Texas, while pointing to larger endeavors in Russia, Qatar, the United Arab Emirates, Angola and Canada slated to come online later this year. Continued...