By Ernest Scheyder
Some of the biggest bets taken by his predecessor RexTillerson, now the
That leaves Woods facing the prospect of slow growth andbillions of dollars in new spending that could weigh on resultsfor years. In 2018, the company plans capital spending of about
Rivals including Royal Dutch Shell and Chevron, by contrast, have capped or cut their spending afterfinishing expansion projects. Exxon shares are down 18 percentsince Woods took over in January 2017. Shell is up 2 percent andChevron is down about 3 percent during the same period.
Woods is feeling the heat from investors who could have mademore if they held shares in Exxon's rivals, as well as activistinvestors who want to see the company take renewable energy moreseriously. Analysts are pushing for more transparency onoperations, and some have called for Woods to sell assets.
Exxon declined to comment. A State Department spokespersonsaid Tillerson would have no comment on Exxon matters andreferred questions to the company.
Exxon is set to host its annual analyst meeting in
The firm took the
Exxon also took
"There's no question that, over the past handful of years,Exxon has been a relative underperformer," said Hank Smith,co-chief investment officer of the Haverford Trust, which hasheld Exxon's shares for two decades and recently added RoyalDutch Shell to its portfolio. "It's been frustrating."
'EPIC FAIL'
Weak results from production have this year cost Exxon itsstanding as the oil major generating the most cash, adistinction that now goes to Shell.
Now, Exxon is spending more cash on projects that will taketime to produce.
In
More spending awaits Exxon in
Exxon paid more than
With all Woods' development plans, it seems unlikely Exxon'scapital spending will decline after this year, said Simmons & Coanalyst Guy Baber.
The company did reverse some of the write-downs it took onreserves as oil prices rose. But the company's inability totranslate those gains into robust profits in the final quarterof 2017 was an "epic fail," said Raymond James oil analyst PavelMolchanov.
LITTLE DATA FOR INVESTORS
Some investors say it's too soon to evaluate Woods' tenuredespite Exxon's lagging returns.
"There are few decisions that any one person, let aloneWoods, could make in the first 12 to 13 months that would beable to really affect the company," said Mark Stoeckle,portfolio manager of Adams Natural Resources Fund Inc,which holds Exxon's shares.
Exxon retains supporters on Wall Street. Its shares arerecommended for purchase by 29 percent of the 24 analysts thatcover the company, according to Thomson Reuters data. Half ratethe shares as a "hold" and five advise "sell."
Analysts recommending the stock cite the strength of Exxon'sassets.
Others, however, want more information on Exxon'soperations. Of the world's five largest publicly traded oilproducers, Exxon ranks last for providing detailed data toinvestors, while BP Plc is the best, according to ananalysis of quarterly earnings regulatory filings by investmentresearcher Redburn Ltd.
BP and Shell, for example, offer more than twice as muchdata as Exxon on each segment of operations, Redburn found.
"Exxon Mobil's greatest challenge for 2018 might not itsvaluation, assets or growth, but opening up to investors," saidRedburn oil and gas analyst Rob West.
(Reporting by Ernest ScheyderEditing by Gary McWilliams, Simon Webb and Brian Thevenot)