Exxon sticks to paying debts as peers revive share buybacks

Exxon sticks to paying debts as peers revive share buybacks

Bloomberg

Exxon Mobil Corp’s knockout second-quarter results did little to entice investors because much of the extra cash coming from soaring energy and petrochemical prices will be used to pay down debt rather than reward shareholders. The oil giant and rival Chevron Corp swung to their biggest profits since pre-pandemic days, fuelled in large part by stellar performances from their chemicals units. But the legacy of 2020’s near-40% jump in net debt was all too clear for Exxon, with Chief Executive Officer Darren Woods prioritising balance sheet repair over share buybacks. Exxon stock slumped more than 2%. Chevron joined European rivals Royal Dutch Shell Plc, TotalEnergies SE and Eni SpA in reviving buybacks, seen as an important mechanism for returning high commodity prices directly to investors. Exxon’s Woods said investors’ “explicit feedback” would be incorporated into strategic planning after he lost a proxy battle that saw a quarter of directors replaced earlier this year. He was non-committal when asked whether this meant additional shareholder returns. “I wouldn’t see huge shifts in the strategy but you may see accelerations, additional emphasis in areas,” Woods said during a conference call with analysts. “Restoring the strength of our balance sheet, returning debt to levels