Hedge fund that beat ExxonMobil says it will have to cut oil output

Hedge fund that beat ExxonMobil says it will have to cut oil output

The activist investors who invoked the perils of climate change to win a stunning proxy battle against ExxonMobil this week said the supermajor would need to cut oil production, indicating they would keep pressing management to shift strategy in response to the shareholder vote.

"They need to position themselves for success,“ said Charlie Penner, who ran hedge fund Engine No 1's campaign against the company. "You would certainly believe that would mean less oil and gas production going forward.“

Engine No 1, named after a firehouse sign in San Francisco, launched its audacious effort in December, nominating four directors to Exxon's board and warning of the "existential risk“ posed by its commitment to fossil fuels.

The show of chutzpah pitted a hedge fund founded last year against the world's most famous oil company, with colossal geopolitical heft and financial clout.

One of Wall Street's most expensive proxy fights culminated in Wednesday's unusual annual meeting, when ExxonMobil attempted what critics described as the company's version of a senatorial filibuster, delaying the closure of voting while it held an impromptu hour-long break before chief executive Darren Woods fielded questions about the company's strategy.

It was the first time Exxon had dealt with a contested shareholder vote of