Exxon Mobil's (NYSE:XOM) plan to sell billions of dollars in assets may pave the way for the company to return cash to stockholders through a long-awaited share buyback program.
On Wednesday, the energy giant forecast it could generate $15 billion in cash through 2025 by selling assets. Woods say the company expects some of that cash will go towards repurchasing stock from shareholders.
But today, the company's main priority is reinvesting in its business and replenishing its oil and natural gas reserves.
CEO Darren Woods told the media then, "We've got a balance sheet that allows us to continue to do that, and so we've looked at our balance sheet, our objectives to grow dividends ... and to maintain a strong balance sheet."
Woods adds Exxon is reviewing its global portfolio for divestment opportunities, and will prune assets that don't fit its strategic priorities.
He also says the company will also look for tactical opportunities to offload assets at good value.
But, despite the assurances, it remains unclear when the divestments will give way to share repurchases, and some investors appear to be growing impatient.
Exxon saw its stock price slump on Wednesday, despite the company issuing improved guidance for profits and cash flow during its annual investor day.
Analysts say one reason for the pullback is disappointment that Exxon did not launch a buyback program, even as its peers have begun enriching investors by once again repurchasing stock.
Exxon began trading Thursday up 46 cents to $79.74
