XOM) is expected to need approximately $15.6 billion in incremental debt financing over the next years to back its dividend, increasing the oil company’s outstanding debt by 22%, according to MKM Partners.
ExxonMobil could further reduce its capital expenditures to $16-$17 billion annually in the next two years, the analyst said.
“Given this outlook, the company generates approximately $13.6 billion of aggregate FCF in 2021/2022, and assuming a minimum cash balance of ~$3 billion, which provides ~$0.5 billion of financing entering 2021, implies a need to externally fund ~$15.6 billion of the ~$29.7 billion aggregate dividend payments the next two years.”
Latest Ratings for XOM
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Sep 2020 | MKM Partners | Initiates Coverage On | Buy | |
| Aug 2020 | Morgan Stanley | Maintains | Equal-Weight | |
| Aug 2020 | Morgan Stanley | Maintains | Equal-Weight |
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