Exxon, top in stock buybacks, now saving its cash
- 8 years ago
Few phenomena in the stock market are more predictable than oil major Exxon Mobil Corp's massive share buyback program.
Until now.
The company, which has spent about $210 billion over the last decade buying back its own stock, is bowing to the reality that crude's sharp downturn is hurting its bottom line.
It surprised investors on Tuesday by dramatically ratcheting back share repurchases, and for the first time in 15 years, Exxon Mobil will only buy back shares to offset dilution as opposed to return cash to shareholders.
Exxon reported its smallest quarterly profit in more than a decade and said it will cut 2016 spending by one-quarter and suspend share repurchases.
Until now.
The company, which has spent about $210 billion over the last decade buying back its own stock, is bowing to the reality that crude's sharp downturn is hurting its bottom line.
It surprised investors on Tuesday by dramatically ratcheting back share repurchases, and for the first time in 15 years, Exxon Mobil will only buy back shares to offset dilution as opposed to return cash to shareholders.
Exxon reported its smallest quarterly profit in more than a decade and said it will cut 2016 spending by one-quarter and suspend share repurchases.