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Exxon chairman and CEO Rex Tillerson. Image courtesy of ScoutsMessengers/Youtbe.

ExxonMobil said Wednesday that it will cut its 2016 capital spend by 25 percent from year ago levels.

The company now anticipates a $23 billion capital spending budget in 2016, down 25 percent from 2015.

ExxonMobil said it generated $33 billion of cash flow from operations and asset sales and $6.5 billion of free cash flow in 2015.

The company achieved a total net reduction of $12 billion in both capital and cash operating costs in 2015, with its upstream total unit costs falling 9 percent from 2014.

Exxon added that its refining unit cash costs are now 15 percent lower than the industry average.

“Exxon Mobil Corporation is achieving industry-leading financial performance throughout the commodity price cycle by maintaining a focus on the fundamentals, selectively investing in the business and paying a reliable and growing dividend,” Exxon chairman and CEO Rex W. Tillerson said.

The company said it is on track to start up 10 new upstream projects in 2016 and 2017 that will add 450,000 barrels of oil equivalent per day of working-interest production capacity.

Exxon added 1 billion oil-equivalent barrels of proved oil and gas reserves in 2015, replacing 67 percent of production, including a 219 percent replacement ratio for crude oil and other liquids.

The company beat analyst expectations last month after reporting $2.78 billion, or $0.67 per diluted share, in fourth quarter earnings.

Earlier this year, Exxon declared a first quarter cash dividend of 73 cents per share on its common stock, payable on March 10, 2016.

ExxonMobil said Wednesday it has increased its dividend for 33-consecutive years through 2015, with an annual increase of 10 percent per year over the past 10 years.

“On average, 48 cents of every dollar generated by the business during the last five years has been distributed to shareholders,” the company added.