Exxon Mobil is moving its headquarters.
Spencer Platt/Getty Images
Exxon Mobil is remaking its corporate structure, elevating its low-carbon operations to its own division, and even moving its official headquarters, the company announced on Monday.
Shares rose 0.9% on the day, though that was likely due to a rise in oil prices more than the corporate announcement.
The moves may not have a major operational impact on the company, but they do elevate the company’s climate initiatives, and will likely result in substantial cost reductions. Exxon (ticker: XOM) is also moving its headquarters to Houston from Irving, near Dallas. A large portion of the company’s employees are already in Houston, but top executives are currently in Irving.
Exxon’s decision to elevate Low-Carbon Solutions, an area where it expects to spend $15 billion through 2027, to its own reportable division could be a sign it’s more serious about spending money to battle climate change. It also means investors could start judging the company on those results in a similar way that it looks at its production and refining results.
The oil giant is announcing fourth-quarter earnings on Tuesday that should cement its comeback from a tumultuous 2020. Exxon is expected to post sales of $85 billion, and earnings of $8.2 billion, or $1.94 per share.
Write to Avi Salzman at [email protected]
