(Bloomberg) — Exxon Mobil Corp. will relocate its company headquarters to the Houston space from close to Dallas and mix its chemical and refining divisions in a serious shake-up aimed toward decreasing prices.
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The oil big will probably be organized alongside three major enterprise strains: upstream, which produces oil and fuel; product options, which makes fuels and chemical compounds; and its low carbon division, the corporate stated in an announcement Monday. The adjustments will happen from April 1, and the headquarters relocation will probably be full by mid-2023.
Exxon has been on an aggressive drive to scale back prices over the previous few years and is on observe for $6 billion of financial savings by 2023, in contrast with 2019 ranges, or sufficient to pay for about 40% of its dividend. The firm’s executives have labored out of the well-known “God Pod,” a big tree-lined workplace park in Irving, west of Dallas, for 3 a long time after shifting from a skyscraper in Manhattan.
“Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition,” CEO Darren Woods stated within the assertion.
Exxon’s new headquarters will probably be in its largest U.S. workplace campus in Spring, simply north of Houston, which was opened beneath former Chief Executive Officer Rex Tillerson in 2014.
While Exxon is without doubt one of the S&P 500’s high performers in 2022, it’s been a tough few years for the corporate. The pandemic compelled Woods to pivot away from his $200 billion, seven-year development technique in direction of a low-spending, extra capital environment friendly mannequin after debt ballooned in 2020. The following 12 months, activist investor Engine No. 1 received help from shareholders to interchange 1 / 4 of the corporate’s board after criticizing its monetary efficiency and strategy to local weather change.
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Exxon rose 0.9% to $75.96 at 12:33 p.m. in New York, with Brent crude advancing 1.3%. The firm reviews fourth-quarter earnings on Tuesday.
(Updates with CEO’s remark in fourth paragraph.)
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