Exxon Mobil issued new financial guidance on Wednesday, saying its profit potential and ability to generate cash look better than they did last year. But Exxon's stock price slumped as the company prepared investors for an increase in spending in the coming years.
Shares of Exxon ended the day down 1 percent, after initially falling nearly 3 percent during Exxon's presentation at its annual investor day. The stock is up more than 16 percent this year.
Exxon expects its capital spending to grow by $4 billion this year, to $30 billion. Next year, the company expects to spend $33 billion to $35 billion, and $30 billion to $35 billion in the following years through 2025.
The company says its oil and gas exploration over the next three years will focus on deepwater offshore drilling and projects that can feed its growing portfolio of liquefied natural gas developments.