ExxonMobil announced Monday it is investing $50 billion in the U.S. over the next five years, after President Donald Trump signed major tax reform legislation last year.
“Several companies have announced plans to invest here at home, partly as a result of tax reform, which among other things reduced one of the highest corporate tax rates in the developed world,” Exxon CEO Darren Woods wrote in a blog post. “These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries.”
Woods specifically mentioned expanding operations in the Permian Basin oil field of West Texas and New Mexico. Exxon is pursuing projects along the Gulf Coast, as well.
“The recent changes to the U.S. corporate tax rate coupled with smarter regulation create an environment for future capital investments and will further enhance ExxonMobil’s competitiveness around the world,” Woods said.
The massive investment will create thousands of new jobs, while spurring significant economic growth in the areas Exxon is operating and expanding in, Woods said.
Exxon outperformed expectations in the last quarter of 2017, earning 90 cents a share in profit while projected to earn only 70 cents. The good news for the company was blunted, however, as it took a $2 billion impairment charge due largely to its gas assets declining values.
The value of the company’s shares have grown by 3.3 percent over the past year, but fell 0.7 percent Monday, according to MarketWatch.
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