Exxon Mobil sticks to spending plans

Exxon Mobil Corp. said Thursday that it would stick to its planned capital spending range for the next five years despite the steep decline in oil prices that has prompted many producers to cut back.

The oil giant said it would spend between $25 billion to $30 billion per year as part of its effort to meet long-term growth in world demand.

"Exxon Mobil's business is strong, and so is our commitment to investing through the business cycle," Chief Executive Officer Rex Tillerson told an analysts meeting.

Exxon's capital spending was about $26 billion in 2008, up about 28% from 2007. The company also spent $32 billion in share buybacks last year.

Exxon set a company and U.S. record for annual profits in 2008, racking up $45.2 billion in earnings in the year that saw oil prices skyrocket to $147 per barrel.

But oil prices have crashed nearly 70% to $45 a barrel since then as the economic downturn has eroded demand in many key regions, including the United States.

Exxon (XOM, Fortune 500) shares were down 2.5% at $64.01 in morning New York Stock Exchange trade.

At Wednesday's close, the stock had slumped nearly 18% so far this year, but was the second-best performer behind McDonald's Corp (MCD, Fortune 500). in the Dow Jones Industrials index over the past six months, with a 17.5% decline in that period.

The stock was also the second-best performer in the Standard & Poor's Energy Index over the last six months and easily outperformed the index, which was down 42% in that period.