ExxonMobil, which posted a $4.8 billion profit in the fourth quarter, is moving its headquarters to its City Place campus in Houston, from Irving, Texas.
The Irving campus in the Dallas-Fort Worth area has been the company’s headquarters for decades. The new site north of Houston is a 385-acre master-planned community formerly known as Springwoods Village. The move is expected to be complete by mid-2023, ExxonMobil said on Monday, according to the Dallas Business Journal.
The company, formerly known as Standard Oil of New Jersey, moved to Irving from New York City in 1989.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” CEO Darren Woods said. “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.”
The move was part of an announcement that the company will be streamlining its business structure by combining its chemical and downstream companies, among other changes. Beginning April 1, ExxonMobil will have three primary business lines: ExxonMobil Upstream Co., ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions–all supported by ExxonMobil Technology and Engineering.
Consolidating its operations into the City Place campus will “enable closer teamwork to accelerate and increase value delivery through company-wide approaches,” Exxon said.
“ExxonMobil is on track to exceed $6 billion in structural cost savings by 2023, compared to 2019, driven by savings from the new business structure and measures such as centralizing procurement, digital transformation of processes, and right-sizing programs that were announced in 2020,” the company said.
Exxon is the second-largest publicly traded company in North Texas and reported more than $178.57 billion in revenue in 2020 – a relatively slow year for oil and gas. Also headquartered in Texas are BP, ConocoPhilips, Shell, and Valero Energy.
Electric vehicle companies such as Tesla and Noodoe are also flocking from California to the business-friendly state to expand their operations and maybe see a tax break here and there.
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[Dallas Business Journal] – Maddy Sperling