Exxon uproots to Houston, 'energy capital of the world'

Exxon Mobil is leaving its home in the suburban Dallas-Fort Worth to its new headquarters in Houston.

This is to be done by 2023, CNBC reported.

“I welcome today’s news that @exxonmobil will relocate its corporate headquarters to our area,” Houston Mayor Sylvester Turner wrote on Twitter. “In this city, we partner with our energy sector to move forward positively in a way that can benefit Houstonians and create a global impact on climate, resilience and sustainability.”

The goal of this move is to reduce costs.

“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,” Chief Executive Officer Darren Woods said in the statement to Bloomberg. 

Exxon is also combing its refining and chemicals businesses into one, CNBC reported.

“Aligning our businesses along market-focused value chains and centralizing service delivery, provides the flexibility to ensure our most capable resources are applied to the highest corporate priorities and positions us to deliver greater shareholder returns,” Woods said to CNBC.

Exxon earned approximately over $23 billion for the year, CNN reported.

The move will combine the oil and gas giant's chemical and refining divisions to reduce costs.

“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” Woods said to ABC 13. “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.”

Additionally, ExxonMobil will reorganize along with its upstream, product solutions and low-carbon division business lines.

“Exxon Mobil’s move further solidifies Houston’s position as the Energy Capital of the World,” Bob Harvey, CEO of the Greater Houston Partnership, the city's economic development group, said to the Houston Chronicle. “Exxon Mobil is a key participant in our Houston Energy Transition Initiative, and we look forward to working with the company as we continue to position Houston to lead the energy transition to a low-carbon future.” 

The announcement doesn't impact the company's fourth-quarter financial results, which is reported on Feb. 1.