At an analysts meeting in New York Wednesday, Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson reiterated that the company’s capital spending budget for 2016 will be $23 billion, a cut of 25% from the $31 billion the company spent in 2015. Exxon announced the cut when it reported fourth-quarter results in early February.

In a press release Wednesday, Exxon said it is “on track” to begin work on 10 new upstream projects in 2016 and 2017 to add 450,000 barrels a day of oil equivalent working-interest production capacity.

Tillerson commented:

We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals. … We are focused on maximizing benefits across the energy value chain.

Besides investing in growth, Exxon plans to focus on fundamentals and continue growing its dividend. The company noted that it has increased its dividend for 33 consecutive years and that, on average, 48% of its cash flow has been distributed to shareholders. Cash flow from operations totaled $33 billion in 2015 and free cash flow totaled $6.5 billion.

Capital and cash operating costs fell by $12 billion year over year in 2015, with upstream costs down 9% compared with 2014. Refining cash costs were 15% below the industry average in 2015.

Late Wednesday morning, Exxon stock traded up about 0.4%, at $81.63 in a 52-week range of $66.55 to $90.09. WTI traded down about 1.7% Wednesday morning at $33.90 following the EIA inventory report.

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