It surprised investors on Tuesday by dramatically ratcheting back share repurchases, and for the first time in 15 years, Exxon Mobil will only buy back shares to offset dilution as opposed to return cash to shareholders. Exxon reported its smallest quarterly profit in more than a decade and said it will cut spending by one-quarter and suspend share repurchases. For the first quarter of , the company could still be a net purchaser of shares, because stock grants to employees through benefit plans and options programs means it will need to buy back stock to offset dilution, the company said Tuesday.

The move comes as its shares fall within 15 percent of a five-year low - when it would be more advantageous to repurchase its stock. Large companies have been criticized for excessive spending on buybacks to reduce share counts, which help boost earnings per share, rather than investing in capital expenditures or research.

Exxon has long been known for cash distribution. Reuters is the news and media division of Thomson Reuters.

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Business News Tue Feb 2, 3: The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, in this December 30, , file photo.

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