Exxon Mobil (XOM.N) exceeded Wall Street’s profit forecast for the first quarter, driven by increased oil and gas production from Guyana and the Permian Basin. The results, announced on Friday, revealed earnings of $7.71 billion, or $1.76 per share, surpassing analysts’ expectations of $1.73 per share. Exxon’s performance stands in contrast to its competitor, Chevron (CVX.N), which announced plans to reduce share buybacks in the upcoming quarter.
During the first quarter, Exxon repurchased $4.8 billion in shares and paid $4.3 billion in dividends, advancing toward its goal of $20 billion in share buybacks for the year. The company’s strong performance in the face of a turbulent energy market, triggered by U.S. President Donald Trump’s global tariff announcements, shows the resilience of its production capabilities. The tariffs sparked recession fears, which in turn lowered oil prices as weaker economies require less energy.
Despite the global economic concerns and increased output from OPEC+, Exxon remains confident in its investment strategy. The company has committed to spending between $27 billion and $29 billion in 2025, with CEO Darren Woods reaffirming that Exxon will prioritize long-term growth despite pressures from short-term investors to reduce spending and increase shareholder returns. Woods criticized the short-term focus, describing it as “short-sighted” during an analysts’ conference call.
Exxon’s global oil and gas production reached 4.55 million barrels of oil equivalent per day (boepd) in the quarter, a significant increase from 3.78 million boepd in the same period last year. The company remains the largest producer in the Permian Basin, the United States’ top oilfield, and operates the lucrative Stabroek block off the coast of Guyana. Exxon’s low cost of supply in the Permian, under $35 per barrel, enables the company to remain profitable even when oil prices dip.
The company’s oil and gas production profits amounted to $6.76 billion, up from $5.66 billion a year ago. However, refining profits dropped to $827 million, down from $1.38 billion in the previous year. Despite ongoing global tariff concerns impacting new projects, Woods stated that Exxon has not yet encountered significant disruptions.
A notable legal battle involving Exxon is its ongoing arbitration with Chevron over the latter’s planned $53 billion acquisition of Hess, which owns a 30% stake in Exxon’s Guyana oil venture. A hearing for the case is scheduled for May 26 in London. Exxon’s stock, which has fallen 9% over the past year, remained steady in morning trading following the earnings report.
Përmbledhje:
- Exxon Mobil’s first-quarter profit exceeded Wall Street expectations, reaching $7.71 billion.
- The company is on track to meet its $20 billion share buyback goal for the year.
- Exxon remains committed to long-term investments, despite economic uncertainties and pressures from short-term investors.
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