Exxon Mobil has today beaten Wall Street’s estimate for first-quarter profit as higher oil and gas production from Guyana and the Permian basin helped boost earnings.
Profit during the January-March quarter was $7.71 billion or $1.76 per share, beating analyst estimates of $1.73 per share, according to data compiled by LSEG.
Exxon, the largest US oil producer, and the broader energy sector have faced a tumultuous start to the year after US President Donald Trump’s global tariff announcements stoked recession fears. Those concerns triggered a slump in oil prices because a weaker economy needs less energy to fuel it.
Trump, who wants lower pump prices for consumers, is executing policies to cut regulations, a move he claims will increase oil and gas output.
But with the exception of some liquefied natural gas projects, energy companies generally have not increased investment plans and are bracing for a downturn after oil prices in April fell to a four-year low.
Sustained lower oil prices would lead producers to cut rather than increase spending and drilling.
Exxon paid $4.3 billion in dividends and repurchased $4.8 billion in shares during the quarter. The buyback figure puts the company on track to meet its annual share repurchase goal of $20 billion.
“In this uncertain market, our shareholders can be confident in knowing that we’re built for this,” Exxon CEO Darren Woods said in a statement.
In an earnings snapshot last month, Exxon signaled that higher oil and gas prices during the first quarter could help boost earnings by about $400m compared to the fourth quarter. Weaker margins in its specialty products business, however, would drag down earnings by about $200m from the previous quarter, the company said.
Exxon has been locked in an arbitration battle with rival Chevron over Chevron’s planned $53 billion acquisition of Hess, which owns a 30% interest in a Guyana oil joint venture that is led by Exxon.
Exxon and CNOOC, the third partner in the consortium, argue they have a first right of refusal to purchase Hess’ stake. A hearing in the arbitration case is scheduled for May 26 in London.
