Key Highlights
- First quarter adjusted earnings per share reached $1.16, surpassing the Wall Street consensus of $0.98
- Total revenue increased 2.4% from the prior year to $85.1 billion, exceeding projections of $81.1 billion
- Conflict in the Middle East reduced quarterly output by 6% and resulted in a $700 million charge for undelivered shipments
- Reported net profit declined to $4.2 billion from $7.7 billion in the same period last year — the weakest performance since early 2021
- CEO Darren Woods emphasized that Exxon has evolved into a more resilient organization capable of weathering market volatility
Shares of Exxon Mobil (XOM) climbed 0.6% to $155.23 during premarket hours Friday following the release of first-quarter financial results that exceeded Wall Street projections.
The energy giant’s shares had touched all-time peaks near $176 earlier in the year before retreating toward the $154 level. Friday’s quarterly report provided a catalyst for renewed investor optimism.
Adjusted profit per share registered at $1.16, comfortably ahead of analyst expectations calling for $0.98. Top-line revenue advanced 2.4% year-over-year to $85.1 billion, topping the Street’s forecast of $81.1 billion.
However, a closer examination of the unadjusted figures reveals additional complexity.
Reported net earnings tumbled to $4.2 billion, a significant decline from the $7.7 billion recorded in the first quarter of 2025. This represents Exxon’s weakest bottom-line performance since early 2021.
The decline stems primarily from escalating hostilities in the Middle East, which have affected Exxon more severely than most competitors. Roughly 20% of the company’s total oil and natural gas output originates from this region — among the highest concentrations of any major oil producers. By contrast, Chevron reported that under 5% of its production is sourced from Middle Eastern operations.
Regional Conflict Disrupts Operations
Attacks by Iran damaged a pair of liquefied natural gas installations in Qatar where Exxon maintains ownership interests. These disruptions reduced first-quarter production volumes by 6% relative to the fourth quarter.
The corporation also absorbed a $700 million charge related to cargo shipments that could not be completed due to the ongoing conflict. This expense was excluded from the adjusted earnings calculation.
Additionally, Exxon reported substantial losses associated with financial derivatives — an accounting mechanism that requires recognizing paper losses on hedging instruments before the completion of physical transactions. CFO Neil Hansen noted that these timing-related effects generally reverse themselves within several months, although forecasting future impacts remains challenging.
When stripping out all timing-related items and undelivered cargo charges, Hansen indicated that core net income actually expanded compared to the previous year.
Permian and Guyana Operations Remain Strong
Despite Middle Eastern headwinds, Exxon’s flagship production assets demonstrated solid performance.
Output from the Permian Basin continued its upward trajectory, while operations in Guyana achieved record production levels during the three-month period. These two regions represent Exxon’s most strategically important upstream portfolios.
Free cash generation totaled $2.7 billion for the quarter, down from $8.8 billion in the year-earlier period. The company distributed $4.3 billion to shareholders through dividends and repurchased $4.9 billion worth of shares.
Capital spending reached $6.2 billion, consistent with full-year projections.
CEO Darren Woods characterized the results as evidence that Exxon has become “a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.”
Investment analysts are expected to seek clarification on the projected timeline for restoring damaged Middle Eastern facilities during Exxon’s earnings conference call scheduled for Friday.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
