[HOUSTON] ExxonMobil on Friday (May 2) beat 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-to-March quarter was US$7.71 billion or US$1.76 per share, beating analyst estimates of US$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’s oil and gas production totalled 4.55 million barrels of oil equivalent per day (boepd) during the quarter, up from 3.78 million boepd in the same period last year.
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Exxon paid US$4.3 billion in dividends and repurchased US$4.8 billion in shares during the quarter. The buyback figure puts the company on track to meet its annual share repurchase goal of US$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.
Earnings from oil and gas production were US$6.76 billion, up from US$5.66 billion in the same period last year.
Refining profits were US$827 million, down from US$1.38 billion a year ago.
Exxon has been locked in an arbitration battle with rival Chevron over Chevron’s planned US$53 billion acquisition of Hess, which owns a 30 per cent 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.
Shares of the company were flat in pre-market trading on Friday. REUTERS
