[HOUSTON] Exxon Mobil 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.
The largest US oil producer paid US$4.3 billion in dividends and repurchased US$4.8 billion in shares during the quarter. The buyback figure puts Exxon 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.
Shares of Exxon, which have fallen 9 per cent over the past year, rose about 1 per cent in pre-market trading.
The energy sector has 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. At the same time, the Opec+ group of oil producers has been increasing output, leading to more crude supply and further pressuring prices.
Exxon reported a profit for the January-to-March quarter of 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.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Exxon’s results set it apart from rival US oil major Chevron, which said on Friday it would cut share repurchases during the second quarter.
“(Exxon) appears to have reiterated guidance on the shareholder returns front, which should be expected given the company’s strong balance sheet,” said Biraj Borkhataria, an analyst at RBC Capital Markets, in a research note.
Global 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.
Exxon is the largest producer in the Permian basin, the top US oilfield, and operates the lucrative Stabroek block off the coast of Guyana. Cost of supply in the Permian is less than US$35 per barrel, the company has previously said, allowing it to make money even at lower oil prices.
Higher production from the Permian and Guyana helped boost earnings from oil and gas production to 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 earlier.
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. REUTERS
