Higher oil prices have propelled ExxonMobil’s first-quarter adjusted earnings beyond analyst expectations, even as the company faced declines in oil and gas production from the Middle East and Kazakhstan. In a financial report released on Friday, Exxon announced adjusted earnings, excluding identified items, of $4.9 billion, which translates to $1.16 per share. This figure surpasses the consensus estimate of $0.98 per share, as reported by the Wall Street Journal.
Total revenues and other income for Exxon reached $85.14 billion in the first quarter, marking an increase from $83.13 billion during the same period last year, and outpacing analyst forecasts of $82.18 billion. The company attributed identified items totaling $700 million in losses to settled financial hedges, which were not offset by physical shipments due to disruptions in Middle East supply chains.
The surge in earnings was primarily driven by robust refining and trading activities, though this was partially countered by lower oil and gas production volumes resulting from scheduled maintenance and regional disruptions. Exxon highlighted that strong prices and margins, along with advantages from volume growth and structural cost savings, were tempered by increased expenses associated with strategic investments in the region.
Recently, Exxon indicated that rising oil and gas prices, spurred by the ongoing conflict with Iran, could potentially add as much as $2.9 billion to its upstream earnings for the first quarter. The company suggested that the financial benefits from higher oil prices are expected to outweigh the negative impact of production interruptions in the Middle East.
In terms of global production, Exxon reported a 6% decline in oil-equivalent output in the first quarter compared to the previous quarter of 2025. The company’s net production for the first quarter stood at 4.6 million oil-equivalent barrels per day. However, on a positive note, Exxon achieved a new production record in Guyana, reaching over 900,000 gross barrels of oil per day.
As the company aims to enhance its production capacity outside the Middle East, it has shifted its focus towards assets in Guyana and the Permian Basin. This strategic pivot comes as operations in Qatar and the UAE were significantly affected by regional conflicts and the closure of the Strait of Hormuz.
