First-quarter earnings at ExxonMobil (NYSE: XOM) topped analyst estimates as higher production in the Permian basin growth and offshore Guyana offset part of the lower realizations due to falling oil prices.
Despite the lower earnings compared to a year ago, Exxon expressed confidence that the structural and cost-saving measures of the past few years have prepared it to weather the uncertain market environment.
Exxon reported on Friday first-quarter earnings of $7.7 billion, down from $8.2 billion in the first quarter of 2024. Earnings per share (EPS) slipped to $1.76 from $2.06, but beat the consensus estimate of $1.73.
The U.S. supermajor generated $13.0 billion in cash flow from operations in the first quarter, down from $14.7 billion for the same period of 2024.
First-quarter earnings were helped by production growth in the Permian and Guyana, additional structural cost savings, and favorable timing effects. These mostly offset lower earnings due to a significant decline in industry refining margins, weaker crude prices, lower base volumes from strategic divestments, and higher expenses from growth initiatives, Exxon said.
Upstream earnings increased by $1.1 billion from a year earlier to $6.8 billion, thanks to continued growth in the Permian and Guyana, as well as structural cost savings.
Exxon’s net production jumped by 20% to 4.6 million oil-equivalent barrels per day from Permian growth driven by the acquisition of Pioneer.
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Source: Oil & Gas 360
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