Today, ExxonMobil reported first-quarter earnings of US$7.7 billion, down from US$8.2 billion in the same period last year. The company said the decline was mainly due to weaker industry refining margins, lower crude prices, strategic divestments, and higher expenses tied to growth initiatives.
Those impacts were mostly offset by increased production from Guyana and the Permian Basin, further structural cost savings, and favorable timing effects. The company said it added US$0.6 billion in new savings during the quarter, bringing cumulative structural cost reductions to US$12.7 billion since 2019. It aims to achieve US$18 billion in savings by the end of 2030.
Cash flow from operations was strong at US$13.0 billion, and free cash flow totaled US$8.8 billion. Shareholder distributions reached US$9.1 billion, including US$4.3 billion in dividends and US$4.8 billion in share repurchases. The company reaffirmed its US$20 billion annual buyback program through 2026. ExxonMobil also declared a second-quarter dividend of US$0.99 per share, payable June 10 to shareholders of record as of May 15.
Capital expenditures totaled US$5.9 billion, in line with the full-year guidance range of US$27 billion to US$29 billion. This figure included US$5.9 billion in additions to property, plant, and equipment.
Upstream earnings rose to US$6.8 billion, an increase of US$1.1 billion year-over-year. Growth came from higher volumes in Guyana and the Permian Basin, driven in part by the Pioneer acquisition. Net production rose 20% to 4.6 million oil-equivalent barrels per day. Compared to the fourth quarter, the company said earnings rose by US$258 million due to stronger natural gas and crude realizations, lower exploration costs, and reduced seasonal expenses. Production fell by 51,000 oil-equivalent barrels per day quarter-over-quarter due to divestments.
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“In this uncertain market, our shareholders can be confident in knowing that we’re built for this. The work we’ve done to transform our company over the past eight years positions us to excel in any environment,” Darren Woods, Chairman and Chief Executive Officer, said.
ExxonMobil holds a 45% interest in Guyana’s Stabroek Block. Hess holds 30%, while CNOOC holds 25%.
