Exxon Beats Q1 Earnings Estimate Amid Strong Production from Guyana and Permian Basin
Exxon Mobil (XOM) exceeded Wall Street’s first-quarter profit forecasts on Friday, with increased oil and gas production from its Guyana and Permian Basin operations fueling the strong performance.
For the period spanning January to March 2025, Exxon posted a profit of $7.71 billion, or $1.76 per share, beating analysts’ expectations of $1.73 per share, according to data from LSEG.
Exxon’s strong earnings come despite challenges faced by the broader energy sector in early 2025. Global tariff announcements by U.S. President Donald Trump raised recession concerns, which contributed to a slump in oil prices. Lower oil prices typically signal a reduced demand for energy due to expectations of slower economic growth.
However, Exxon has maintained strong performance through its operations, particularly in Guyana and the Permian Basin, where it has ramped up production. The company’s oil and gas production reached 4.55 million barrels of oil equivalent per day (boepd), up significantly from 3.78 million boepd during the same period in 2024.
Continued Financial Strength and Shareholder Returns
Exxon returned substantial capital to shareholders in the first quarter, paying $4.3 billion in dividends and repurchasing $4.8 billion in shares. The company is on track to meet its ambitious $20 billion annual share repurchase target.
CEO Darren Woods reassured investors, saying, “In this uncertain market, our shareholders can be confident in knowing that we’re built for this.”
Earnings from oil and gas production amounted to $6.76 billion, marking an increase from the $5.66 billion reported in the same quarter last year. However, refining profits dropped to $827 million, down from $1.38 billion in 2024, reflecting the ongoing volatility in the energy market.
Ongoing Arbitration Over Hess Acquisition
Exxon is also involved in an arbitration case with Chevron over the latter’s planned $53 billion acquisition of Hess, which owns a 30% stake in a key Guyana oil venture led by Exxon. Exxon and its partner, CNOOC, are asserting a first right of refusal to purchase Hess’ stake, with a hearing scheduled for May 26 in London.
Market Impact
Despite the positive earnings report, Exxon shares remained flat in pre-market trading on Friday. This follows a period of uncertainty in the energy sector due to global economic concerns and fluctuating oil prices.
