Exxon Mobil, one of the world's largest oil companies, reported first-quarter earnings that missed expectations due to lower refining margins and collapsing natural gas prices. The company generated $8.2 billion in earnings for the quarter, a 28% decrease compared to the same period last year. Exxon produced 3.78 million barrels per day in Q1, slightly less than the previous year's output of 3.83 million barrels per day.
Despite these challenges, Exxon achieved quarterly gross production of over 600,000 oil-equivalent barrels per day in Guyana and reached a final investment decision on the sixth major development. The company also grew performance chemical sales volumes and delivered record first-quarter refining throughput while maintaining excellent turnaround performance.
Exxon has been investing in technology to extend its reach to new high-value, high-growth markets, including advanced recycling, ProxximaTM, carbon materials and direct air capture of carbon dioxide. The company has reduced operated methane emissions intensity by more than 60% since 2016.
Exxon's earnings miss can be attributed to noncash tax and inventory adjustments as well as lower refining margins, which were down compared to the same period last year. Natural gas prices have also plummeted by 37% this year, further impacting the company's financial performance.
In a recent dispute over Chevron's acquisition of Hess Corp., an arbitration court ruled in favor of Exxon, upholding its joint operating agreement for Guyana assets. This decision has significant implications for Exxon's operations in the region and its ongoing partnership with Hess Corp.
Exxon Mobil's stock is down more than 3% following the earnings report. Despite these challenges, the company remains committed to investing in technology and reducing emissions intensity as it navigates a rapidly evolving energy landscape.
