Exxon said strong output in the Permian Basin and Guyana and ongoing cost-cutting measures helped blunt the impact of weaker pricing.

Exxon Mobil (XOM) shares edged 1% higher in premarket trading Friday after the oil major posted first-quarter earnings that narrowly exceeded Wall Street estimates, even as revenue missed expectations and profits declined year over year.

The company reported net income of $7.71 billion, or $1.76 per share, compared to $8.22 billion, or $2.06 per share, in the same quarter last year. Analysts polled by Koyfin had forecast earnings of $1.73 per share. 

Revenue came in at $83.13 billion, below the $86.08 billion consensus estimate.

Lower crude prices weighed on Exxon’s results. U.S. oil futures are down 18% year-to-date, amid concerns that President Donald Trump’s tariffs will weaken global demand. At the same time, OPEC+ producers are expected to ramp up supply, compounding pressure on prices.

Despite the headwinds, Exxon said strong output in the Permian Basin and Guyana and ongoing cost-cutting measures helped blunt the impact of weaker pricing. 

Upstream earnings rose 19% year-over-year (YoY) to $6.76 billion, with U.S. production profit up more than 70% to $1.87 billion. 

Global production reached 4.55 million barrels per day, up from 3.78 million barrels per day a year earlier.

Capital expenditures totaled $5.9 billion for the quarter, in line with the company’s full-year guidance of $27 billion to $29 billion. Exxon returned $9.1 billion to shareholders, including $4.3 billion in dividends and $4.8 billion in buybacks.

Chevron (CVX), which also reported first-quarter earnings on Friday, saw a steeper earnings decline. Quarterly profit fell 36% year-over-year to $3.5 billion, with revenue down 2% to $47.61 billion. Chevron’s stock dropped nearly 2% pre-market after earnings and revenue missed analyst targets.

Exxon and Chevron are set to face off later this month in arbitration over Chevron’s $53 billion bid for Hess. The dispute centers on Hess’s 30% stake in a major Exxon-led project in Guyana, which Exxon claims it has the right to preempt.

Exxon’s stock has fallen over 2% in 2025 and is down more than 10% over the past 12 months.

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