Exxon Mobil Corp. (XOM) on Thursday reported an 11 percent decline in profit for the first quarter, reflecting a drop in oil and natural gas production and sales volumes.
The company also recorded lower earnings at its chemicals segment. Earnings per share missed analysts' estimates, sending the company's shares down more than 1 percent in the regular trading.
Exxon Mobil's oil-equivalent production for the quarter declined 5 percent from last year to 4,553 thousands of oil equivalent barrels per day or koebd.
Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, production was down 1 percent.
The world's largest publicly traded oil company's capital and exploration expenditures for the quarter grew 13 percent from last year to $8.8 billion.
Exxon Mobil's upstream segment earnings for the quarter declined 10 percent from the year-ago period to $7.80 billion, as higher crude oil prices were offset by lower sales volumes.
Higher liquids and natural gas realizations increased earnings by $980 million, while lower sales volumes decreased earnings by $850 million.
Earnings from U.S. upstream operations declined 21 percent, while non-U.S. upstream earnings decreased 8 percent from last year.
Downstream segment earnings increased 45 percent from the prior-year period to $1.59 billion, as lower refining margins were offset by higher volume.
Chemical segment earnings dropped 54 percent from last year to $701 million, reflecting weak margins, higher planned maintenance and the absence of favorable tax items.
Exxon Mobil's first-quarter net income was $9.45 billion or $2.00 per share, down from $10.65 billion or $2.14 per share in the same quarter last year.
The latest quarter's results includes gains from asset sales of about $400 million.
On average, eighteen analysts polled by Thomson Reuters expected the company to report earnings of $2.09 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues and other income for the quarter rose 8.8 percent to $124.05 billion from $114.00 billion in the prior-year quarter. Analysts had a consensus of $124.76 billion.
Liquids production declined 7.7 percent from the year-ago period to 2,214 thousands of barrels per day or kbd.
Natural gas production for the quarter declined 3.4 percent to 14,036 millions of cubic feet per day or mcfd, reflecting field decline and divestments.
The company's petroleum product sales in the quarter increased by 49 kbd from last year to 6,316 kbd.
On Wednesday, Exxon Mobil declared a second-quarter cash dividend of $0.57 per share on the common stock, up from $0.47 per share paid in the preceding first quarter.
In Thursday's regular session, XOM is trading at $85.36, down $1.49 or 1.72 percent on a volume of 219,411 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.