Exxon Mobil Corporation XOM reported first-quarter 2025 earnings per share of $1.76 (excluding identified items), which beat the Zacks Consensus Estimate of $1.72. The bottom line, however, declined from the year-ago level of $2.06. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $83.13 billion missed the Zacks Consensus Estimate of $84.49 billion. The top line increased from the year-ago figure of $83.08 billion.
Better-than-expected quarterly earnings were fueled by higher production from Guyana, Permian and structural cost savings. However, this was partially offset by lower base volumes from divestments, a decline in industry refining margins and weaker crude price realization.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operational Performance
Upstream
The segment reported quarterly earnings (excluding identified items) of $6.76 billion, up from $5.66 billion in the year-ago quarter. The increase was primarily driven by production growth from its resources in Guyana, the Permian Basin and Pioneer acquisition. Structural cost savings also contributed to the improvement.
Operations in the United States recorded a profit of $1.87 billion, higher than $1.05 billion registered in the March-end quarter of 2024. The company reported a profit of $4.89 billion from non-U.S. operations compared with $4.61 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,551 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,784 MBoe/d reported a year ago. The figure also surpassed our estimate of 4,238.2 MBoe/d.
Liquids production also increased to 3,139 thousand barrels per day (MBbls/d) from 2,557 MBbls/d in the prior-year quarter. The increase can be attributed to higher production from the United States and Asia.
Natural gas production totaled 8,470 million cubic feet per day (Mmcf/d), up from 7,362 Mmcf/d reported a year ago. Increased output levels from the United States and Asia contributed to the increase.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $69.41 per barrel, down from the year-ago figure of $74.96. The figure also missed our estimate of $69.73. Crude price realization for non-U.S. operations decreased to $68.12 per barrel from $72 in the year-ago quarter. Our estimate for the same was pinned at $67.31 per barrel.
Natural gas price in the United States was $3.38 per thousand cubic feet (Mcf), higher than the year-ago level of $2.22. Our estimate for the same was pegged at $3.72 per Mcf. Also, in the non-U.S. section, the metric declined to $10.17 per Mcf from $11.37. The figure also missed our estimate of $12.82 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $827 million, down from $1.4 billion recorded a year ago. The reported figure was also below our estimate of $953.7 million. The segment was affected by significantly weaker refining margins in the reported quarter, partially offset by cost savings and stronger North American margins.
Chemical Products
This unit of ExxonMobil recorded a profit of $273 million (excluding identified items), lower than $785 million registered in the year-ago quarter. The reported figure missed our estimate of $748.5 million. The decrease was primarily due to weaker margins from higher feed, lower volumes, and higher costs from turnaround activity and advantaged project start-up costs.
Specialty Products
This unit recorded a profit of $655 million (excluding identified items), down from $761 million recorded in the year-ago quarter. Our projection for the same was pegged at $693.5 million. The segment was affected by higher new market development and feed costs.
Financials
ExxonMobil generated a cash flow of $12.95 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $5.94 billion.
Total cash and cash equivalents were $ 18.51 billion, and long-term debt totaled $ 32.82 billion.
XOM’s Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.
Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.
Kinder Morgan is a leading midstream player in North America with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
Kinder Morgan’s earnings missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.
Enterprise generates stable fee-based revenues from its vast network of oil and gas pipelines spanning 50,000 miles, connecting prolific U.S. shale plays. Notably, the acquisition of Pinon Midstream, which aims to provide services in the prolific Permian Basin, is expected to drive the partnership’s cash flows. This move enhances its NGL value chain and addresses regional infrastructure constraints, with strong customer demand expected to boost revenues.
EPD’s earnings beat estimates in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 0.77%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
