By Collin Eaton
Exxon Mobil expects the Iran war to curtail its global oil-and-gas production by 6% in the first quarter, after the closure of a key Middle East waterway and attacks on gas assets in March.
The U.S. oil giant's assets in Qatar and the United Arab Emirates make up about 20% of the company's worldwide output, "but a smaller percentage of upstream earnings," it said Wednesday in a preview of its first-quarter earnings due in May. Exxon pumped 4.7 million barrels of oil and gas per day in the fourth quarter.
In the first quarter, Exxon said it expected a boost to earnings of up to about $2.9 billion from higher oil and natural-gas prices, compared with the prior quarter, when it reported a $6.5 billion profit.
However, Exxon also warned of negative timing effects associated with its trading program that should weigh on its first-quarter earnings, to the tune of $3.5 billion to $4.9 billion. The midpoint of that range is equivalent to about 93 cents per share. In the fourth quarter, Exxon's earnings per share were $1.53, or $1.71 when stripping out certain one-time costs.
Exxon Finance Chief Neil Hansen said those negative timing effects stem from how the company accounts for certain trades, and will unwind over time. Exxon uses financial derivatives to hedge its oil and gas sales, and is required to account for them at month-end prices, often well before actual sales on the physical market are done, he said.
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(END) Dow Jones Newswires
April 08, 2026 07:02 ET (11:02 GMT)
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