Exxon Mobil Tops Q4 Estimates on Low-Cost Production

Key Moments

Q4 Earnings Outperform Expectations

HOUSTON, Jan 30 (Reuters) – Exxon Mobil Corp (XOM.N) posted fourth-quarter results that exceeded Wall Street forecasts, supported by expanding lower-cost oil production in the Permian Basin and offshore Guyana. The performance underscored the resilience of the largest U.S. oil producer amid a challenging pricing backdrop.

For the October to December period, Exxon reported adjusted earnings of $1.71 per share. That figure came in above the analyst consensus of $1.68 per share, according to data compiled by LSEG.

🛢️ Exxon Mobil Corp. $XOM beat Q4 earnings expectations, posting adjusted EPS of $1.71 vs. $1.68 expected, driven by higher upstream production in the Permian Basin and Guyana and a strong rebound in refining margins.$XOM achieved its highest annual upstream production in over… pic.twitter.com/1sIi1UbTQ8

— LWS Financial Research (@lwsresearch) January 30, 2026

Profitability Under Pressure but Supported by Cost Discipline

Oil and gas producers contended with weaker profitability through 2025 as a surplus of crude supply weighed on prices. Brent oil futures declined 19% last year, pressuring sector earnings. Exxon’s adjusted profit for the full year 2025 slipped by 10%, a smaller drop than the move in benchmark prices, as the company intensified efforts to reduce its cost base.

“We’re capturing more value from every barrel and molecule we produce and building growth platforms at scale – creating a long runway of profitable growth through 2030 and beyond,” Exxon CEO Darren Woods said in a statement.

The company stated that annual upstream production reached its highest level in more than four decades, highlighting the scale of its operations and the contribution of newer, lower-cost assets.

Shareholder Returns and Capital Allocation

Exxon continued to prioritize capital returns, distributing $17.2 billion in dividends over the last year. In addition, the company repurchased $20 billion of its shares during the same period.

Looking ahead, Exxon indicated it plans to maintain its share repurchase program at the current level, with a target of buying back $20 billion in stock through 2026.

Capital expenditures totaled $29 billion last year. The company has guided that this year’s capital spending will range between $27 billion and $29 billion.

Refining Margins and Asset Write-downs

In an earnings update earlier this month, Exxon indicated that improved refining margins were expected to provide an additional $300 million to $700 million to fourth-quarter earnings. At the same time, the company pointed to anticipated asset write-downs totaling approximately $1.7 billion.

Strategic Questions Around Venezuela

Darren Woods was expected to field questions during an analyst call about Exxon’s stance on potentially reentering Venezuela, following the U.S. capture and removal of Venezuelan President Nicolas Maduro earlier this month. U.S. President Donald Trump has encouraged American companies to commit billions of dollars in investment to help restart the country’s oil sector.

Woods previously described Venezuela as “uninvestable” during a White House meeting with Trump and other oil executives, emphasizing that the company requires investment protections after having its assets expropriated twice in the past. The company remains open to sending a technical team to the country to examine potential options, Reuters has reported, citing a source familiar with Exxon’s thinking.