ExxonMobil announced first-quarter 2026 earnings of $4.2 billion, or $1.00 per share, which was lower than the $7.7 billion reported in Q1 2025. However, earnings excluding identified items and unfavorable estimated timing effects were $8.8 billion, or $2.09 per share, an increase from $7.6 billion in the same period last year. Identified items of $0.7 billion reflected losses from settled financial hedges due to Middle East supply disruptions, while unfavorable estimated timing effects of $3.9 billion stemmed from the mismatch between financial derivative valuations and physical transactions.
Cash flow from operating activities was $8.7 billion, or $13.8 billion excluding margin postings. The company generated $2.7 billion in free cash flow and distributed $9.2 billion to shareholders, including $4.3 billion in dividends and $4.9 billion in share repurchases, aligning with its plan to repurchase $20 billion in shares for 2026. ExxonMobil also declared a second-quarter dividend of $1.03 per share and maintained industry-leading debt-to-capital and net-debt-to-capital ratios of 15.4% and 13.1% respectively, with a cash balance of $8.4 billion.
Operational highlights include record production in Guyana, exceeding 900 thousand gross barrels of oil per day, and achieving first LNG production at Golden Pass Train 1, increasing U.S. LNG exports by 5%. Net production for the quarter reached 4.6 million oil-equivalent barrels per day. The company continued to realize structural cost savings, adding $0.6 billion in the quarter, bringing the cumulative total to $15.6 billion since 2019, with a target of $20 billion by 2030.
ExxonMobil's CEO, Darren Woods, emphasized that the company is "fundamentally stronger" and built to perform through disruption. He highlighted the benefits of their strategy since 2018, which has focused on growing advantaged volumes, optimizing operations, reducing structural costs, and strengthening earnings power. These efforts have resulted in a more resilient and lower-cost business, enabling consistent growth in earnings, cash flow, and shareholder value.
Upstream earnings were $5.7 billion, down from $6.8 billion in Q1 2025. Excluding identified items and estimated timing effects, upstream earnings of $6.3 billion saw a decrease of $0.3 billion due to higher depreciation and lower base volumes from divestments and operational disruptions in Kazakhstan, partly offset by advantaged volume growth in Guyana and the Permian basin, and structural cost savings. Compared to the fourth quarter, reported earnings increased by $2.2 billion, and excluding identified items and estimated timing effects, earnings increased by $1.8 billion, driven by higher crude and gas realizations despite lower volumes from Middle East impacts, Kazakhstan disruptions, and U.S. winter storm Fern.
