Exxon Mobil Q4 Earnings Beat Estimates on Higher Production

Exxon Mobil Corporation XOM reported fourth-quarter 2025 earnings per share of $1.71 (excluding identified items), which beat the Zacks Consensus Estimate of $1.68. The bottom line improved from the year-ago quarter’s level of $1.67.

Total quarterly revenues of $82.3 billion lagged the Zacks Consensus Estimate of $83.2 billion. The top line also declined from the year-ago figure of $83.4 billion.

The strong quarterly earnings can be attributed to higher oil equivalent production volumes and higher industry refining margins. The positives were partially offset by lower crude oil and natural gas price realizations.

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 $4.41 billion, down from $6.28 billion in the year-ago quarter. The decline was primarily due to lower crude price realizations, decreased base volumes from divestments and higher depreciation expenses.

Operations in the United States recorded a profit of $1.22 billion, lower than $1.62 billion in the December-end quarter of 2024. The company reported a profit of $3.19 billion from non-U.S. operations compared with $4.67 billion in the year-ago quarter.

Production: ExxonMobil’s production averaged 4,988 thousand barrels of oil equivalent per day (MBoe/d), higher than 4,602 MBoe/d a year ago. The growth in production levels was driven by its advantaged assets in the Permian and Guyana.

Liquids production increased to 3,531 thousand barrels per day (MBbls/d) from 3,213 MBbls/d in the prior-year quarter. The increase can be attributed to higher production from the United States and Canada/Other Americas.

Natural gas production totaled 8,743 million cubic feet per day (Mmcf/d), higher than 8,331 Mmcf/d a year ago. Higher production in the United States and Australia/Oceania contributed to the increase.

Price Realization: In the United States, ExxonMobil recorded crude price realization of $58.57 per barrel, down from the year-ago figure of $67.58. Crude price realization for non-U.S. operations decreased to $57.46 per barrel from $67.58 in the year-ago quarter.

Natural gas price in the United States was $1.75 per thousand cubic feet (Mcf), lower than the year-ago level of $2.09. Additionally, in the non-U.S. section, the metric declined to $9.60 per Mcf from $10.77.

Energy Products

The segment recorded a profit (excluding identified items) of $2,907 million, up from $323 million a year ago. The increase was driven by higher industry refining margins from favorable gasoline and diesel crack spreads, higher volumes due to record North American refining throughput and the growth of advantaged projects. However, these gains were partly offset by higher seasonal expenses.

Chemical Products

This unit of ExxonMobil recorded a loss of $11 million (excluding identified items), compared to a profit of $215 million in the year-ago quarter. The segment was affected by weaker margins and higher seasonal spending.

Specialty Products

This unit recorded a profit of $682 million (excluding identified items), down from $759 million in the year-ago quarter. The segment was impacted by higher seasonal spending, partially offset by higher margins due to reduced feed costs.

Financials

ExxonMobil generated a cash flow of $13.7 billion from operations and asset divestments. The company generated free cash flow of $5.6 billion. Its capital and exploration spending amounted to $8.1 billion.

Total cash and cash equivalents were $10.7 billion, and long-term debt totaled $34.2 billion.

Guidance

For 2026, the company’s cash capital expenditures are projected to be between $27 billion and $29 billion. ExxonMobil plans to repurchase shares worth $20 billion in 2026, under reasonable market conditions.

The company expects Permian Basin production to average 1.8 million barrels of oil equivalent per day (Moebd), contributing to total upstream production of 4.9 Moebd in 2026.

XOM’s Zacks Rank and Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Subsea7 S.A. SUBCY and W&T Offshore WTI. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Subsea7 and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.