aggregated●·Stocks·

Exxon & Chevron Top Q1 Estimates as Profits Slide on Mid-East Disruptions

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Both Exxon Mobil and Chevron beat Wall Street earnings estimates for Q1, even as underlying profits fell sharply. Exxon's net income dropped 36% to $2.2 billion — a five-year low — while Q1 profits overall fell 46% to $4.2 billion versus $7.7 billion a year ago, hurt by Middle East supply disruptions and derivative timing charges. Exxon's adjusted EPS of $1.41 still cleared the $0.95 consensus estimate by a wide margin, and production of crude and related liquids rose 5% year-over-year.

Why it matters

Beating estimates matters more than the headline profit decline here — energy stocks often trade on relative performance versus expectations, not absolute numbers. The 5% production growth and Permian expansion plans signal Exxon is investing for volume even as margins compress. Investors holding integrated oil majors or broad energy ETFs like XLE should note the tension between strong operational execution and a geopolitically fragile supply environment.

Watch next

May 13-14: OPEC+ monitoring committee meeting, where production quotas could shift in response to ongoing Middle East tensions. Mid-May: Q1 earnings from BP and Shell will show whether profit pressure is industry-wide. June 4: Next OPEC+ full ministerial meeting on output policy.

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