ExxonMobil has flagged a hit to its Middle East operations in light of the ongoing situation in the region and related disruption, but the energy giant still expects to post higher first-quarter earnings compared to the end of 2025.
The oil and gas major revealed that ongoing disruptions in the Middle East, a region accounting for roughly 20 per cent of its global production, will see its total oil-equivalent output slide by 6 per cent in the first quarter compared with the fourth quarter 2025.
The most acute damage occurred in Qatar, where prolonged repairs are required for two liquefied natural gas (LNG) trains following first-quarter attacks. These assets accounted for approximately 3 per cent of 2025 upstream production.
While ExxonMobil remains the operator of several major joint ventures in the Gulf, including the Upper Zakum field in the UAE, it has yet to provide a timeline for when the Qatari assets will return to normal operations.
The company expects Middle East disruptions and reduced crude availability at Asia Pacific operations to lower global energy products throughput by approximately 2 per cent in the first quarter.
Despite the physical supply crunch, ExxonMobil anticipates earnings per share to outpace the fourth quarter of 2025, provided unfavourable timing effects are excluded.
These accounting mismatches, driven by a sharp spike in commodity prices between December and March, resulted in a temporary paper loss of between US$3.5 billion and US$4.9 billion.
The company explained that while its financial hedges are marked to current high market prices, the physical oil and gas sitting in inventory are valued at older, lower costs. This creates a mismatch that typically unwinds as a profit in subsequent quarters.
To offset the volatility in the Levant and the Gulf, ExxonMobil is leaning heavily on its domestic American assets. The company confirmed it is fast-tracking production in the Permian Basin, aiming for 1.8 million oil-equivalent barrels daily through 2026.
In addition, the Golden Pass LNG terminal in Texas achieved its first production from Train 1 at its Sabine Pass terminal on March 30.