Exxon Mobil Corporation
05/04/2026 | Press release | Distributed by Public on 05/04/2026 10:41
Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Due to rounding, numbers presented may not add up precisely to the totals indicated.
FORWARD-LOOKING STATEMENTS
Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives;
statements of future ambitions and plans; future earnings power; potential addressable markets; and other statements of future
events or conditions are forward-looking statements. Similarly, discussion of future plans related to carbon capture,
transportation and storage, lower-emission fuels, hydrogen and ammonia, direct air capture, ProxximaTM systems, carbon
materials, lithium, low-carbon data centers, and other future plans to reduce emissions and emission intensity of ExxonMobil,
its affiliates, and third parties are dependent on future market factors, such as continued technological progress, stable policy
support and timely rule-making and permitting, and represent forward-looking statements.
Actual future results, including financial and operating performance; potential earnings, cash flow, dividends or shareholder
returns, including the timing and amounts of share repurchases; total capital expenditures and mix, including allocations of
capital to low carbon and other new investments; realization and maintenance of structural cost reductions and efficiency gains,
including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity, including
ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in integrated
Upstream Permian Basin unconventional operated assets by 2035, to eliminate routine flaring in-line with World Bank Zero
Routine Flaring, to reach near-zero methane emissions from operated assets and other methane initiatives; and to meet
ExxonMobil's emission reduction plans and goals, divestment and start-up plans, and associated project plans as well as
technology advances, including the timing and outcome of projects to capture, transport and store CO2, produce hydrogen and
ammonia, produce lower-emission fuels, produce ProxximaTM systems, produce carbon materials, produce lithium, and use
plastic waste as feedstock for advanced recycling; future debt levels and credit ratings; business and project plans, timing, costs,
capacities and profitability; resource recoveries and production rates; and planned Denbury and Pioneer integrated benefits,
could differ materially due to a number of factors.
These include global or regional changes or imbalances in the supply and demand for oil, natural gas, petrochemicals, and
feedstocks and other market factors; economic conditions and seasonal fluctuations that impact prices, differentials, margins,
and volume/mix for our products; developments or changes in local, national, or international laws, regulations, taxes, trade
sanctions, trade tariffs, or policies affecting our business, such as government policies supporting lower carbon and new market
investment opportunities, the punitive European taxes on the oil and gas sector and unequal support for different technological
methods of emissions reduction or evolving, ambiguous and unharmonized voluntary or mandatory standards or extraterritorial
laws and regulations imposed by various jurisdictions related to sustainability and greenhouse gas reporting; timely granting of
governmental permits, licenses, and certifications; uncertain impacts of deregulation on the legal and regulatory environment;
price impacts and the broader government responses to inflationary pressures; changes in interest and exchange rates; variable
impacts of trading activities and derivative positions, including timing effects, on our margins and results each quarter; actions
of co-venturers or partners, competitors and commercial counterparties, including suppliers and customers; government actions
in pursuit of national energy and security policies and priorities affecting our business; the outcome of commercial negotiations,
including final agreed terms and conditions; the outcome of competitive bidding and project awards; the ability to access debt
markets on favorable terms or at all; the occurrence, pace, rate of recovery and effects of public health crises; adoption of
regulatory incentives consistent with law; reservoir performance and optimization, including variability and timing factors
applicable to unconventional resources, the success of new unconventional technologies, and the ability of new technologies to
improve recovery relative to competitors; the level, outcome, and timing of exploration and development projects and decisions
to invest in future reserves and resources; timely completion of construction projects and commencement of start-up operations,
including reliance on third-party suppliers and service providers; final management approval of future projects and any changes
in the scope, terms, costs or assumptions of such projects as approved; the actions of governments, non-governmental
organizations, or other actors against our core business activities and acquisitions, divestitures or financing opportunities; war,
civil unrest, armed hostilities, attacks against the company or industry, and other geopolitical or security disturbances, including
disruption of land or sea transportation routes or distribution or shipping channels; decoupling of economies; disruption,
realignment, or breaking of current or historical trade or military alliances or global trade and supply chain networks; escalating
geopolitical volatility, including regime changes; expropriations, seizure, or capacity, insurance, shipping, import or export
limitations imposed directly or indirectly by governments or laws; opportunities for potential acquisitions, investments or
divestments and satisfaction of applicable conditions to closing, including timely regulatory approvals; the capture of
efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies
without impairing our competitive positioning; unforeseen technical or operating disruptions or difficulties and unplanned
maintenance; the development and competitiveness of alternative energy and emission reduction technologies; consumer
preferences including willingness and ability to pay for reduced emission products; the results of research programs and the
ability to bring new technologies to commercial scale on a cost-competitive basis; and other factors discussed under "Item 1A.
Risk Factors" of ExxonMobil's 2025 Form 10-K.
Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not an
indication that these statements are material to investors or require disclosure in our filing with the SEC or any other regulatory
authority. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be
based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future, including future rule-making.
Actions needed to advance ExxonMobil's 2030 greenhouse gas emission-reductions plans are incorporated into its medium
term business plans, which are updated annually. The reference case for planning beyond 2030 is based on ExxonMobil's
Global Outlook (Outlook) research and publication. The Outlook is reflective of the existing global policy environment and an
assumption of increasing policy stringency and technology improvement to 2050. Current trends for policy stringency and
development of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050. As such, the Outlook does not
project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to
meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and
ExxonMobil's business plans will be updated accordingly. References to projects or opportunities may not reflect investment
decisions made by ExxonMobil or its affiliates. Individual projects or opportunities may advance based on a number of factors,
including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement,
insights from the Corporate planning process, and alignment with our partners and other stakeholders. Capital investment
guidance in lower-emission investments is based on our Corporate plan; however, actual investment levels will be subject to the
availability of the opportunity set and public policy support, and focused on returns.
The term "project" as used in this report can refer to a variety of different activities and does not necessarily have the same
meaning as in any government payment transparency reports.
Overview
Supply disruptions driven by geopolitical events in the Middle East impacted market conditions during the first quarter of 2026.
March experienced the largest ever monthly gain in oil prices driven by reduced global oil supply. Despite a sharp increase in
March, first quarter 2026 average crude oil prices increased slightly relative to fourth quarter 2025, remaining in the middle of
the 10-year historical range (2010-2019). Significant LNG supply decline in March resulted in higher prices in Europe and
Asia, driving natural gas prices above the 10-year average. Feedstock shortages resulted in lower refinery runs in the Middle
East and Asia with global industry refining margins remaining above the 10-year historical range. Chemical margins remained
at bottom of cycle, well below the 10-year range, because of higher feedstock costs, particularly in Asia.
During 2025, the U.S. and other countries implemented and adjusted a variety of trade-related measures, including tariffs on
certain imports. Based on the Corporation's assessment of these actions and their effects to date, we do not expect them to have
a material impact on the Corporation's consolidated financial position, results of operations, or cash flows.
Selected Earnings Driver Definitions
The earnings drivers provide additional visibility into our business results. The Corporation evaluates these drivers periodically
to determine if any enhancements may provide helpful insights to the market. Listed below are descriptions of the earnings
drivers:
Advantaged Volume Growth. Represents earnings impacts from change in volume/mix from advantaged assets, advantaged
projects, and high-value products.
•Advantaged Assets (Advantaged growth projects). Includes Permian, Guyana, and LNG.
•Advantaged Projects. Includes capital projects and programs of work that contribute to Energy, Chemical, and/or
Specialty Products segments that drive integration of segments/businesses, increase yield of higher value products, or
deliver higher than average returns.
•High-Value Products. Includes performance products and lower-emission fuels. Performance products (performance
chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications
through enhanced properties versus commodity alternatives and bring significant additional value to customers and
end-users. Lower-emission fuels refers to fuels with lower life cycle emissions than conventional transportation fuels
for gasoline, diesel and jet transport.
Base Volume. Represents all volume/mix drivers not included in Advantaged Volume Growth defined above.
Structural Cost Savings. Represents after-tax earnings effects of Structural Cost Savings as defined on page 19, including cash
operating expenses related to divestments.
Expenses. Represents all expenses otherwise not included in other earnings drivers.
Estimated Timing Effects. Represents timing effects that are primarily related to unsettled derivatives which are required to be
marked to current period-end prices (mark-to-market), where the associated physical shipments are not reflected in earnings
until the physical transaction is complete. It also includes estimated recognition differences between the settlement of
derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting). Impacts are expected to
unwind in subsequent periods.
Identified Items. Represents individually significant non-operational events with, typically, an absolute corporate total earnings
impact of at least $250 million in a given quarter. The impact of an Identified Item for an individual segment may be less than
$250 million when the item impacts several segments or several periods.
Cash Capital Expenditures (Non-GAAP)
Cash capital expenditures (Cash Capex) is the sum of "Additions to property, plant and equipment", "Additional investments
and advances", and "Other investing activities including collection of advances", reduced by "Inflows from noncontrolling
interests for major projects", each from the Consolidated Statement of Cash Flows, and excludes advances and collections not
related to capital expenditures or equity investments, for example, supply and marketing related advances and associated
collections. This measure is useful for investors to understand the current period cash impact of investments in the business.
|
(millions of dollars)
|
Three Months Ended
March 31,
|
|
|
2026
|
2025
|
|
|
Additions to property, plant and equipment
|
6,470
|
5,898
|
|
Additional investments and advances
|
||
|
Other investing activities including collection of advances
|
(632)
|
(93)
|
|
Inflows from noncontrolling interests for major projects
|
-
|
(22)
|
|
Less: Advances and collections not related to capital expenditures or equity investments
|
(38)
|
-
|
|
Total Cash Capex (Non-GAAP)
|
6,187
|
5,936
|
|
Upstream
|
4,812
|
4,993
|
|
Energy Products
|
||
|
Chemical Products
|
||
|
Specialty Products
|
||
|
Other
|
||
|
Total Cash Capex (Non-GAAP)
|
6,187
|
5,936
|
Structural Cost Savings (Non-GAAP)
Structural Cost Savings describes decreases in cash opex excluding energy and production taxes as a result of operational
efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures that are expected to be
sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $15.6 billion,
which included an additional $0.6 billion in the first three months of 2026. The total change between periods in expenses below
will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign
exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new
business venture development, and early-stage projects. Structural Cost Savings from new operations, mergers and acquisitions,
and new business venture developments are included in the cumulative Structural Cost Savings. Estimates of cumulative annual
structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be
sustainable compared to 2019 levels. Structural Cost Savings are stewarded internally to support management's oversight of
spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize spending through
disciplined expense management.
|
Dollars in billions (unless otherwise noted)
|
Twelve Months
Ended December 31,
|
Three Months Ended
March 31,
|
|||
|
2019
|
2025
|
2025
|
2026
|
||
|
Components of Operating Costs
|
|||||
|
From ExxonMobil's Consolidated Statement of Income
(U.S. GAAP)
|
|||||
|
Production and manufacturing expenses
|
36.8
|
42.4
|
10.1
|
10.7
|
|
|
Selling, general and administrative expenses
|
11.4
|
11.1
|
2.5
|
2.7
|
|
|
Depreciation and depletion (includes impairments)
|
19.0
|
26.0
|
5.7
|
6.8
|
|
|
Exploration expenses, including dry holes
|
1.3
|
1.0
|
0.1
|
0.1
|
|
|
Non-service pension and postretirement benefit expense
|
1.2
|
0.4
|
0.1
|
0.1
|
|
|
Subtotal
|
69.7
|
81.0
|
18.5
|
20.3
|
|
|
ExxonMobil's share of equity company expenses (Non-GAAP)
|
9.1
|
10.6
|
2.6
|
2.3
|
|
|
Total Adjusted Operating Costs (Non-GAAP)
|
78.8
|
91.6
|
21.1
|
22.6
|
|
|
Total Adjusted Operating Costs (Non-GAAP)
|
78.8
|
91.6
|
21.1
|
22.6
|
|
|
Less:
|
|||||
|
Depreciation and depletion (includes impairments)
|
19.0
|
26.0
|
5.7
|
6.8
|
|
|
Non-service pension and postretirement benefit expense
|
1.2
|
0.4
|
0.1
|
0.1
|
|
|
Other adjustments (includes equity company depreciation
and depletion)
|
3.6
|
6.2
|
1.3
|
1.3
|
|
|
Total Cash Operating Expenses (Cash Opex) (Non-GAAP)
|
55.0
|
59.0
|
14.1
|
14.5
|
|
|
Energy and production taxes (Non-GAAP)
|
11.0
|
14.9
|
3.9
|
3.7
|
|
|
Total Cash Operating Expenses (Cash Opex) excluding Energy
and Production Taxes (Non-GAAP)
|
44.0
|
44.1
|
10.2
|
10.8
|
|
|
Change
vs
2019
|
Change
vs
2025
|
Estimated
Cumulative vs
2019
|
|||
|
Total Cash Operating Expenses (Cash Opex) excluding Energy
and Production Taxes (Non-GAAP)
|
0.1
|
0.6
|
|||
|
Market
|
+4.9
|
+0.5
|
|||
|
Activity / Other
|
+10.3
|
+0.6
|
|||
|
Structural Cost Savings
|
-15.1
|
-0.6
|
-15.6
|
||
REVIEW OF FIRST QUARTER 2026 RESULTS
ExxonMobil's first quarter 2026 earnings were $4.2 billion, compared to $7.7 billion a year earlier. The decrease in earnings
was mainly driven by unfavorable mark-to-market effects, higher expenses related to depreciation and Middle East volume
impacts; partly offset by higher prices and margins, increased volumes from advantaged Upstream investments in Guyana and
the Permian and structural cost savings. Cash capital expenditures were $6.2 billion, up $0.3 billion from first quarter 2025.
UPSTREAM
|
Upstream Financial Results
|
Three Months Ended
March 31,
|
|
|
(millions of dollars)
|
2026
|
2025
|
|
Earnings (loss) (U.S. GAAP)
|
||
|
United States
|
1,574
|
1,870
|
|
Non-U.S.
|
4,163
|
4,886
|
|
Total
|
5,737
|
6,756
|
|
Upstream First Quarter Earnings Driver Analysis (millions of dollars)
|
||||
Price - Decreased earnings by $280 million, on lower gas realizations, partially offset by higher crude realizations.
Advantaged Volume Growth - Increased earnings by $610 million, mainly driven by record Guyana production, partially offset
by Middle East disruption impacts.
Base Volume - Decreased earnings by $380 million, from divestments and Kazakhstan downtime.
Structural Cost Savings - Increased earnings by $170 million.
Expenses - Decreased earnings by $650 million due to higher depreciation.
Other - Increased earnings by $200 million, primarily driven by one-time tax items.
Estimated Timing Effects - Decreased earnings by $690 million, mainly from unfavorable derivatives mark-to-market impacts
to be reversed over time.
|
Upstream Operational Results
|
Three Months Ended
March 31,
|
|
|
2026
|
2025
|
|
|
Net production of crude oil, natural gas liquids, bitumen and synthetic oil
(thousands of barrels daily)
|
||
|
United States
|
1,586
|
1,418
|
|
Canada/Other Americas
|
||
|
Europe
|
||
|
Africa
|
||
|
Asia
|
||
|
Australia/Oceania
|
||
|
Worldwide
|
3,297
|
3,139
|
|
Net natural gas production available for sale
(millions of cubic feet daily)
|
||
|
United States
|
3,589
|
3,266
|
|
Canada/Other Americas
|
||
|
Europe
|
||
|
Africa
|
||
|
Asia
|
2,500
|
3,457
|
|
Australia/Oceania
|
1,236
|
1,256
|
|
Worldwide
|
7,779
|
8,470
|
|
Oil-equivalent production (1)
|
4,594
|
4,551
|
|
(thousands of oil-equivalent barrels daily)
|
||
|
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
|
||
|
Upstream Additional Information
(thousands of barrels daily)
|
Three Months Ended
March 31,
|
|
Volumes reconciliation (Oil-equivalent production) (1)
|
|
|
2025
|
4,551
|
|
Entitlements - Net Interest
|
(27)
|
|
Entitlements - Price / Spend / Other
|
(7)
|
|
Government Mandates
|
(4)
|
|
Divestments
|
(71)
|
|
Growth / Other
|
|
|
2026
|
4,594
|
|
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
|
|
|
1Q 2026
versus
1Q 2025
|
1Q 2026 production of 4.6 million oil-equivalent barrels per day increased 43 thousand oil-
equivalent barrels per day from 1Q 2025, driven by Permian and Guyana growth, partially offset
by Middle East disruptions and Kazakhstan downtime.
|
|||
Listed below are descriptions of ExxonMobil's volumes reconciliation drivers which are provided to facilitate understanding of
the terms.
Entitlements - Net Interest are changes to ExxonMobil's share of production volumes caused by non-operational changes to
volume-determining drivers. These drivers consist of net interest changes specified in Production Sharing Contracts (PSCs),
which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity
upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as
a result of the termination or expiry of a concession. Once a net interest change has occurred, it typically will not be reversed by
subsequent events, such as lower crude oil prices.
Entitlements - Price / Spend / Other are changes to ExxonMobil's share of production volumes resulting from temporary
changes to non-operational volume-determining drivers. These drivers include changes in oil and gas prices or spending levels
from one period to another. According to the terms of contractual arrangements or government royalty regimes, price or
spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil. For example, at
higher prices, fewer barrels are required for ExxonMobil to recover its costs. These effects generally vary from period to period
with field spending patterns or market prices for oil and natural gas. Such drivers can also include other temporary changes in
net interest as dictated by specific provisions in production agreements.
Government Mandates are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions
imposed by governments.
Divestments are reductions in ExxonMobil's production arising from commercial arrangements to fully or partially reduce
equity in a field or asset in exchange for financial or other economic consideration.
Growth and Other comprise all other operational and non-operational drivers not covered by the above definitions that may
affect volumes attributable to ExxonMobil. Such drivers include, but are not limited to, production enhancements from project
and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field
decline, and any fiscal or commercial terms that do not affect entitlements.
ENERGY PRODUCTS
|
Energy Products Financial Results
|
Three Months Ended
March 31,
|
|
|
(millions of dollars)
|
2026
|
2025
|
|
Earnings (loss) (U.S. GAAP)
|
||
|
United States
|
||
|
Non-U.S.
|
(1,923)
|
|
|
Total
|
(1,262)
|
|
|
Energy Products First Quarter Earnings Driver Analysis (millions of dollars)
|
||||
Margin - Increased earnings by $2,420 million, including strong results from trading and optimization.
Advantaged Volume Growth - Increased earnings by $150 million.
Base Volume - Decreased earnings by $260 million, mainly driven by Middle East supply disruptions.
Structural Cost Savings - Increased earnings by $160 million.
Expenses - Decreased earnings by $250 million, driven by scheduled maintenance and growth projects.
Other - Decreased earnings by $270 million, driven by unfavorable foreign exchange rate effects.
Estimated Timing Effects - Decreased earnings by $3,330 million, on unfavorable derivative mark-to-market impacts.
Identified Items - 1Q26 $(706) million loss due to supply disruptions in the Middle East preventing physical shipments
associated with hedges.
|
Energy Products Operational Results
|
Three Months Ended
March 31,
|
|
|
(thousands of barrels daily)
|
2026
|
2025
|
|
Refinery throughput
|
||
|
United States
|
1,795
|
1,789
|
|
Canada
|
||
|
Europe
|
||
|
Asia Pacific
|
||
|
Other
|
||
|
Worldwide
|
3,494
|
3,810
|
|
Energy Products sales (1)
|
||
|
United States
|
3,214
|
2,728
|
|
Non-U.S.
|
2,416
|
2,555
|
|
Worldwide
|
5,630
|
5,283
|
|
Gasoline, naphthas
|
2,214
|
2,162
|
|
Heating oils, kerosene, diesel
|
1,672
|
1,724
|
|
Aviation fuels
|
||
|
Heavy fuels
|
||
|
Other energy products
|
1,158
|
|
|
Worldwide
|
5,630
|
5,283
|
|
(1) Data reported net of purchases/sales contracts with the same counterparty.
|
||
CHEMICAL PRODUCTS
|
Chemical Products Financial Results
|
Three Months Ended
March 31,
|
|
|
(millions of dollars)
|
2026
|
2025
|
|
Earnings (loss) (U.S. GAAP)
|
||
|
United States
|
||
|
Non-U.S.
|
(209)
|
|
|
Total
|
||
|
Chemical Products First Quarter Earnings Driver Analysis (millions of dollars)
|
||||
Margin - Compressed margins decreased earnings by $340 million on lower realizations and increased feed costs.
Advantaged Volume Growth - Increased earnings by $50 million.
Base Volume - Increased earnings by $90 million.
Structural Cost Savings - Increased earnings by $70 million.
Expenses - Decreased earnings by $40 million.
Other - Increased earnings by $10 million.
|
Chemical Products Operational Results
|
Three Months Ended
March 31,
|
|
|
(thousands of metric tons)
|
2026
|
2025
|
|
Chemical Products sales (1)
|
||
|
United States
|
1,904
|
1,706
|
|
Non-U.S.
|
3,455
|
3,070
|
|
Worldwide
|
5,358
|
4,776
|
|
(1) Data reported net of purchases/sales contracts with the same counterparty.
|
||
SPECIALTY PRODUCTS
|
Specialty Products Financial Results
|
Three Months Ended
March 31,
|
|
|
(millions of dollars)
|
2026
|
2025
|
|
Earnings (loss) (U.S. GAAP)
|
||
|
United States
|
||
|
Non-U.S.
|
||
|
Total
|
||
|
Specialty Products First Quarter Earnings Driver Analysis (millions of dollars)
|
||||
Margin - Compressed margins decreased earnings by $110 million on increased feed costs.
Advantaged Volume - Increased earnings by $40 million.
Base Volume - Decreased earnings by $10 million.
Structural Cost Savings - Increased earnings by $40 million.
Expenses - Increased earnings by $10 million.
Other - Increased earnings by $30 million.
|
Specialty Products Operational Results
|
Three Months Ended
March 31,
|
|
|
(thousands of metric tons)
|
2026
|
2025
|
|
Specialty Products sales (1)
|
||
|
United States
|
||
|
Non-U.S.
|
1,439
|
1,463
|
|
Worldwide
|
1,976
|
1,936
|
|
(1) Data reported net of purchases/sales contracts with the same counterparty.
|
||
CORPORATE AND FINANCING
|
Corporate and Financing Financial Results
|
Three Months Ended
March 31,
|
|
|
(millions of dollars)
|
2026
|
2025
|
|
Earnings (loss) (U.S. GAAP)
|
(1,053)
|
(798)
|
Corporate and Financing expenses were $1,053 million for the first quarter of 2026, $255 million higher than the first quarter of
2025, due to lower interest income and the absence of favorable tax items.
(1) Net debt is total debt of $47.7 billion less $8.4 billion of cash and cash equivalents excluding restricted cash . Net debt to capital ratio is net debt divided by
net debt plus total equity of $261.0 billion. Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet.
LIQUIDITY AND CAPITAL RESOURCES
|
(millions of dollars)
|
Three Months Ended
March 31,
|
|
|
2026
|
2025
|
|
|
Net cash provided by/(used in)
|
||
|
Operating activities
|
8,705
|
12,953
|
|
Investing activities
|
(6,006)
|
(4,135)
|
|
Financing activities
|
(4,900)
|
(13,579)
|
|
Effect of exchange rate changes
|
(45)
|
|
|
Increase/(decrease) in cash and cash equivalents
|
(2,246)
|
(4,675)
|
|
Cash and cash equivalents (at end of period)
|
8,435
|
18,512
|
|
Cash flow from operations and asset sales
|
||
|
Net cash provided by operating activities (U.S. GAAP)
|
8,705
|
12,953
|
|
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns
of investments
|
1,823
|
|
|
Cash flow from operations and asset sales (Non-GAAP)
|
8,924
|
14,776
|
|
Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds
associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business
and financing activities, including shareholder distributions.
|
||
Cash flow from operations and asset sales in the first quarter of 2026 was $8.9 billion, a decrease of $5.9 billion from the
comparable 2025 period.
Cash provided by operating activities totaled $8.7 billion for the first three months of 2026, $4.2 billion lower than 2025. Net
income including noncontrolling interests was $4.5 billion, a decrease of $3.6 billion from the prior year period. The adjustment
for the noncash provision of $6.8 billion for depreciation and depletion was up $1.1 billion from 2025. Changes in operational
working capital were a reduction of $1.8 billion during the period. All other items net decreased cash flows by $0.8 billion in
2026 versus an increase of $0.1 billion in 2025. See the Condensed Consolidated Statement of Cash Flows for additional
details.
Investing activities for the first three months of 2026 used net cash of $6.0 billion, an increase of $1.9 billion compared to the
prior year. Spending for additions to property, plant and equipment of $6.5 billion was $0.6 billion higher than 2025. Proceeds
from asset sales were $0.2 billion, a decrease of $1.6 billion compared to the prior year. Net investments and advances
decreased $0.3 billion from $0.1 billion in 2025.
Net cash used in financing activities was $4.9 billion in the first three months of 2026, including $4.9 billion for the purchase of
33.6 million shares of ExxonMobil stock, as part of the previously announced buyback program. This compares to net cash
used in financing activities of $13.6 billion in the prior year. Total debt at the end of the first quarter of 2026 was $47.7 billion
compared to $43.5 billion at year-end 2025. The Corporation's debt to total capital ratio was 15.4 percent at the end of the first
quarter of 2026 compared to 14.0 percent at year-end 2025. The net debt to capital ratio (1) was 13.1 percent at the end of the
first quarter, an increase of 2.1 percentage points from year-end 2025. The Corporation's capital allocation priorities are
investing in competitively advantaged, high-return projects, maintaining a strong balance sheet, and sharing our success with
our shareholders through more consistent share repurchases and a growing dividend. The Corporation distributed a total of $4.3
billion to shareholders in the first three months of 2026 through dividends.
The Corporation has access to significant capacity of long-term and short-term liquidity. Internally generated funds are
expected to cover the majority of financial requirements, supplemented by long-term and short-term debt. Commercial paper is
used to balance short-term liquidity requirements and is reflected in "Notes and loans payable" on the Consolidated Balance
Sheet, with changes in outstanding commercial paper between periods included in the Consolidated Statement of Cash Flows.
The Corporation had undrawn short-term committed lines of credit of $7.3 billion and undrawn long-term committed lines of
credit of $0.3 billion as of the end of first quarter 2026.
The Corporation's financial strength enables it to make large, long-term capital expenditures. Cash capex in the first quarter of
2026 was $6.2 billion, up $0.3 billion from the first quarter of 2025. The Corporation plans to invest in the range of $27 billion
to $29 billion in 2026. Actual spending could vary depending on the progress of individual projects.
The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.
Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in
either gains or losses. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio
through acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating
acquisitions include strategic fit, cost synergies, potential for future growth, low cost of supply, and attractive valuations.
Acquisitions may be made with cash, shares of the Corporation's common stock, or both.
Litigation and other contingencies are discussed in Note 7 to the unaudited Condensed Consolidated Financial Statements.
TAXES
|
(millions of dollars)
|
Three Months Ended
March 31,
|
|
|
2026
|
2025
|
|
|
Income taxes
|
2,495
|
3,567
|
|
Effective income tax rate
|
40%
|
34%
|
|
Total other taxes and duties (1)
|
6,775
|
7,066
|
|
Total
|
9,270
|
10,633
|
|
(1) Includes "Other taxes and duties" plus taxes that are included in "Production and manufacturing expenses" and "Selling, general and
administrative expenses", each from the Consolidated Statement of Income.
|
||
Total taxes were $9.3 billion for the first quarter of 2026, a decrease of $1.4 billion from 2025. Income tax expense was $2.5
billion compared to $3.6 billion in the prior year. The effective income tax rate, which is calculated based on consolidated
company income taxes and ExxonMobil's share of equity company income taxes, was 40 percent, 6 percent higher than the
prior year period driven by portfolio mix effects impacted by derivative mark-to-market losses. Total other taxes and duties
decreased by $0.3 billion to $6.8 billion.
Exxon Mobil Corporation published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 04, 2026 at 16:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]