Exxon Mobil (NYSE: XOM) shares were trading lower Friday morning after the oil major reported first-quarter earnings that fell short of analyst expectations. The company posted earnings per share of $2.06, missing the consensus estimate of $2.18, while revenue of $83.1 billion came in roughly in line with forecasts.
The miss was largely attributed to weaker downstream margins as refinery throughput normalized and product cracks compressed from the elevated levels seen through much of last year. Upstream production, meanwhile, held steady at 4.4 million oil-equivalent barrels per day, with continued growth from Guyana and the Permian Basin offsetting natural declines elsewhere in the portfolio.
"Our underlying business performance remains strong, and we continue to deliver industry-leading returns to shareholders," CEO Darren Woods said on the call, pointing to $9.1 billion returned via dividends and buybacks during the quarter.
What it means for Canadian investors
The reaction in Houston quickly carried north, with Canadian Natural Resources (TSX: CNQ) and Suncor (TSX: SU) trading off in sympathy at the open before recovering as crude held above $78 a barrel. Analysts at RBC noted that Canadian producers continue to trade at a discount to U.S. peers despite stronger free cash flow yields.
Looking ahead, the focus shifts to next week's central bank decisions on both sides of the border, with energy demand expectations likely to remain a key driver of sector performance through the second quarter.
