ExxonMobil's stock price drops due to Middle East production disruptions

2026-04-08 13:13:42

Investing.com – Exxon Mobil’s share price fell 5.5% in pre-market trading on Monday. The company had previously disclosed that the Middle East conflict would disrupt the production of multiple assets in Qatar and the UAE during the first quarter of 2026.

The company expects that these disruptions will reduce first-quarter global oil-equivalent production by about 6% compared with the fourth quarter of 2025. Middle East assets account for about 20% of Exxon Mobil’s global oil-equivalent production.

In Qatar, attacks in the first quarter affected two liquefied natural gas production lines in which Exxon Mobil holds ownership interests. These assets account for about 3% of 2025 upstream production. The company said that, according to publicly reported information, repairs for the damage would require a longer downtime period, but before it completes an on-site assessment, it cannot comment on a timeline for restoring normal operations.

The disruptions also affected the company’s Product Solutions business segment, with Middle East assets accounting for 5% of global refining and petrochemical capacity. Exxon Mobil expects that reduced crude supply to its Asia-Pacific businesses will lower first-quarter global energy products throughput by about 2%.

Supply disruptions prevented physical deliveries related to several financial hedges during the quarter, resulting in a $600 million to $800 million earnings impact, which will be classified as an identified item.

Due to an increase in commodity prices between December 31, 2025 and March 31, 2026, the company expects a time-effect-related negative impact on first-quarter earnings of $3.5 billion to $4.9 billion. Despite these factors, Exxon Mobil expects first-quarter earnings per share to exceed the level of the fourth quarter of 2025 (excluding time effects).

Exxon Mobil announced that first production was achieved on March 30 for the first production train of its Golden Pass liquefied natural gas project at its Sabine Pass terminal. The company also plans to increase production in the Permian Basin to 1.8 million barrels of oil equivalent in 2026.

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