Exxon, Chevron Beat Q1 Profit Estimates Despite Iran War Outages

Exxon Mobil Corp. and Chevron Corp. posted stronger-than-expected first-quarter earnings as higher oil and natural gas prices outweighed production outages from the Iran war, according to Rigzone. The results, while surpassing analyst estimates, underscore a volatile global energy market impacting major operators with significant interests in North Dakota's Bakken formation.

Surging energy prices boosted Exxon’s first-quarter earnings by $1.7 billion, more than offsetting a $400 million blow from war-related production outages, Rigzone reported. However, roughly 15% of Exxon’s worldwide output remains offline, Chief Financial Officer Neil Hansen said. Exxon’s adjusted profit was $4.9 billion, or $1.16 a share, which was 20 cents higher than the average analyst estimate.

Chevron, while less exposed to Middle East disruptions, saw production dip roughly 5% sequentially. Its adjusted per-share profit reached $1.41, or 51 cents higher than expected, benefiting from surging prices and growth from its new stake in a giant Guyanese field.

Both companies warned that the outlook for the rest of the year is uncertain due to the Strait of Hormuz remaining all but blocked. “The global energy system continues to be under extreme stress,” Chevron Chief Executive Officer Mike Wirth said in an interview on CNBC. Exxon's Hansen noted the challenge of providing guidance, stating, “we really don’t know how long the Strait of Hormuz will remain closed.”

For Bakken operators and the state's oil-dependent economy, the earnings reports highlight a dual dynamic. The high commodity prices that boosted these majors' profits are a positive signal for regional drillers' revenue potential. However, the persistent global supply disruptions and associated uncertainty could complicate long-term planning and investment in the basin.

Exxon, the largest North American oil driller, guided average daily output equivalent to 4.9 million barrels this year but may revise that view as the Iran war chokes Middle East energy flows, Hansen said. This potential revision by a key Bakken player reflects the broader industry's adaptation to a strained supply chain.

While international oil prices have advanced more than 50% since the conflict erupted in late February, crude futures were lower on the day the earnings were released, Rigzone noted. Exxon’s shares dropped 0.8% and Chevron fell 1%. This market reaction indicates that even strong quarterly beats are tempered by forward-looking concerns over logistics and geopolitics, factors that directly influence Bakken development economics.