Exxon Mobil on Friday beat Wall Street's estimate for first-quarter profit as higher oil and gas production from Guyana and the Permian basin helped boost earnings.
Profit during the January-March quarter was $7.71 billion or $1.76 per share, beating analyst estimates of $1.73 per share, according to data compiled by LSEG.
Exxon, the largest U.S. oil producer, and the broader energy sector have faced a tumultuous start to the year after U.S. President Donald Trump's global tariff announcements stoked recession fears. Those concerns triggered a slump in oil prices because a weaker economy needs less energy to fuel it.
Trump, who wants lower pump prices for consumers, is executing policies to cut regulations, a move he claims will increase oil and gas output. But with the exception of some liquefied natural gas projects, energy companies generally have not increased investment plans and are bracing for a downturn after oil prices in April fell to a four-year low.
Sustained lower oil prices would lead producers to cut rather than increase spending and drilling.
Exxon's oil and gas production totaled 4.55 million barrels of oil equivalent per day (boepd) during the quarter, up from 3.78 million boepd in the same period last year.
Exxon paid $4.3 billion in dividends and repurchased $4.8 billion in shares during the quarter. The buyback figure puts the company on track to meet its annual share repurchase goal of $20 billion.
"In this uncertain market, our shareholders can be confident in knowing that we're built for this," Exxon CEO Darren Woods said in a statement.
Earnings from oil and gas production were $6.76 billion, up from $5.66 billion in the same period last year.
Refining profits were $827 million, down from $1.38 billion a year ago.
Exxon has been locked in an arbitration battle with rival Chevron CVX.N over Chevron's planned $53 billion acquisition of Hess, which owns a 30% interest in a Guyana oil joint venture that is led by Exxon.
Exxon and CNOOC, the third partner in the consortium, argue they have a first right of refusal to purchase Hess' stake. A hearing in the arbitration case is scheduled for May 26 in London.
Shares of the company were flat in pre-market trading on Friday.
(Reuters - Reporting by Sheila Dang in Houston; Editing by Nia Williams and Emelia Sithole-Matarise)