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ExxonMobil’s Upstream and Downstream Earnings Fell in Q1

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ExxonMobil’s upstream earnings

ExxonMobil (XOM) posted its first-quarter earnings on April 26. The company missed its earnings estimate. To learn more, read ExxonMobil’s Q1 Earnings Fall Short of Wall Street Estimates.

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In the first quarter, ExxonMobil’s upstream earnings fell from $3.5 billion in the first quarter of 2018 to $2.9 billion in the first quarter. The earnings fell due to lower liquid realizations. The fall was partly offset by increased volumes year-over-year in the first quarter. ExxonMobil’s oil realizations in the United States fell 11% YoY to $53.3 per barrel in the first quarter. The company’s hydrocarbon production rose 2.4% YoY to 3.98 million barrels of oil equivalent per day due to growth in the liquid volume in the Permian Basin.

Total’s (TOT) exploration and production adjusted operating earnings fell 5% from the first quarter of 2018 to $1.7 billion in the first quarter. Chevron’s (CVX) adjusted upstream earnings fell 2% YoY to $3.3 billion in the first quarter.

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Downstream and chemical performance

In the first quarter, ExxonMobil’s downstream earnings fell to -$0.3 billion due to lower margins. The margins were impacted by lower industry fuel margins and narrower North American oil spreads. Higher planned maintenance impacted the segment’s earnings.

ExxonMobil’s Chemical segment’s earnings fell 49% from the first quarter of 2018 to $0.5 billion in the first quarter mainly due to lower margins.

Overall, ExxonMobil’s earnings fell from $4.7 billion in the first quarter of 2018 to $2.4 billion in the first quarter due to lower upstream, downstream, and chemical earnings.

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