Exxon CEO Highlights 15% Of Gulf Region Production Impacted By Iran War — Says Company Is ‘Built To Perform Through Disruption’

• Exxon CEO Darren Woods said the war in Iran caused supply disruptions that prevented physical deliveries.
• He said the company's strategic investments are generating benefits that may not be booked in the quarter.
• The company reported net production of 4.6 million oil-equivalent barrels per day in the quarter, with Guyana notching a new quarterly record of over 900,000 gross barrels per day.

Exxon Mobil (XOM) Chief Executive Officer Darren Woods reportedly said on Friday that roughly 15% of the company's Gulf region production has been impacted by the conflict in the Middle East. 

In an interview with CNBC, Woods noted that the closure of the Strait of Hormuz prevented the physical delivery of barrels and disrupted supply. The Middle East region accounts for Exxon's 20% of the total production.

Shares of Exxon Mobil were back in focus on Friday after the energy giant reported first-quarter earnings that beat analyst estimates despite significant operational impacts from the war in Iran.

When asked about energy prices in the near term, Woods added that the world has seen only a mitigated impact from the loss of oil supply and price increases, as strategic petroleum reserves were released and many shipments were already in transit when the Strait of Hormuz closed.

He further warned that, over time, if the Strait of Hormuz remains closed, additional sources of supply may run out of inventory, reaching the minimum working inventory for the commercial segments, leaving only the strategic petroleum reserves. This will have an increasing impact on energy prices.

However, in terms of production capacity, the Exxon CEO said the company is in a position to respond and take advantage of its global footprint, and it remains available to meet the most critical demands. 

“We have grown advantaged volumes, optimized our operations, reduced structural costs, and strengthened our earnings power,” said Woods.

Exxon’s Quarterly Earnings

The company reported adjusted earnings of $1.16 per share, above the consensus estimate of $0.98, and revenue of $85.14 billion, surpassing Wall Street Expectations of $81.13 billion for the same period.

“Exxon is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles,” said Woods.

He also noted that the company’s strategic investments are generating benefits that are "not necessarily booked in the quarter.”

The company said that the net production in the first quarter hit 4.6 million oil-equivalent barrels per day, with Guyana notching a new quarterly record of over 900,000 gross barrels per day.

How Did Retail Traders React?

On Stocktwits, retail sentiment surrounding the stock is ‘bearish’ amid ‘normal’ message volumes.

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