ExxonMobil expects first-quarter global oil-equivalent production to drop approximately 6% compared to the fourth quarter of 2025. War-related outages and disruptions at facilities in Qatar and the United Arab Emirates caused the decline. These events specifically impacted liquefied natural gas (LNG) production.
The conflict has pushed oil prices above $100 per barrel. Damage occurred at two Qatari LNG trains where ExxonMobil holds a stake. Public reports suggest repairs will require a prolonged period. The company has not provided a specific timeline for resuming normal operations.
Surging commodity prices are expected to increase overall earnings for oil companies. ExxonMobil noted that rapid price hikes will create a negative near-term accounting impact on earnings due to inventory valuation methods. The company still forecasts higher earnings per share than the previous quarter, excluding these temporary accounting effects.