Exxon says it’s well-positioned to handle impact of tariffs, as it grows production by 20%
Oil major doesn’t see a material impact to its development plans despite tariffs
BySteve Gelsi
Last Updated: May 2, 2025 at 12:03 p.m. ET
First Published: May 2, 2025 at 6:51 a.m. ET
Exxon says it's well-positioned to handle impact of tariffs, as it grows production by 20%
Exxon says it's well-positioned to handle impact of tariffs, as it grows production by 20%
Provided by Dow Jones May 2, 2025 12:03pm
By Steve Gelsi
Oil major doesn't see a material impact to its development plans despite tariffs
Exxon Mobil Corp. Chief Executive Darren Woods said the oil company currently doesn't see a material impact from tariffs on its project-development efforts, as it narrowly topped analyst estimates for first-quarter profit and grew its production.
Exxon Mobil (XOM) has launched a "full-court effort" to manage the impact of tariffs, which have contributed to economic uncertainty, caused "significant volatility" and raised the prospects of slower growth, Woods said on the company's quarterly conference call with analysts.
"We're seeing significant downward pressure on prices and margins in this environment, [and] it's more important than ever to focus on what we can control," Woods said.
So far, Exxon has seen nothing that would lead it to change its project portfolio or the expected returns associated with them, Woods said.
After announcing a series of tariffs in April, President Donald Trump suspended many of those levies for 90 days to allow more time for trade negotiations.
The Trump administration, as well as other governments around the globe, are aware of the role that oil and gas play in economic growth and have a mutual interest in resolving tariff issues, Woods said.
"It's still early days, but I have a lot of confidence that the organization has got a lot of levers to pull," Woods said. "I would also tell you that I think there is a sensitivity by the Trump administration and other governments around the world to to not severely impact the energy sector and the products that we produce."
In its first-quarter results, Exxon reported that production increased 20% to 4.55 million oil-equivalent barrels a day, with a boost of 767,000 barrels attributed largely to the company's $60 billion acquisition of Pioneer Natural Resources, which closed in May 2024.
