ExxonMobil shares dropped 5.5% in premarket trading Monday after the company revealed that conflicts in the Middle East disrupted production at several assets in Qatar and the United Arab Emirates during the first quarter of 2026.
The company told investors that the interruptions are expected to lower global oil-equivalent production by approximately 6% in the first quarter compared with the fourth quarter of 2025. ExxonMobil noted that Middle East assets account for about 20% of its worldwide oil-equivalent production, underscoring the geographic concentration of the impact.
In Qatar, attacks during the quarter affected two liquefied natural gas - LNG - trains in which ExxonMobil holds ownership interests. The company said those assets represented roughly 3% of its 2025 upstream production. Public reports, the company added, indicate the damage will require a prolonged repair period; ExxonMobil said it cannot provide a timeline for restoration of normal operations until it conducts an on-site evaluation.
The disruptions extended beyond upstream output to the company’s Product Solutions business. ExxonMobil estimated that its Middle East assets represent about 5% of global refining and chemical capacity. As a result of reduced crude availability at its Asia Pacific operations, the company expects global Energy Products throughput to fall by roughly 2% in the first quarter.
Operational interruptions also interfered with physical shipments tied to several financial hedges during the quarter. That prevented some deliveries from occurring and produced an earnings effect that ExxonMobil quantified at $0.6 billion to $0.8 billion; the company said those amounts will be recorded as identified items.
Additionally, timing effects related to commodity price movements increased the company’s reported first-quarter costs. ExxonMobil expects timing effects to reduce first-quarter earnings by an estimated $3.5 billion to $4.9 billion, reflecting commodity price increases between December 31, 2025 and March 31, 2026. The company emphasized, however, that excluding timing effects it expects first-quarter earnings per share to exceed fourth-quarter 2025 levels.
Offsetting some of the near-term pressure, ExxonMobil reported that Golden Pass LNG achieved first production from Train 1 at its Sabine Pass terminal on March 30. The company also reiterated plans to increase Permian production to 1.8 million oil-equivalent barrels in 2026.
Bottom line: ExxonMobil is facing a multi-faceted set of near-term headwinds from Middle East production interruptions that affect upstream volumes, Product Solutions throughput and the effectiveness of hedges, while the company highlights new LNG production and higher Permian output as planned offsets for 2026.