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Exxonmobil's stock took a hit because crude oil prices plunged to lower than four years in April.
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The company, however, has just reported strong figures for the first quarter.
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The oil giant is also confident to reach its 2030 goals.
Exxonmobil I Declared 2025 on a solid note, beating the market and rallying 10.6% in the first quarter of the year. The petroleum stock, however, made a quick -turn in April to abandon all these quarter gains, then some – it dropped 11.2% during the month, according to data provided by S&P Global Market Intelligence.
What triggered the inversion in Exxonmobil's stock?
Exxonmobil's stock plunged the first week of April alongside crude oil prices. The radical prices of President Donald Trump and a trade war went around the oil markets, sending the Brents and Intermediate Brut Petroleum prices (WTI) from Brent and West Texas (WTI) plunging more than 15% each in April at downs of almost four years. Industry experts were already nervous because they expected the OPEC + to increase production despite the drop in oil prices.
As feared, the eight members of OPEC + announced a larger than expected production increase of 411,000 barrels per day for June 3.
Exxonmobil is the largest oil company in the United States, and its main upstream benefits and cash flows are closely linked to raw material prices. The prices of diving oil and the fears of a recession are looming, several analysts have also reduced their price objectives on exxonmobil actions until April, exacerbating the fall of the stock.
Scooter bank Analyst Paul Cheng, for example, reduced the purpose of the Exxonmobil action course by $ 140 per share to $ 115 per share in early April. UBS Analyst Josh Silverstein, meanwhile, cut the oil cattleThe price target of twice last month at $ 131 per share. The fears of a slowdown and a decrease in profits estimated most of these price target cuts.
Exxonmobil, however, has just beat analysts' estimates on his first quarter income.
Exxonmobil announced its first quarter number on May 2. Although its upstream production jumped by 20% thanks to its acquisition of pioneering natural resources last year, the benefits of Exxonmobil fell by almost 15% from one year to the next to $ 1.76 per share due to low prices for crude oil and the drop in refining margins, among others. However, he has always beaten the average BPA estimates of $ 1.74 per share.
Exxonmobil also continues to generate solid cash flows despite a difficult commercial environment. In the first quarter, he generated $ 13 billion Treasury flow of operations (CFO) and $ 8.8 billion in available cash flows, up 6% and 10% sequentially, respectively. Exxonmobil distributed $ 9.1 billion to its shareholders during the quarter, including $ 4.3 billion in dividends and $ 4.8 billion in shareholdings.
