January 29, 2026
Finance

ExxonMobil's Q4 Outlook: Steady Refining Gains Cushion Lower Crude Prices Amid Venezuela Re-Entry Talks

Integrated Operations and Expansion Plans Poised to Sustain Earnings as Geopolitical Developments Add Complexity

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Summary

ExxonMobil approaches its fourth-quarter earnings announcement facing headwinds from declining upstream prices but supported by strong refining margins and production growth in key regions. Market watchers anticipate that ongoing cost efficiencies and strategic project startups will bolster the firm's financial performance, even as potential re-engagement with Venezuela introduces geopolitical uncertainty.

Key Points

ExxonMobil is expected to report Q4 EPS of $1.68 on revenues around $82.28 billion, supported by refining strength and increased production in Guyana and the Permian Basin.
The company’s integrated model helps shield it from crude price declines, with ongoing structural cost savings exceeding $14 billion since 2019.
Discussions about potential re-entry into Venezuela’s oil sector under invitation from the Trump administration add a complex geopolitical dimension.
Management projects that ten key projects launching from 2025, including the Yellowtail project in Guyana, will add over $3 billion to 2026 earnings, supported by a $20 billion annual share buyback program.

ExxonMobil Corporation (NYSE: XOM) is gearing up for its fourth-quarter earnings report expected on January 30, confronting a multifaceted environment shaped by falling crude prices and shifting geopolitical signals. The company’s upstream operations face pressure from reduced commodity realizations, yet analysts project that the resilience of its refining business, coupled with record production outputs in Guyana and the Permian Basin, will serve as key buffers to earnings volatility.

Wall Street consensus forecasts position fourth-quarter earnings per share (EPS) at $1.68, against an approximate revenue figure of $82.28 billion, according to data aggregated by Benzinga. These expectations follow a robust prior quarter in which ExxonMobil recorded $7.5 billion in earnings, propelled by peak catalyst refinery throughput and ongoing structural cost reductions that have now exceeded $14 billion since 2019.

Industry experts underscore an important dynamic in ExxonMobil's integrated business model, which some investors view as effectively decoupling from the downside pressure on oil prices. Josh Brown, Chief Executive Officer of Ritholtz Wealth Management, expressed to CNBC his interpretation of the stock's recent advancement as a breakout, citing the company’s role as a defensive portfolio asset amid an inflationary backdrop. He noted that despite crude oil prices declining by roughly 5% in the recent term, ExxonMobil’s internal momentum remained robust.

On the geopolitical horizon, investor attention has honed in on potential developments involving Venezuela. Reports indicate that the Trump administration is encouraging American oil majors, including ExxonMobil, to consider rebuilding Venezuela's energy infrastructure. ExxonMobil leadership has conveyed a willingness to evaluate a possible re-entry into the Venezuelan market, which is notable given the country’s possession of the globe’s largest proven oil reserves.

Nonetheless, caution prevails among sector specialists. Baron Lamarre, previously head of trading at Petronas, emphasized the necessity for safeguards beyond political assurances to protect assets, mentioning that mechanisms such as “tokenization” might be essential to mitigate expropriation risks historically associated with Venezuelan investments.

Further insights were offered in a discussion on the Schwab Network by Ted Parkhill, CEO of Inclined Investment Advisors, and Brandon Win, a wealth advisor with Karen Financial Group. Both concurred that while large corporations like ExxonMobil are best positioned to undertake the infrastructural initiatives in Venezuela, the scenario remains fraught with uncertainties. Parkhill aligns with a fundamentally bearish view on the oil market, citing oversupply concerns, and regards the Venezuela situation primarily as a volatility factor rather than an immediate value driver.

Looking ahead into 2026, ExxonMobil is reinforcing its "League of Our Own" strategy, with management affirming that the planned startup of ten major projects from 2025 onward—including the significant Yellowtail development in Guyana—are on course to deliver in excess of $3 billion in incremental earnings in 2026. Moreover, the company maintains a substantial annual share repurchase initiative of $20 billion, underscoring its commitment to returning capital to shareholders even amidst prevailing market fluctuations.

ExxonMobil's stock price performance reinforces investor confidence, having advanced approximately 15.51% over the past month and 14.33% year-to-date in 2026. Its six-month and one-year appreciations stand at 23.46% and 27.34% respectively. According to the Benzinga Edge Stock Rankings, ExxonMobil holds a strong price trend across short-, medium-, and long-term periods, though it exhibits a weaker growth ranking.

These metrics, along with operational developments and geopolitical factors, will be closely monitored as the company announces its upcoming earnings, offering further clarity on its ability to navigate a challenging energy market while capitalizing on expansion opportunities.

Risks
  • Declining upstream oil prices may dampen earnings despite refining resilience.
  • Political risks in Venezuela remain significant, with concerns over asset expropriation and investment security.
  • Oil market oversupply and global volatility may impact future profitability and project returns.
  • Uncertainty surrounding the geopolitical environment could affect strategic initiatives and investor sentiment.
Disclosure
Education only / not financial advice
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