Exxon Mobil Corp (NYSE:XOM, XETRA:XONA) shares fell 7.5% in early trade on Wednesday after the oil company disclosed the expected impact of the ongoing conflict in the Middle East on its production during the first quarter.
In a regulatory filing, ExxonMobil said the disruptions affected assets in Qatar and the United Arab Emirates, reducing global oil-equivalent production by an estimated 6% compared with the fourth quarter of 2025. The impacted Middle East assets account for roughly 20% of the company’s total production.
The company reported that attacks in Qatar damaged two liquefied natural gas trains in which it holds ownership stakes. These assets represented about 3% of ExxonMobil’s upstream production in 2025.
According to the filing, publicly available information suggests repairs could take an extended period, though the company said it cannot confirm a timeline until a full on-site assessment is completed.
The disruptions also affected ExxonMobil’s downstream operations. Middle East facilities make up approximately 5% of the company’s global refining and chemical capacity. Reduced crude supply to Asia-Pacific operations is expected to lower global Energy Products throughput by around 2% for the quarter.
In addition, supply interruptions prevented the company from completing certain physical shipments tied to financial hedges. ExxonMobil estimates this will result in an earnings impact of between $600 million and $800 million, which will be reported as identified items.
The company also expects timing effects, primarily linked to commodity price increases between late December 2025 and the end of March 2026, to negatively affect first-quarter earnings by $3.5 billion to $4.9 billion.
Despite these headwinds, ExxonMobil said it anticipates first-quarter earnings per share will exceed fourth-quarter 2025 levels when excluding timing-related impacts.