Exxon and Shell Hold Firm on Buybacks as Chevron and BP Cut Amid Oil Price Slump

Big Oil's Q1 earnings reveal a divergence in strategy as companies navigate falling crude prices, which hit a four-year low in April. Exxon Mobil and Shell maintained robust share buyback programs, signaling confidence in their production and cost structures. In contrast, Chevron and BP announced cuts to their repurchases, citing tighter margins and market headwinds.

Exxon reported a 20% year-over-year production increase, driven by its Guyana and Permian Basin operations. CEO Darren Woods emphasized the company's resilience, highlighting low costs and stable cash flows. Exxon’s $4.8 billion in Q1 buybacks keeps it on pace for a $20 billion annual target, with a net-debt-to-capital ratio of just 7%.

Meanwhile, Chevron, despite stable production, faced setbacks from asset sales and announced workforce reductions and up to $3 billion in cost cuts. It plans to reduce buybacks to as low as $2 billion in Q2, down from $3.9 billion. The company is also entangled in arbitration over its bid to acquire Hess, a key partner in Exxon’s Guyana venture.

Shell beat earnings forecasts and pledged a $3.5 billion buyback for the next quarter, continuing its 14-quarter streak. BP, however, missed expectations, reporting a 48% profit drop and cutting buybacks to $750 million. Analysts warn BP may underperform again in Q2.

As BP retreats from its green energy pivot and refocuses on oil and gas, it also plans to reduce spending by $500 million and increase asset sales to up to $4 billion. Shell, by contrast, is holding its investment budget steady.

Investor sentiment is now closely tied to how efficiently oil majors can manage capital returns amid volatile prices and shifting energy strategies.