Big oil can cut ransom stake when raw prices are reduced, investors are afraid

If this week Exxon Mobil and Chevron report the results of the first quarter, investors will focus on the way Falling oil prices increased the risk to dividends and ransom shares to the rest of 2025.

Great oil has brought money back to investors through dividends and ransoming strategic cornerstone in its efforts by Woo Wall Street. US President Donald Trump’s global tariff ads have caused fear of recession and weaker demand for oil, which forced the forecasters to reduce the views on oil.

Low prices will give big oil less money to distribute shareholders.

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Great oil has brought money back to investors through dividends and ransoming strategic cornerstone in its efforts by Woo Wall Street. (Getty Images / Getty Images)

“We believe that quarterly results will be marred by the prospects, given the shock of the goods market,” Paul Chen, analyst at Scotabank wrote in the research note.

Investors will look for companies to describe how they plan to cope with a sustainable decline in oil prices, potentially dismantling stock ransoms, reducing projects or incorporations, analysts in this month’s research.

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Exxon and Chevron, two largest oil manufacturers in the US, Friday, and both have to place A Growth of profit From the fourth quarter. Analysts expect a $ 1.73 profit per share for Exxon and $ 2.18 per share for Chevron, LSEG reports.

Exxon and Chevron, the two largest oil manufacturers in the US, report quarterly results on Friday. (Istock / Istock)

The world benchmark for Brent raw prices amounted to $ 74.98 per barrel for the January March quarter, which is 1.3% compared to the previous quarter. US natural gas prices have increased by 30%.

On April 2, oil prices began on a free fall after Trump announced tariffs for trading partners.

Now the oil is hovering 66 dollars per barrel, Specifying analysts for scripting modeling when prices remain in the 60s this year or even decreased in the 50s.

So far, in April, Brent prices were $ 66.79 a barrel. During the month, the US administration reduced the price forecast of $ 74.22 a barrel to $ 67.87 in 2025. In 2026, the EA is now expected to have an average of $ 61.48, decreasing from $ 68.47.

Chevron can reduce ransom when weak oil prices are stored, analysts from four firms said. The second largest US oil company was previously guided by $ 10 to $ 20 billion.

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The company is in the process of cutting up to $ 3 billion in expenses and delaying to 8,000 employees.

Analysts may also be forced to reduce the ransom, which will increase the pressure on their already protruding stocks.

BP logo can be found outside the gas station on September 23, 2021 in London, England. (Photo by Leon Neal/Getty Images) ((Photo by Leon Neal / Getty Images) / Getty Images)

Chevron requires a $ 95 Brent price to cover dividends and ransom over $ 88 for Exxon, RBC Capital Markets reports. Both companies can cover dividends solitude in the middle of $ 50.

Assuming the Brent price of $ 60 in 2025, Global Research Research Chevron Analysts buy $ 11 billion this year, at the low end of the company management, with Exxon to redeem about $ 13.5 billion, lower than $ 20 billion.

Analysts at least three firms agreed that Exxon is in a stronger position for maintenance dividends and ransom fate, pointing to the surplus available on balance and efforts to reduce the cost of oil and gas production. Exxon said he expects to buy $ 20 billion annually by 2026 and paid $ 16.7 billion last year.

Chevron requires a $ 95 Brent price to cover dividends and ransom over $ 88 for Exxon, RBC Capital Markets reports. (Reuters/Angus Mordant/File Photo/Reuters Photos)

“We believe that there is a higher likelihood than many of their peers that (Exxon) can support the pace of payments,” – writes Chen Shatiabanka in the research note.

Exxon and Chevron did not respond to comment requests.

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The likelihood that companies have announced a reduction in capital expenses in the short term, but in the next note on April 11 could come in future quarters.

Shale assets and projects for the transition for green energy will be the most ripe to reduce because shale production can stop faster and start, while energy transition efforts are not yet material for business, he writes. Approximately 55% CHVRON 2025 Capex is in these two segments and Exxon is less than 50%.