XOM · 10-Q · 2026Q1 · Full report

Commodity Derivatives Impacts

EXXON MOBIL CORP · 2026-05-04 · Importance 59 · Surprise 60 · No source text

The Corporation reported before‑tax realized and unrealized losses on commodity derivatives of $3.8 billion for the period ended March 31, 2026. Estimated timing effects related to unsettled derivatives reduced earnings by $690 million in the quarter and are expected to reverse over time. Derivative assets and liabilities show large gross positions (derivative assets total gross $50,594 million and derivative liabilities gross $53,309 million before netting as of March 31, 2026) with net carrying values presented on the balance sheet lines. Management states the commodity derivatives are not accounted for under hedge accounting and are used both to manage commodity price risk and for trading returns.

Key facts

• Energy Products estimated timing effects decreased earnings by $3,330 million on unfavorable derivative mark-to-market impacts. source
• Identified items in 1Q26 included a $706 million loss due to supply disruptions in the Middle East preventing physical shipments associated with hedges. source
• At March 31, 2026, the Corporation had $1.9 billion of collateral under master netting arrangements not offset against derivatives (March 31, 2026) and $0.5 billion at December 31, 2025. source
• Derivative assets fair value gross total at March 31, 2026: $50,594 million; derivative liabilities fair value gross total at March 31, 2026: $53,309 million. source
• The Corporation reported before-tax realized and unrealized losses of $3.8 billion for the period ended March 31, 2026 related to commodity derivatives held for trading purposes. source

Impact estimates