XOM · 10-Q · 2026Q1 · Full report
Operating Expense Trends
EXXON MOBIL CORP · 2026-05-04 · Importance 54 · Surprise 40 · Contradicted
Depreciation and depletion expense (includes impairments) increased to $6,771 million in the three months ended March 31, 2026 from $5,702 million a year earlier, an increase of $1,069 million (≈19%). Management cites higher depreciation as a contributor to decreased earnings in the quarter (Upstream Expenses driver — decreased earnings by $650 million). The company reports cumulative Structural Cost Savings of $15.6 billion relative to 2019 levels, which included an additional $0.6 billion in the first three months of the year. Total Cash Operating Expenses (non-GAAP) excluding energy and production taxes were largely flat year-over-year ($10.2 billion vs $10.8 billion for the quarter comparison shown in the Structural Cost Savings disclosure).
Key facts
- Energy Products expenses decreased earnings by $250 million, driven by scheduled maintenance and growth projects. source
- Chemical Products expenses decreased earnings by $40 million in the first quarter. source
- Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes for the twelve months ended and three months ended (values shown) total $44.0 billion and $10.2 billion respectively for the prior year comparison and $44.1 billion and $10.8 billion respectively for the current — showing small changes reported in the table. source
- Production and manufacturing expenses for the three months ended March 31, 2026: $10,695 million. source
- Depreciation and depletion (includes impairments) for the three months ended March 31, 2026 on the consolidated statement of income: $6,771 million. source
- Specialty Products expenses increased earnings by $10 million in the first quarter. source
- Selling, general and administrative expenses for the three months ended March 31, 2026: $2,684 million. source
- The consolidated statement shows 'Other taxes and duties' for the three months ended March 31, 2026: $5,736 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -0.7% | Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes for the twelve months ended and three months ended (values… |
| operating_income | negative | realized | -0.3% | Energy Products expenses decreased earnings by $250 million, driven by scheduled maintenance and growth projects. |
| operating_income | negative | realized | -0.1% | Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes for the twelve months ended and three months ended (values… |
| operating_income | negative | realized | -0.1% | Chemical Products expenses decreased earnings by $40 million in the first quarter. |