Exxon Mobil 1Q Profit Up 38% On Price Surge; Shares Fall

   DOW JONES NEWSWIRES 

Exxon Mobil Corp.'s (XOM) first-quarter earnings rose 38% as lower refining margins partially offset the big benefit from surging oil prices.

The results slightly missed analysts' expectations, and shares fell 1.7% premarket to $68.03.

Oil producers have seen results bolstered as crude prices have rallied from lows in the depths of the recession. However, the higher crude prices also add to pressures on refining margins.

Exxon, the world's biggest non-governmental oil company, reported a profit of $6.3 billion, or $1.33 a share, up from $4.55 billion, or 92 cents a share, a year earlier. Revenue increased 41% to $90.25 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of $1.41 a share on revenue of $96.41 billion.

Production rose 4.5% on an oil-equivalent basis as segment earnings more than doubled on surging crude-oil prices.

Refining earnings tumbled to $37 million from $1.1 billion on lower margins. Sales also fell on reduced demand.

Exxon said it spent $2.5 billion in the quarter buying back 37 million shares, helping cut the amount of outstanding shares by 0.6%.

The company expects to close its deal for XTO Energy Inc. (XOM) in the current quarter, leading a rush among international oil titans to tap U.S. shale-gas resources for future growth.

-By Tess Stynes and Kevin Kingsbury, Dow Jones Newswires; 212-416-2481; [e-mail]