Exxon Mobil Corp said on Monday its quarterly profit fell 21 percent as weak oil prices took a toll, but results topped Wall Street expectations due to a tax adjustment and higher earnings from its chemicals business.
Shares of Exxon rose 1.2 percent to $88.46 in mid-day New York Stock Exchange trading.
Global oil markets are oversupplied at a time when demand is waning, sending crude prices tumbling by more than half since June. Investors are closely watching oil companies' responses to the collapse, which has included job cuts and reduced capital expenditure budgets.
Mindful of lower oil prices, Exxon said it will slash its share buyback program in the first quarter by more than half to $1 billion. In the fourth quarter, Exxon spent $3 billion on share repurchases. Rival Chevron Corp said on Friday it suspended its share buyback program for the year.
Exxon, which plans to release its 2015 capital expenditure plan on March 4, spent $38.5 billion in 2014, down $4 billion from 2013. Spending for the oil major peaked at $42.5 billion in 2013, and the company has said it expects annual budgets below $37 billion over the next several years.
The company's investment plan will change, but not very much because Exxon bases its strategy on long-term planning, Jeff Woodbury, Exxon's vice president of investor relations, said on a conference call.