It was a week when both oil and natural gas prices logged steep losses.
The headlines revolved around supermajor ExxonMobil XOM and Shell’s SHEL Q1 earnings updates. Developments associated with RPC Inc. RES, Equinor ASA EQNR and Matador Resources Company MTDR also grabbed attention.
Overall, it was a catastrophic seven-day period for the sector. West Texas Intermediate (WTI) crude futures plunged more than 10% to close at $61.99 per barrel, while natural gas prices fell some 6% to end at $3.837 per million British thermal units (MMBtu).
The crude price — pressured by mounting recession concerns and an unexpected move by OPEC+ to speed up the rollback of production cuts — fell to its lowest level since 2021.
Meanwhile, the drop in natural gas prices can be linked to mild weather forecasts and concerns that countries hit by President Trump’s new tariffs may retaliate by cutting U.S. LNG imports, reducing overall demand.
1. ExxonMobil hinted that higher commodity prices for oil and natural gas will likely positively impact its first-quarter 2025 earnings. Additionally, increased oil refining margins are expected to boost its first-quarter earnings. The energy major forecast an increase in earnings of $900 million from the previous quarter.
In the first quarter, Brent crude prices came in at an average of $74.98 per barrel, suggesting a 1.3% increase quarter over quarter. However, year over year, the benchmark price witnessed an approximate decrease of 9%. Natural gas prices in the United States were approximately 30% higher in first-quarter 2025 from the fourth quarter of 2024.
Being one of the largest energy firms in the United States, ExxonMobil’s earnings snapshot is closely followed by analysts to understand the broader industry performance. In an SEC filing, ExxonMobil hinted that stronger oil refining margins should contribute an additional $300-$700 million to its earnings relative to the previous quarter. (ExxonMobil Expects Earnings Boost in Q1 From Higher Commodity Prices)
2. Shell, one of the world’s leading energy companies, recently revised its liquefied natural gas (“LNG”) production outlook for the first quarter of 2025. This update comes as a result of severe weather disruptions, specifically cyclones, and unexpected maintenance issues at its facilities in Australia.
In the first-quarter 2025 update note, Shell projected LNG output to fall within a range of 6.4-6.8 million metric tons. This represents a decrease from its prior outlook of 6.6-7.2 million tons, highlighting the challenges faced by the company in maintaining consistent production levels.
Shell’s production cut is primarily attributed to the adverse weather conditions that have been impacting its operations in Australia. The company pointed to the effects of cyclones and unplanned maintenance as key factors behind the revised outlook. The weather-related challenges in the region have created significant disruptions, particularly affecting Shell’s Prelude floating LNG facility in Western Australia. (Shell Cuts Q1 LNG Production Outlook Ahead of Financial Results)
3. RPC has enhanced its presence in the Permian Basin with the acquisition of Pintail Completions, a leading wireline service provider, in a deal valued at approximately $245 million. The move underscores RPC’s commitment to expanding its oilfield services portfolio with high-margin, cash-generating assets.
Pintail, headquartered in Midland, TX, is a well-established name in wireline completions, operating more than 30 active fleet with both conventional and electric wireline units. The acquisition aligns with RPC’s strategy of focusing on service lines that deliver strong profitability and efficient cash conversion. With a robust client base comprising Tier 1 exploration and production (E&P) companies in the Midland and Delaware basins, Pintail is expected to enhance RPC’s standing in the most prolific oil-producing region in the U.S. land market.
With this acquisition, RPC cements its position as a diversified oilfield service leader, leveraging Pintail’s capabilities to drive growth and enhance its operational footprint in the Permian Basin. (RPC Expands Permian Reach With $245M Pintail Acquisition)
4. Equinor, the Norwegian energy giant, has commenced production at the Johan Castberg oil field in the Barents Sea, marking a milestone in Norway’s northernmost offshore oil development. The field, expected to produce for 30 years, is a key asset for Equinor and its partners, Var Energi ASA and Petoro AS.
Production at Johan Castberg began on March 31, 2025, with 12 of the 30 planned wells ready for operation. Equinor expects the field to reach plateau production by the second quarter of 2025, while drilling operations will continue until late 2026. The field comprises the Skrugard, Havis and Drivis discoveries, made between 2011 and 2014, located approximately 100 km north of the Snøhvit field in water depths ranging from 360 to 390 meters.
The Johan Castberg field is developed using a floating production, storage, and offloading (FPSO) vessel tied to a subsea system comprising 30 wells distributed across 10 well templates and two satellite structures. The FPSO has a gross oil production capacity of 220,000 barrels per day (b/d) and a design storage capacity of 1.1 million barrels. The field holds estimated recoverable reserves of 450-650 million barrels of oil. (Equinor Kicks Off Production at Johan Castberg in Barents Sea)
5. Matador Resources announced that it divested its remaining acreage in the Eagle Ford Basin in South Texas. The oil and gas explorer has also discussed the possibility of implementing a stock repurchase program this year over and above its fixed quarterly dividend of 31.25 cents per share.
Through this divestment, Matador Resources exited the Eagle Ford Basin, where it had started developing its acreage position initially. The company stated that while moving forward, it will focus on developing its acreage position in the northern Delaware Basin, also recognized as the most prolific oil and gas basin in the country. Matador Resources owns 200,000 acres in the northern Delaware Basin.
Matador used the proceeds from the sale and a portion of its internal cash flows to pay off part of its borrowings under its credit facility. Notably, in the first quarter of 2025, Matador Resources repaid $180 million and currently has $405 million of debt outstanding under its credit facility. The company has further highlighted that at the end of the first quarter, it had a robust financial position with approximately $1.8 billion in liquidity. Further, in order to strengthen its balance sheet, Matador Resources is pursuing a strategy that involves hedge protection and divestment of non-core assets. (Matador Divests South Texas Assets, Strengthens Balance Sheet)
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM -11.3% -17.4%
CVX -13.7% -8.2%
COP -15.7% -25.7%
OXY -17% -33.7%
SLB -17% -27.3%
RIG - 32.2% -40.7%
VLO -20.4% -22.9%
MPC -16% -25.9%
With oil and gas deep in the red for the week, stocks made a beeline south. The Energy Select Sector SPDR — a popular way to track energy companies — stumbled 15% last week. But over the past six months, the sector tracker has gone down 14.1%.
Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored. Tariff-related developments will also be a key factor in determining price trends.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
RPC, Inc. (RES) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.