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Analysts that cover the energy market are warning that %Oil majors may reduce or cancel their dividends and stock buybacks as the price of crude continues to decline.

The warnings are being issued ahead of the first-quarter earnings reports that are expected on May 2 from %ExxonMobil (NYSE: $XOM ), %Chevron (NYSE: $CVX ), and %Shell (NYSE: $SHEL ).

The oil majors are set to report their Q1 financial results with crude prices having fallen 12% this year, a decline that is certain to pressure financial results and could jeopardize dividend payouts and share repurchase programs.

West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at $60.97 U.S. per barrel, while Brent crude oil, the international standard, is at $64.63 U.S. a barrel.

Oil prices have been steadily eroding on global demand concerns. With the U.S. and Chinese economies slowing, energy demand is softening, leading to a slump in crude prices.

As such, analysts say that the oil majors will likely be looking to adjust production and cut costs for the remainder of this year and leading into 2026.

This has put the dividend and buyback guidance provided by the world’s largest oil producers front-and-centre for many analysts and investors.

Worries have been heightened after %BritishPetroleum (NYSE: $BP ), the first oil major to report Q1 2025 earnings, announced a big drop in its profit and results that missed Wall Street targets.

BP also cut its quarterly dividend per ordinary share to $0.08 U.S. from $0.47 U.S. previously.

Many investors buy the stocks of oil and natural gas producers for their hefty dividend payments that often yield more than 5%.

Oil and gas companies are also known for undertaking aggressive stock buybacks.