Exxon ( XOM) was downgraded Friday at Lehman Brothers, which says it expects the oil giant's red-hot performance to moderate this year.

Lehman cut Exxon to equal-weight from overweight, saying it doesn't expect the stock to repeat 2006's 39% surge. Lehman said it expects Exxon's oil and gas output expansion to slow to around 3% from last year's 6%. The firm sees better growth opportunities elsewhere in the oil patch.

The news comes as shares in the Irving, Texas, energy titan have stumbled 5% lower in early 2007.