Exxon Mobil Reports Strong Q2 Earnings Driven by Record Production

Exxon Mobil reported its second-highest earnings for the second quarter in the past decade on Friday, bolstered by record production levels in Guyana and the Permian Basin. The company’s shares saw a slight increase in morning trading.

Exxon CEO Darren Woods highlighted the achievement, stating, “The oil production we achieved in the second quarter is the highest level since the merger of Exxon and Mobil in 1999.”

The company’s second-quarter results exceeded Wall Street expectations. According to analysts surveyed by LSEG, Exxon’s earnings per share (EPS) were $2.14, surpassing the anticipated $2.01. Revenue reached $93.06 billion, exceeding the forecasted $90.99 billion. Net income for the quarter was $9.2 billion, or $2.14 per share, marking a 17% increase from the previous year’s $7.9 billion, or $1.94 per share. The acquisition of Pioneer Natural Resources, completed in May, contributed $500 million to the earnings.

Revenue increased from $82.91 billion in the prior year, surpassing estimates. For the year to date, Exxon has reported profits of $17.5 billion, reflecting a 9% decline from $19.3 billion in the same period of 2023, attributed to lower refining margins and natural gas prices.

Production rose by 15%, or 574,000 barrels per day, reaching 4.4 million bpd, driven by record outputs in Guyana and the Permian Basin. Capital and exploration expenditures for the quarter amounted to $7 billion, including $700 million related to the Pioneer acquisition, bringing total spending for the year to nearly $13 billion. Exxon projects $28 billion in capital expenditures for the year.

Shareholder returns totaled $9.5 billion, with $4.3 billion in dividends and $5.2 billion in share buybacks. Exxon’s stock has appreciated nearly 17% since the beginning of 2024.