Key facts
- Exxon Mobil anticipates its second-quarter upstream earnings will be between $3.5 billion and $3.9 billion.
- The company's adjusted earnings per share exceeded analyst estimates at $1.64.
- Total production reached 4.63 million barrels of oil equivalent per day, a second-quarter record.
- Net income decreased by 36% year-over-year to $7.08 billion.
- Refining segment earnings increased significantly due to higher margins and seasonal demand.
Exxon Mobil indicated in a regulatory filing that its second-quarter upstream earnings are expected to range between $3.5 billion and $3.9 billion, influenced by changes in oil prices. This projection follows the company's first-quarter upstream earnings of $5.7 billion and a net profit of $7.1 billion in the second quarter of the previous year.
In its second-quarter results, Exxon Mobil surpassed Wall Street's profit estimates, reporting adjusted earnings of $1.64 per share against an average estimate of $1.56. Revenue also exceeded expectations, reaching $81.51 billion. The company achieved record production from the Permian Basin and saw higher refining margins, which helped offset lower energy prices. Total production rose to 4.63 million barrels of oil equivalent per day, the highest for a second quarter since the 1999 merger with Mobil, with 1.6 million boepd coming from the Permian and ongoing growth in Guyana.
Despite strong operational performance, net income fell 36% from the prior year to $7.08 billion, attributed to lower commodity price realizations. Refinery throughput increased to 3.94 million barrels per day, benefiting from seasonal demand and contributing to a 65% sequential rise in earnings from the Energy Products segment, which totaled $1.37 billion. Earnings from Chemical Products remained steady at $293 million, while Specialty Products earnings grew 19% quarter-over-quarter to $780 million.
Exxon Mobil reported operating cash flow of $11.5 billion and free cash flow of $5.4 billion for the quarter. Capital expenditures were $6.3 billion, keeping the company on track with its full-year guidance. The company has achieved $13.5 billion in structural cost savings since 2019, and its net debt ratio was 8% at the quarter's end.