Exxon Mobil has recently reported its second-highest results for the second quarter in the past decade. The company attributes this success to achieving record production in Guyana and the Permian Basin. CEO Darren Woods mentioned that it is the highest level of oil production since Exxon and Mobil merged in 1999.
During the second quarter, Exxon exceeded Wall Street expectations. The company reported earnings per share of $2.14, compared to the expected $2.01. Moreover, revenue reached $93.06 billion, surpassing the anticipated $90.99 billion. The net income of $9.2 billion was a significant 17% increase from the previous year.
The acquisition of Pioneer Natural, which was finalized in May, contributed $500 million to Exxon’s earnings. This acquisition played a crucial role in boosting the company’s financial performance. The total revenue rose from $82.91 billion to $93.06 billion, displaying substantial growth.
Despite the overall positive results, Exxon faced challenges in refining margins and natural gas prices. As a result, the company experienced a 9% decline in profits, amounting to $17.5 billion year to date. However, the strong performance in production helped offset these challenges to some extent.
Exxon witnessed a 15% growth in production, equivalent to 574,000 barrels per day, reaching 4.4 million bpd from the first quarter. This increase was primarily driven by the record-breaking production levels in Guyana and the Permian region. The company’s capital and exploration expenditures amounted to $7 billion in the quarter, with additional spending related to the Pioneer deal.
Looking ahead, Exxon expects to allocate $28 billion in capital spending for the year, demonstrating its commitment to further growth and development. Shareholder returns were substantial, totaling $9.5 billion, including dividends and share buybacks. Exxon Mobil’s shares have experienced a noteworthy increase of nearly 17% since the beginning of 2024, showcasing investor confidence in the company’s future prospects.
Exxon Mobil’s remarkable second quarter results underscore its strong operational performance and strategic investments. Despite facing challenges in certain sectors, the company’s focus on production growth and financial discipline has yielded positive outcomes. With a solid outlook for the future and a commitment to shareholder value, Exxon Mobil remains a key player in the energy industry.