ExxonMobil reported its second highest results for the second quarter in the past decade, with record production in Guyana and the Permian Basin contributing to the success. The company’s shares rose about 2% before the market opened. CEO Darren Woods noted that the oil production levels in the second quarter were the highest since Exxon and Mobil merged in 1999. The reported earnings per share were $2.14, exceeding the expected $2.01, while revenue came in at $93.06 billion compared to the anticipated $90.99 billion.
The net income for Exxon was $9.2 billion, or $2.14 per share, which represented a 17% increase from the previous year’s profits. The acquisition of Pioneer Natural that closed in May added $500 million to Exxon’s earnings. Revenue also saw growth, reaching $93.06 billion compared to $82.91 billion in the same period last year. Despite a 9% decline in profits year-to-date, with $17.5 billion compared to $19.3 billion in 2023, lower refining margins and natural gas prices contributed to this decrease.
In terms of production, Exxon experienced a 15% increase, or 574,000 barrels per day, reaching 4.4 million bpd in the second quarter. This growth was primarily driven by record production levels in Guyana and the Permian Basin. Capital and exploration expenditures totaled $7 billion for the quarter, including $700 million related to the Pioneer acquisition that closed in May. Total spending for the year is expected to be around $28 billion, with nearly $13 billion already spent.
Exxon also reported significant shareholder returns, totaling $9.5 billion, which included $4.3 billion in dividends and $5.2 billion in share buybacks. The company’s strong financial performance has led to a 17% increase in its share price since the beginning of 2024. Analysts and investors have reacted positively to Exxon’s results, with the company demonstrating its ability to navigate challenging market conditions and capitalize on growth opportunities in key production areas like Guyana and the Permian Basin. Exxon’s strategic investments and focus on capital spending are expected to drive further growth and returns for shareholders in the future.
