Exxon Mobil Corp (NYSE:XOM, ETR:XONA) topped Wall Street estimates for second-quarter profit on Friday, as record production from the Permian Basin and higher refining margins offset lower energy prices.
The US oil giant reported adjusted earnings of $1.64 per share, surpassing analysts’ average estimate of $1.56, according to LSEG data.
Revenue rose to $81.51 billion, also ahead of expectations.
Total production rose to 4.63 million barrels of oil equivalent per day (boepd), the highest second-quarter output since Exxon’s 1999 merger with Mobil, driven by record volumes of 1.6 million boepd from the Permian and ongoing growth in Guyana.
“Our cost structure, scale, and advantaged portfolio continue to differentiate us,” CEO Darren Woods said in a statement. “We’re delivering industry-leading results and building long-term earnings power.”
Despite operational strength, net income fell 36% from a year earlier to $7.08 billion, reflecting lower commodity price realizations.
Refinery throughput climbed to 3.94 million barrels per day, benefiting from seasonal demand and contributing to a 65% sequential rise in earnings from the company’s Energy Products segment, which totaled $1.37 billion. Exxon also noted progress at its Strathcona Renewable Diesel facility and the Fawley hydrofiner in the UK.
Chemical Products earnings held steady at $293 million, as ramp-up at the China complex lifted volumes but margins remained soft. Specialty Products earnings increased 19% quarter-over-quarter to $780 million, supported by record volumes and the startup of the Singapore Resid Upgrade project.
Operating cash flow for the quarter came in at $11.5 billion, with free cash flow of $5.4 billion. Capital expenditures totaled $6.3 billion, keeping the company on track with its full-year capex guidance of $27 billion to $29 billion.
Exxon said it had started six of 10 major projects planned for the year and has achieved $13.5 billion in structural cost savings since 2019, more than any other international oil company. Its net debt ratio stood at 8% at the end of the quarter.
Shares of Exxon opened around 0.9% lower on Friday morning.