Exxon Reports Earnings Drop Amid Strong Production Growth

IRVING, Texas – ExxonMobil reported its second-quarter earnings on Friday, revealing a significant decline from last year. However, the company still managed to beat Wall Street’s expectations. The earnings dip was softened by production growth in the Permian Basin and Guyana.

The oil giant’s net income fell 23% to $7.1 billion, or $1.64 per share, compared to last year’s $9.2 billion, or $2.14 per share. Despite the drop, the results exceeded analyst forecasts, according to a survey by LSEG.

Exxon’s production reached 4.6 million barrels per day, marking the highest second-quarter output since the merger of Exxon and Mobil over 25 years ago. Notably, production in the Permian exceeded 1.6 million bpd, setting a new record for that region.

Although production profits fell to $5.4 billion, down from about $7.1 billion last year due to lower oil prices, the company’s refining sector saw growth. It recorded earnings of $1.37 billion globally, a 44% increase over last year’s $946 million, driven by improved refining margins.

In terms of shareholder returns, Exxon paid out $9.2 billion, which included over $4 billion in dividends and $5 billion in share repurchases. The company projected it would purchase $20 billion in shares throughout the year.

Exxon has significantly cut costs, totaling $1.4 billion this year and $13.5 billion since 2019. The company aims to save an additional $4.5 billion by the end of 2030.

This is a breaking news story, and updates will follow as more information becomes available.