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Exxon Mobil (NYSE:XOM) +0.7% pre-market Friday after posting better than expected Q2 adjusted earnings and revenues, as lower crude prices were outweighed by the highest oil and gas production for any Q2 since the company was formed by the merger of Exxon and Mobil more than 25 years ago.
Exxon (NYSE:XOM) earned $7.08B, or $1.64/share, for Q2, compared to $7.71B, or $1.76/share, in Q1, while revenues fell 1.9% Q/Q to $81.5B.
Global crude prices were nearly $20/bbl lower during Q2 from the year-earlier quarter, forcing several U.S. producers to slow output growth, but Exxon’s (NYSE:XOM) production ticked up.
Exxon (XOM) said free cash flow for the quarter jumped 9.2% Y/Y to $5.39B, well above the $4.05B analyst consensus estimate compiled by FactSet.
Q2 earnings by segment: Upstream earnings fell to $5.4B from $6.8B in Q1, as lower crude and natural gas realizations were partially offset by volume growth from advantaged assets, which included record Permian production of 1.6M boe/day, along with structural cost savings; Energy Products rose to $1.4B from $860M in Q1, driven by stronger industry refining margins from higher seasonal demand and higher volumes from lower scheduled maintenance; Chemical Products edged higher to $293M from $273M in Q1, as higher sales volumes driven by the China Chemical Complex ramp-up offset weaker margins from lower North America feed advantage; and Specialty Products rose to $780M from $655M in Q1, citing stronger basestock margins and record high-value product sales volumes.
Q2 worldwide net production increased to 4.63M boe/day from 4.55M boe/day in Q1, as crude oil output climbed to 3.26M bbl/day from 3.14M bbl/day and natural gas fell to 8.22B cf/day from 8.47B cf/day; Q2 worldwide refinery throughput rose to 3.93M bbl/day from 3.81M bbl/day in the previous quarter.
Exxon (XOM) said the start-up of Yellowtail, a fourth floating production, storage and offloading facility in Guyana, is expected next week.
The company said it achieved $1.4B in YTD structural cost savings, and has delivered $13.5B of cumulative structural cost savings since 2019; it expects to deliver $18B of cumulative savings through year-end 2030 from 2019.