ExxonMobil Surpasses Expectations with Highest Q2 Production in 25 Years, Strengthens Business Outlook

ExxonMobil reported Q2 earnings of $1.64 per share, beating the Zacks consensus estimate of $1.49. Total quarterly revenues of $81.5 billion missed the consensus estimate of $82.8 billion. The company's production in the Permian and offshore Guyana drove its strongest Q2 production in 25 years. ExxonMobil's acquisition of Pioneer Natural Resources has been revised upward to more than $3 billion in annual synergies. The company expects to produce 2.3 MMBoE/D by the end of the decade, up from the current 1.6 MMBoE/D.

ExxonMobil Corporation (XOM) reported second-quarter 2025 earnings per share of $1.64, surpassing the Zacks Consensus Estimate of $1.49. Total quarterly revenues of $81.5 billion fell short of the Zacks Consensus Estimate of $82.8 billion. The company's production in the Permian and offshore Guyana drove its strongest Q2 production in 25 years. The acquisition of Pioneer Natural Resources has been revised upward to more than $3 billion in annual synergies. ExxonMobil expects to produce 2.3 MMBoe/D by the end of the decade, up from the current 1.6 MMBoe/D.

The company's upstream segment reported earnings of $5.40 billion, down from $7.1 billion in the year-ago quarter, primarily due to lower crude oil and natural gas prices. Operations in the United States recorded a profit of $1.21 billion, lower than $2.43 billion in the June-end quarter of 2024. Non-U.S. operations reported a profit of $4.19 billion, compared to $4.64 billion in the year-ago quarter. ExxonMobil's production averaged 4,630 thousand barrels of oil equivalent per day (MBoe/d), up from 4,358 MBoe/d a year ago.

The company's energy products segment recorded a profit of $1,366 million, up from $946 million a year ago. The increase was driven by stronger industry refining margins resulting from higher seasonal demand and increased volumes, partially offset by unfavorable foreign exchange impacts. The chemical products segment reported a profit of $293 million, down from $779 million in the year-ago quarter, impacted by compressed margins and elevated project-specific expenses tied to the China Chemical Complex.

ExxonMobil generated a cash flow of $11.55 billion from operations and asset divestments, with capital and exploration spending amounting to $6.33 billion. Total cash and cash equivalents were $14.35 billion, and long-term debt totaled $33.57 billion. The company expects a cash capital expenditure of $27-$29 billion for 2025, consistent with previous guidance.

ExxonMobil carries a Zacks Rank #3 (Hold). Investors interested in the energy sector may look at better-ranked stocks like Delek Logistics Partners (DKL), HighPeak Energy (HPK), and Vermilion Energy Inc. (VET), each currently carrying a Zacks Rank #2 (Buy).

References:
[1] https://finance.yahoo.com/news/exxonmobil-q2-earnings-surpass-estimates-162900242.html
[2] https://oilprice.com/Energy/Energy-General/Energy-Sector-Drags-as-Oil-Prices-Weigh-on-Profits.html