Exxon Mobil's Q2 2025: Contradictions Unveiled on Permian Production, Cost Guidance, and M&A Strategy

Permian production and technology upside, corporate cost guidance and savings, M&A strategy and focus, LNG contracting strategy and market oversupply, low-carbon business and CCS progress are the key contradictions discussed in Exxon Mobil's latest 2025Q2 earnings call.



Strong Performance in Upstream Operations:
- ExxonMobil achieved the highest second-quarter production since the merger of Exxon and Mobil more than 25 years ago, with more than half of their oil and natural gas production coming from high-return, advantaged assets.
- In Guyana, they have nearly 11 billion barrels of resource, with four developments online producing roughly 650,000 gross barrels per day.
- The success is attributed to strategic investments in high-value assets and technological advancements.

Permian Basin Growth and Technology Innovation:
- The company aims to grow Permian production from 1.6 million oil equivalent barrels per day to 2.3 million by 2030, with a focus on doubling recovery from the industry average of roughly 7%.
- They are deploying lightweight proppant, a patented material made from petroleum coke, which improves recovery by up to 20%.
- This growth is driven by the integration of technology and exceptional acreage, enhancing capital efficiency and recovery rates.

Significant Downstream Project Start-ups:
- ExxonMobil's 2025 project start-ups are expected to drive more than $3 billion of earnings in 2026 at constant prices and margin.
- These projects include the Singapore Resid Upgrade, Fawley Hydrofiner in the UK, and the Proxxima systems blending facility in Texas.
- The focus on high-value products and technologies is designed to offset lower-value products and improve margins.

Progress in Low Carbon Solutions:
- The company's first third-party carbon capture and storage project is now in operation, storing up to 2 million metric tons of CO2 per year.
- They have announced their seventh CCS customer contract, increasing third-party CO2 offtake to nearly 10 million metric tons per year.
- This progress is supported by ExxonMobil's large-scale CO2 transport and storage network, and strategic investments in carbon capture and storage technologies.