Exxon Mobil reported a better-than-expected second-quarter profit of $9.2 billion, driven by rising oil prices and increased production following its acquisition of shale oil firm Pioneer Natural Resources.
The company posted a $2.14 per share profit, surpassing analysts’ expectations, despite weaker refining earnings.
“I’d say vectors are all pointing up,” said Exxon CEO Darren Woods of the output gains.
“Oil demand continues to be at record levels. Last year was a record. We anticipate this year will be a record and then next year will be a record,” Woods added, countering BP’s forecast of peak oil demand in 2024.
The company’s net income increased to $9.24 billion from $7.88 billion a year ago, largely due to higher oil prices and asset sales gains. Exxon plans to repurchase $19 billion in shares this year, up from $17.4 billion in 2023.
Exxon raised its 2024 output target by 13% to 4.3 million barrels of oil equivalent per day (boepd), boosted by the Pioneer acquisition, which contributed 574,000 boepd.
The company’s Guyana operations also reported peak production of 663,000 boepd in May.
Capital spending rose to $7.03 billion, including $700 million on assets acquired from Pioneer. Exxon increased its annual capital expenditure guidance to $28 billion, up from the previously estimated $23-$25 billion.
The Golden Pass liquefied natural gas (LNG) project, in which Exxon holds a 30% stake, is delayed until late 2025 due to the lead contractor’s bankruptcy.
Exxon anticipates greater synergies from the Pioneer deal than initially expected, with updates to be disclosed in December.
The company’s cash flow from operations increased to $10.5 billion, providing ample funds for share buybacks and dividends.
