Adjusted second-quarter earnings of $3.52 a share came in 2 cents below analyst forecasts, with scheduled maintenance limiting fuel-making profits
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ExxonMobil $XOM reported second-quarter adjusted earnings of $3.52 per share, falling 2 cents short of the average analyst estimate, according to Bloomberg. Planned maintenance work at the company's refineries prevented ExxonMobil from fully benefiting from strong market prices for gasoline, diesel, and jet fuel during the period,.
Total adjusted earnings for the quarter reached $14.7 billion, up from $8.8 billion in the first quarter. On a GAAP basis, the company earned $14.5 billion, or $3.48 per share. Cash flow from operating activities was $23.6 billion, and free cash flow was $17.2 billion, the company said.
The company's fuel-making operations generated $4.1 billion, the strongest result in four years, yet that figure fell well short of the $5.37 billion Wall Street had projected, according to Bloomberg. The company said Energy Products earnings were boosted by strong U.S. Gulf Coast utilization and record diesel production but were "offset by scheduled maintenance impacts."
Upstream operations provided a stronger result. The company said it achieved its highest production in more than two decades, excluding volumes affected by Middle East disruptions, with output reaching 4.514 million oil-equivalent barrels per day. Permian Basin production set a record of more than 1.8 million oil-equivalent barrels per day, the company said. The company also noted that a fifth Guyana floating production vessel set sail, with startup planned for the fourth quarter of 2026.
ExxonMobil distributed $9.4 billion to shareholders in the quarter, including $4.3 billion in dividends and $5.1 billion in share repurchases. The company also declared a third-quarter dividend of $1.03 per share, payable September 10, 2026.
"The second quarter was shaped by disruption, but defined by execution," Chief Executive Officer Darren Woods said in a statement. Chief Financial Officer Neil Hansen described the oil industry as "a pretty low margin business" and said no individual company is large enough to influence prices.
The quarter follows a turbulent start to the year for the company. ExxonMobil's first-quarter net income fell to $4.2 billion, its lowest in five years, weighed down by $3.9 billion in unfavorable derivative timing effects and a $706 million loss tied to Middle East war disruptions. Those timing effects were expected to unwind in subsequent periods, which the second-quarter results reflect. The company's Middle East footprint accounts for roughly 20% of its total oil and gas output, and war-related disruptions had shaved 6% off first-quarter production relative to the preceding quarter.
ExxonMobil stock has risen less than 3% since the U.S.-Iran conflict began at the end of February.
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