Exxon beats profit estimates with higher production despite weak oil prices
By Sheila Dang
HOUSTON (Reuters) -Exxon Mobil beat Wall Street estimates for second-quarter profit on Friday as higher oil and gas output and low production costs offset the impact of lower crude prices.
The biggest U.S. oil producer made clear that it is ready to take advantage of lower oil prices and make acquisitions, but only if it is confident that it can create additional value.
The energy sector has struggled with price volatility as the OPEC+ group increased its production, pushing global benchmark Brent crude prices down 11% in the quarter.
Global tariffs levied by U.S. President Donald Trump added to price weakness because they raised the prospect of a weakening global economy with knock-on effects for oil demand.
Exxon's oil and gas production was the highest for any second quarter since the merger of Exxon and Mobil formed the company more than 25 years ago, Exxon Mobil said.
"The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments," Exxon CEO Darren Woods said in a statement.
Adjusted earnings during the second quarter were $7.1 billion, or $1.64 per share, surpassing consensus analyst estimates of $1.56 per share, data compiled by LSEG showed.
Shares of Exxon declined 1.8% in morning trading.
Exxon paid $4.3 billion in dividends and repurchased $5 billion worth of shares during the quarter. The buyback figure puts the company on track to meet its annual share repurchase goal of $20 billion.
The company's main production areas include the Permian basin, the largest U.S. oilfield, as well as the prolific Stabroek Block off the coast of Guyana.
The low cost of production in those fields allows them to stay profitable even during times of weaker oil prices, Exxon has said previously.
Global production totaled 4.6 million barrels of oil equivalent per day (boepd) during the quarter, up from 4.5 million boepd in the previous three months.
The start-up of Yellowtail, a fourth floating production, storage and offloading facility in Guyana, is anticipated next week, the company said.
ON THE HUNT
In a press briefing, Woods said he was keeping a high bar for potential acquisitions, searching for targets that have a similar culture to Exxon and where leaders from both companies can learn from one another.
"We're not interested in buying volume," he said. "We're very focused on creating value."
The Permian basin is one area of potential, given Exxon's technological work to increase oil recovery in that field, Woods said during a conference call with analysts.
Content Original Link:
" target="_blank">
