ExxonMobil reports stronger-than-expected second quarter
By Josh White
Date: Friday 01 Aug 2025
(Sharecast News) - ExxonMobil posted stronger-than-expected second-quarter earnings on Friday, buoyed by record oil and gas production despite falling crude prices and weaker refining margins.
The US energy behemoth reported net income of $7.1bn, or $1.64 per share, surpassing Wall Street forecasts of $1.56 per share, according to LSEG data.
Its upstream output reached its highest level for any second quarter since the 1999 Exxon-Mobil merger, supported by low-cost production growth in the Permian Basin and offshore Guyana.
That performance helped offset headwinds from a global decline in crude prices, which fell 11% during the quarter as OPEC+ ramped up supply and concerns grew over US trade tariffs and broader economic softness.
Exxon returned $9.2bn to shareholders during the quarter through $4.3bn in dividends and $5bn in share repurchases, keeping it on track to meet its $20bn annual buyback target.
Since acquiring Pioneer Natural Resources in May last year, the company had repurchased around 40% of the shares issued for the transaction.
"Once again, the second quarter proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments," said chief executive officer Darren Woods.
He added that Exxon achieved "its best quarter yet for high-value product sales volumes in Product Solutions".
Cash flow from operating activities was $11.5bn for the quarter, while free cash flow stood at $5.4bn.
Year-to-date, the company generated $24.5bn in operating cash flow and distributed $18.4bn to shareholders.
Capital spending reached $6.3bn in the quarter, bringing the first-half total to $12.3bn.
Exxon said it expected to invest between $27bn and $29bn for the full year.
Its cash balance stood at $15.7bn at the end of June, with a debt-to-capital ratio of 13%.
Exxon said it had started up six of 10 major projects planned for 2025, including operations in Singapore, Fawley, and Canada.
It said the full set of projects was expected to add more than $3bn in annual earnings by 2026 under current price conditions.
The quarter was also marked by a legal setback for Exxon in its dispute over Hess's 30% stake in the Stabroek Block.
Exxon had argued it held a pre-emptive right to acquire the stake ahead of Chevron's takeover, but lost the arbitration.
Woods said that although third-party legal reviews supported Exxon's interpretation, the company accepted the ruling and would "strengthen future contracts as needed".
Despite ongoing market volatility and geopolitical uncertainty, Exxon said it remained confident in the resilience of its portfolio and the trajectory of its structural cost savings, which had totalled $13.5bn since 2019.
The company reaffirmed its target of $18bn in cumulative savings by the end of the decade.
At 0700 EDT (1200 BST), shares in Exxon Mobil Corporation were up 0.76% in premarket trading in New York, at $112.58.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN