Exxon Mobil reported one of its highest second-quarter profits in ten years due to strong production from its oil and gas assets in Guyana and the Permian basin, along with its $60 billion acquisition of Pioneer Natural Resources. The energy giant’s earnings reached $9.24 billion, or $2.14 per share, for the period ending June 30, compared to $7.88 billion, or $1.94 per share, a year earlier. Despite surpassing analysts’ expectations, Exxon does not adjust its results for one-time events like asset sales.
Chairman and CEO Darren Woods highlighted record quarterly production from its low-cost Permian and Guyana assets, marking the highest oil production since the Exxon and Mobil merger. In addition, the company achieved a 10% increase in high-value product sales compared to the previous year’s first half. Exxon’s revenue for the quarter totaled $93.06 billion, exceeding Wall Street’s forecast of $90.38 billion.
Last year, Exxon began seeking acquisitions amid a surge in oil prices. The company announced its $4.9 billion acquisition of Denbury Resources in July 2023, followed by the $60 billion purchase of Pioneer Natural Resources in October. The Federal Trade Commission sought further information from both companies about the proposed acquisition, a standard step in assessing potential anticompetitive effects under U.S. law. The deal received FTC clearance in May, although Scott Sheffield, the former CEO of Pioneer, was prohibited from joining the new company’s board.
Amid increased cash reserves in the energy sector, there has been significant consolidation. In October, Chevron disclosed its plan to acquire Hess Corp. for $53 billion. Before the opening bell on Friday, shares of Exxon Mobil Corp. rose more than 1% as a result of its robust quarterly performance.
