Exxon Mobil Hits Record Production, CEO Reaffirms Hunt For Value-Driven Deals

Exxon Mobil Corporation (NYSE:XOM) announced on Friday its second-quarter 2025 earnings of $7.1 billion, or $1.64 per share, exceeding analyst estimates of $1.47. The company’s total revenues of $81.51 billion also surpassed the consensus forecast of $79.34 billion.

Operational performance was a key highlight, with the company achieving its highest second-quarter Upstream production since the Exxon-Mobil merger more than 25 years ago.

Total production reached 4.6 million oil-equivalent barrels per day, a 13% increase from the first half of 2024, driven largely by the Pioneer Natural Resources acquisition and record output from the Permian Basin.

Also Read: Chevron Achieves Record Production, Sees Future Growth After Hess Deal

The Upstream segment reported second-quarter earnings of $5.4 billion, a drop from the previous quarter, primarily due to weaker commodity prices. However, volume growth from advantaged assets, including the Permian Basin, helped to offset these pressures.

Energy Products posted second-quarter earnings of $1.4 billion, a significant increase from the first quarter. This increase was fueled by stronger refining margins and higher volumes.

Chemical Products earnings were $293 million, comparable to the first quarter, as higher sales volumes from the China Chemical Complex offset weaker margins.

Specialty Products’ earnings increased by $125 million from the first quarter, driven by stronger basestock margins and record sales volumes.

ExxonMobil generated $11.5 billion in cash flow from operations and a free cash flow of $5.4 billion for the quarter, ending the period with a cash balance of $15.7 billion.

This financial strength supported the distribution of $9.2 billion to shareholders, including $4.3 billion in dividends and $5.0 billion in share repurchases.

The company declared a third-quarter dividend of $0.99 per share, payable on Sept. 10, 2025, to shareholders of record as of Aug. 15, 2025. ExxonMobil’s structural cost savings initiatives continued to deliver, with $1.4 billion saved year-to-date.

The company has repurchased approximately 40% of the shares issued for the Pioneer Natural Resources acquisition and remains on track to complete its $20 billion share repurchase program this year.

The company is also moving forward with its strategic growth plan, commencing start-up operations on three key projects: the Singapore Resid Upgrade, the Fawley Hydrofiner in the United Kingdom, and the Strathcona Renewable Diesel project in Canada. These projects are part of a broader plan to add more than $3 billion in earnings power by 2026.

“The second quarter, once again, proved the value of our strategy and competitive advantages,” said Darren Woods, chairman and chief executive officer. “Our strong production and disciplined spending are delivering industry-leading value today and positioning us for long-term profitable growth.”

Exxon Mobil Corp. is looking for opportunities to acquire smaller rivals, Woods said, as reported by Bloomberg. A year after the $60 billion acquisition of Pioneer Natural Resources Co., Woods indicated that the Texas oil giant aims to acquire companies that create value through combining assets and expertise, rather than simply pursuing growth for size alone.

Price Action: At last check Friday, XOM shares were trading lower by 1.34% at $110.14.

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