Exxon Mobil Corp. (NYSE:XOM) stock edged lower in Friday’s premarket session after the oil major reported mixed second-quarter results, with revenue topping Wall Street estimates.
Adjusted earnings increased to $14.7 billion, or $3.52 per share, from $8.8 billion, or $2.09 per share, in the first quarter of 2026, but missed analysts’ estimate of $3.60 per share.
Total revenue and other income increased to $116.0 billion from $81.51 billion a year earlier, surpassing the analyst consensus estimate of $97.81 billion.
The earnings come as elevated crude prices, fueled by the Iran conflict, boosted profits across the oil sector. According to CNBC, both Chevron Corp. (NYSE:CVX) and Exxon Mobil benefited from the rally.
Bloomberg reported that refinery maintenance weighed on Exxon Mobil’s results, preventing the company from fully capturing stronger fuel margins even as oil prices surged amid the ongoing U.S.-Iran conflict.
Exxon Mobil Upstream Production Hits Two-Decade High
Upstream adjusted earnings increased to $9.2 billion from $6.3 billion in the prior quarter. Net production averaged 4.5 million oil-equivalent barrels per day, driven by record Permian output of more than 1.8 million oil-equivalent barrels per day and the absence of operational disruptions in Kazakhstan. Those gains were partially offset by disruptions in the Middle East.
Exxon Mobil said it achieved its highest upstream production level in more than 20 years, excluding the impact of Middle East disruptions.
Energy Products reported adjusted earnings of $4.1 billion, up from $2.8 billion in the prior quarter, supported by strong U.S. Gulf Coast utilization and record diesel production.
Chemical Products generated adjusted earnings of $1.2 billion, compared with $110 million in the first quarter, benefiting from North American feedstock advantages and improved reliability.
Specialty Products earnings increased to $969 million from $651 million, supported by higher basestock margins and a strong response to Middle East supply disruptions.
Cash Flow, Balance Sheet And Shareholder Returns
Operating cash flow totaled $23.6 billion, while free cash flow reached $17.2 billion, with both metrics increasing year over year.
Exxon Mobil ended the quarter with $10.6 billion in cash. Net debt declined by more than $7 billion during the quarter, while net debt-to-capital improved to 11% and net debt-to-EBITDA stood at 0.3x. Capital expenditures totaled $6.79 billion.
The company declared a third-quarter dividend of $1.03 per share, payable on Sept. 10, 2026, to shareholders of record on Aug. 17, 2026.
Exxon Mobil returned $4.3 billion through dividends and $5.1 billion through share repurchases during the quarter.
The company said structural cost savings reached $16.3 billion since 2019, including $1.2 billion generated during the first half of 2026.
Outlook
Exxon Mobil expects production from its fifth floating production, storage and offloading vessel in Guyana to begin in the fourth quarter of 2026, adding 250,000 barrels per day of capacity.
The company expects Guyana upstream net entitlement production to decline by about 100,000 barrels per day in the third quarter of 2026.
It also said a full-quarter closure of the Strait of Hormuz would reduce Middle East production by about 750,000 oil-equivalent barrels per day in the third quarter compared with 2025.
Exxon Mobil expects lower scheduled maintenance across its Product Solutions segment in the third quarter.
The company reaffirmed its target of about $20 billion in structural cost savings by 2030. It also said it remains on track to deliver about $25 billion in earnings growth and $35 billion in cash flow growth between 2024 and 2030.
In its upstream business, Exxon Mobil continues to target unit earnings of more than $15 per barrel by 2030, driven by its portfolio of advantaged assets.
Exxon Mobil Price Action
XOM Price Action: Exxon Mobil Holdings shares were down 0.30% at $156.50 during premarket trading on Friday, according to Benzinga Pro data.
Photo via Shutterstock
Read Also: Chevron, ExxonMobil Earnings Preview: Higher Oil Prices Have Analysts Predicting Best Results in 15 Quarters
Comments