Exxon Mobil’s second-quarter profit rises on Pioneer acquisition and rising production

By MICHELLE CHAPMAN

Exxon Mobil reported one of its biggest second-quarter profits in a decade, helped by record quarterly production from oil and gas fields in Guyana and the U.S. Permian Basin and the $60 billion acquisition of Pioneer Natural Resources.

The energy company earned $9.24 billion, or $2.14 per share, in the three months ended June 30. A year earlier, it earned $7.88 billion, or $1.94 per share.

The results beat Wall Street expectations, but Exxon does not adjust its results based on one-time items such as asset sales. Analysts surveyed by Zacks Investment Research had expected earnings of $2.04 per share.

“We achieved record quarterly production from our low-cost Permian and Guyana assets, with the highest oil production since the merger of Exxon and Mobil,” Chairman and CEO Darren Woods said in a prepared statement Friday. “We also achieved record sales of high-value products, up 10% compared to the first half of last year.”

The Spring, Texas-based company’s revenue totaled $93.06 billion in the period, topping Wall Street forecasts of $90.38 billion.

Exxon began looking for acquisition opportunities last year as oil prices rose sharply.

The company announced in July 2023 that it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered the carbon capture and storage business and plans to benefit from changes in U.S. climate policy.

In October, Exxon topped that deal by announcing it would buy shale operator Pioneer Natural Resources for $60 billion. Two months later, the Federal Trade Commission, which enforces federal antitrust laws, asked the companies for additional information about the proposed deal. The request is a step the agency takes in reviewing whether a merger could be anticompetitive under U.S. law. Pioneer disclosed the request in a filing in January. The deal won FTC approval in May, but former Pioneer Chief Executive Scott Sheffield was barred from joining the new company’s board.

Elevated cash levels for all major producers have led to massive consolidation in the energy sector. In October, Chevron announced it would buy Hess Corp. for $53 billion.

Exxon Mobil Corp. shares rose more than 1% in premarket trading on Friday.