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ExxonMobil second-quarter profit rises on Pioneer acquisition and surging production
The Texas oil and gas giant earned $9.24 billion, or $2.14 per share, for the second quarter of 2024. Photo via exxonmobil.com
ExxonMobil recorded one of its largest second-quarter profits in a decade on surging quarterly production from oil and gas fields in Guyana and the Permian basin in the U.S., as well its $60 billion acquisition of Pioneer Natural Resources.
The Texas oil and gas giant earned $9.24 billion, or $2.14 per share, for the three months ended June 30, topping last year's profit of $7.88 billion, or $1.94 per share.
The results topped Wall Street expectations, though Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts surveyed by Zacks Investment Research were expecting earnings of $2.04 per share.
“We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger," Chairman and CEO Darren Woods said in a prepared statement Friday.
The Pioneer deal contributed $500 million to earnings in the first two months after closing, Exxon said.
Revenue for the Spring, Texas, company totaled $93.06 billion, topping Wall Street's expectations for $90.38 billion.
Exxon's net production reached 4.4 million oil-equivalent barrels per day during the second quarter, an increase of 15% compared with the first three months of the year.
Oil prices are lower than they were at this point last year, and those high prices sent Exxon and other energy giants on a buying spree.
Exxon announced in July 2023 that it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered the business of capturing and storing carbon and stands to benefit from changes in U.S. climate policy.
Three months later it said it would spend $60 billion on shale operator Pioneer Natural Resources. That deal received clearance from the Federal Trade Commission in May.
In October Chevron said it would buy Hess Corp. for $53 billion, joining the acquisitions race.
Chevron Corp. also reported its second-quarter financial results on Friday, which fell far short of profit expectations.
In addition, the company said that it is moving its headquarters from San Ramon, California, to Houston, Texas. Chevron expects all corporate functions to transition to Houston over the next five years, with positions in support of its California operations remaining in San Ramon. Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson will move to Houston before the end of the year.
Chevron currently has about 7,000 employees in the Houston area and approximately 2,000 employees in San Ramon. The company runs crude oil fields, technical facilities, and two refineries and supplies more than 1,800 retail stations in California.
Its shares slipped 1.7% before the opening bell.
Shares of ExxonMobil Corp. fell slightly in premarket trading. Chevron shares fell 1.7%.