Exxon Mobil achieved better-than-expected earnings during the second quarter because of its strong production levels combined with minimal operational expenses that reduced the impact of declining crude prices. The U.S. oil company indicated it would consider acquisitions to use capital effectively during the current weak commodity market.
The company achieved $7.1 billion in adjusted profit which translated to $1.64 per share and surpassed market predictions of $1.56. The company achieved its highest production levels in the second quarter since the Exxon-Mobil merger through increased output from the Permian Basin and Stabroek Block in Guyana.
CEO Darren Woods stated that Exxon’s strategic plan continues to produce successful results despite market volatility. According to him the company stands ready to expand its operations and boost shareholder value regardless of market conditions.
Exxon’s low-cost operations allowed the company to maintain its margins despite Brent crude prices dropping by 11% because of increased OPEC+ output. The company distributed $9.3 billion to shareholders during the quarter through dividend payments of $4.3 billion and stock buybacks of $5 billion to stay on course toward its $20 billion annual repurchase target.
The increasing trade tariffs from Trump have created uncertainty about worldwide demand which leads to downward pressure on oil prices. Exxon maintains its ability to choose strategic deals that will create long-term value for the company.
The market-wide decline caused Exxon’s stock price to decrease by 1.8% during the morning hours. The strong earnings performance of Exxon indicates its ability to withstand difficult external market conditions according to analysts.
