Exxon Earns $7.1 Billion in Q2 as Lower Oil Prices Bite
August 03, 2025
Exxon Mobil Corporation reported second-quarter 2025 earnings of $7.1 billion, or $1.64 per diluted share, down 8% from the prior quarter and 15% lower year-to-date versus the first half of 2024.
The decline was driven by weaker crude and natural gas prices, softer refining margins, and higher depreciation, but partially offset by record upstream production, structural cost savings, and ramp-up of major projects.
The company maintained strong cash flow, generating $11.5 billion from operations and $5.4 billion in free cash flow. Shareholder distributions totaled $9.2 billion for the quarter, including $4.3 billion in dividends and $5 billion in share repurchases, keeping pace with its $20 billion annual buyback target.
Record Output and Project Momentum
Upstream production reached 4.6 million barrels of oil equivalent per day—the highest second-quarter level since the Exxon-Mobil merger in 1999—fueled by the Pioneer Natural Resources acquisition and growth in Guyana and the Permian.
Exxon has already repurchased 40% of the shares issued for the Pioneer deal, which closed in May 2024.
CEO Darren Woods highlighted Exxon’s long-term strategy: “We started up six of ten major projects planned this year. Together, they’re expected to add over $3 billion to annual earnings by 2026.”
Start-ups this quarter included the Singapore Resid Upgrade, the Fawley Hydrofiner in the UK, and the Strathcona Renewable Diesel facility—now the largest of its kind in Canada.
Segment Performance
- Upstream earnings fell to $5.4 billion from $6.8 billion in Q1, as weaker price realizations offset volume growth. Year-to-date upstream profit stands at $12.2 billion, down slightly from 2024.
- Energy Products earnings climbed to $1.4 billion, boosted by improved seasonal refining margins and reduced downtime. Sales averaged 5.4 million barrels per day.
- Chemical Products saw stable quarterly earnings of $293 million, but year-to-date profit dropped to $566 million due to margin compression and China ramp-up costs.
- Specialty Products delivered $780 million in Q2 earnings, up from Q1 thanks to record high-value product sales and stronger basestock margins.
Capital Discipline and Shareholder Focus
Despite earnings pressure, ExxonMobil stayed disciplined on spending. Cash capital expenditures reached $6.3 billion in Q2, bringing the year-to-date total to $12.3 billion—on track with full-year guidance of $27–29 billion. The company also declared a Q3 dividend of $0.99 per share, payable September 10.
ExxonMobil continues to lead in structural cost reductions, reporting $1.4 billion in new savings in H1 and a cumulative total of $13.5 billion since 2019—outpacing all other major international oil companies (IOCs).
The company maintains a fortress balance sheet, with a net-debt-to-capital ratio of just 8% and $15.7 billion in cash.
Outlook
While weaker commodity prices and refining margins weighed on profitability, ExxonMobil’s operational momentum, cost efficiency, and cash generation underscore its resilience.
With four more major projects set to start up in 2025 and a long-term savings plan extending through 2030, the company remains positioned for durable value creation—even in a lower-price environment.
Oilprice.com
