Exxon Mobil Posts Mixed Q2 Results On Lower Natural Gas Realizations & Industry Refining Margins

Exxon Mobil Corp XOM reported Q2 2023 revenues of $82.91 billion, beating the consensus of $80.19 billion. 

The company reported Q2 adjusted earnings of $7.9 billion, lower than $17.6 billion a year ago, owing to lower natural gas realizations and industry refining margins.

Related: Exxon Flags Lower Quarterly Profit Amid Low Natural Gas Prices, Refining Margins

Upstream adjusted earnings fell to $4.6 billion from $11.1 billion a year ago, due to lower crude and natural gas realizations, with net production of 3.6 million oil-equivalent barrels per day.

Energy Products earnings reached $2.3 billion, declining from $5.3 billion a year ago, on lower industry refining margins.

Chemical Products earnings were $828 million, and Specialty Products earnings stood at $671 million in Q2.

Adjusted EPS of $1.94 missed the consensus estimate of $2.01. 

"Earnings totaled more than $19 billion during the first half of the year, and we are on track to structurally reduce costs by $9 billion at year end compared to 2019. Production is up 20% year-over-year in Guyana and the Permian, and we are playing a leading role in the industry's energy transition with an agreement to acquire Denbury and with three world-scale CO2 offtake agreements," said Darren Woods, chairman, and chief executive officer.

This reflects the significant opportunity to profitably grow our Low Carbon Solutions business by creating a compelling customer decarbonization proposition with the potential to reduce Gulf Coast industrial emissions by 100 million metric tons per year."

Related: ExxonMobil Buys Denbury In $4.9B Stock Deal, Boosts Low Carbon Solutions Business

Capital and exploration expenditures stood at $6.2 billion in the second quarter. 

Cash flow from operations reached $9.4 billion, and free cash flow was $5.0 billion in Q2.

Outlook: The company continues to expect 2023 capital expenditure of $23 billion-$25 billion and believes it is on track to achieving structural cost savings of $9 billion by the end of 2023 relative to 2019. 

Share repurchases: XOM bought back shares worth $4.3 billion in the quarter.  

Dividend: XOM declared a dividend per share of $0.91 for Q3, payable on September 11, 2023, to shareholders of record as on August 16, 2023.

Price Action: XOM shares are trading lower by 0.16% at $105.25 premarket on last check Friday.