Exxon Mobil Corp (NYSE: 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.
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."
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.