Uche Cecil Izuora
ExxonMobil, has reported second-quarter 2026 earnings of $14.5 billion, up from $4.18 billion in the first quarter.
The increase was due to rising oil prices, record Permian basin production, the absence of operational disruptions in Kazakhstan, and a sharp turnaround in refining results offset the impact of Middle East disruptions.
The operator’s second quarter showcased significant growth in upstream and downstream segments, with record Permian production and improved refining results.
Second-quarter results included $2.64 billion in unfavorable identified items: $1.08 billion of impairments and $1.56 billion of other items, partly offset by $2.48 billion in favorable estimated timing effects. Adjusted earnings, which exclude identified items and estimated timing effects, were $14.68 billion for the quarter, compared with $8.77 billion in the first quarter.
For the first 6 months, earnings totaled $18.71 billion, up from $14.80 billion a year earlier. Adjusted earnings for the period were $23.45 billion vs. $14.56 billion in first-half 2025.
Cash flow from operating activities was $23.6 billion in the quarter and free cash flow was $17.2 billion. Shareholder distributions totaled $9.4 billion, comprising $4.3 billion in dividends and $5.1 billion in share repurchases.
“The second quarter was shaped by disruption, but defined by execution,” said Darren Woods, chairman and chief executive officer. “As conditions changed, we moved products where they were needed, optimized assets, and supported customers, leveraging our global integrated portfolio.”
Upstream earnings were $7.93 billion, up from $5.74 billion in the first quarter. Adjusted upstream earnings were $9.19 billion vs. $6.27 billion, which the company attributed to record Permian basin production of more than 1.8 MMboe/d and the absence of the operational disruptions that affected Kazakhstan in the first quarter, partly offset by Middle East disruptions. Permian output is consistent with a planned 9 per cent annual compound growth rate through 2030, ExxonMobil said.
Companywide production averaged 4.51 MMboe/d in the quarter, down from 4.59 MMboe/d in the first quarter.
First-half production averaged 4.55 MMboe/d, compared with 4.59 MMboe/d in the year-earlier period.
For the first half, ExxonMobil said strong reliability lifted upstream volumes excluding Middle East production in all periods to their highest in more than two decades, with higher depreciation a partial offset to earnings.
The fifth floating production, storage, and offloading (FPSO) vessel destined for Guyana set sail, with startup on plan for fourth-quarter 2026. The unit will add 250,000 b/d of capacity.
Energy Products adjusted earnings rose to $4.10 billion from $2.80 billion, with the company citing strong US Gulf Coast utilization and record second-quarter diesel production, partly offset by scheduled maintenance.
On a GAAP basis the segment earned $5.47 billion against a $1.26-billion first-quarter loss, a swing driven largely by timing effects, which were a positive $2.55 billion after a negative $3.36 billion in the first quarter. Segment sales were 5.70 million b/d, up from 5.63 million b/d.
Chemical Products earnings rose to $1.13 billion from $110 million, with adjusted earnings of $1.21 billion, which ExxonMobil attributed to North American feed advantage and reliability that enabled margin capture. Segment sales fell to 4.47 million tonnes from 5.36 million tonnes.
Cash capital expenditures totaled $6.79 billion for the quarter and $12.97 billion for the first half, vs. $12.54 billion in first-half 2025. Upstream accounted for $10.66 billion of the year-to-date total. ExxonMobil said its planned 2026 investment is 20% higher than that of its nearest international oil company peer.
Cumulative structural cost savings reached $16.3 billion relative to 2019, including an additional $1.2 billion in the first 6 months of 2026.
ExxonMobil reached a final investment decision for a 120,000-tonne/year Proxxima blending expansion in Louisiana.