ExxonMobil reports 2Q earnings of $3.1 billion

ExxonMobil Corp. reported estimated second-quarter earnings of $3.1 billion compared with $4 billion in second-quarter 2018. Earnings included a favorable identified item of $500 million, reflecting the impact of a tax rate change in Alberta.

Capital and exploration expenditures were $8.1 billion, up 22% from the prior year’s $6.6 billion, reflecting investments in the Permian basin. Net cash flow from operations was $5.9 billion.

Earnings for the first half of the year were $5.5 billion, down from the $8.6 billion reported for the same period in 2018. Capital expenditures for the year’s first half were $15 billion.

Production was 3.9 million boe/d, up 7% from the second quarter of 2018. Liquids production increased 8% driven by Permian basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Permian unconventional development continued with production up over 20% from the first quarter and up nearly 90% from the second quarter of last year. Natural gas volumes increased 5%, excluding entitlement effects and divestments.