ExxonMobil Corp. estimated second-quarter 2022 earnings of $17.9 billion, compared with $5.5 billion in first-quarter 2022. Excluding identified items, earnings of $17.6 billion increased $8.7 billion from the prior quarter, driven by a tight supply-demand balance for oil, natural gas, and refined products, which have increased both natural gas realizations and refining margins well above the 10-year range, the company said.
Second-quarter results also included a favorable identified item of nearly $300 million associated with the sale of Barnett shale upstream assets. Capital and exploration expenditures were $4.6 billion in the second quarter and $9.5 billion for first-half 2022.
Upstream earnings in second-quarter 2022 were $11.4 billion compared to $4.5 billion in the first quarter. Excluding identified items, earnings were $11.1 billion, an increase of $3.3 billion from the previous quarter. Crude realizations improved 15% and gas realizations increased 23% compared to the first quarter driven by tight supply. Higher production from growth projects and recovery from first quarter weather-related downtime in Canada were partly offset by price entitlement effects and increased seasonal scheduled maintenance.
Oil-equivalent production in the second quarter was 3.7 million b/d. Excluding entitlement effects, divestments, and government mandates, including the impact of curtailed production in Russia, oil-equivalent production increased 4% versus the first quarter. Liquids volumes increased nearly 35,000 b/d and natural gas volumes grew by more than 150 MMcfd.
The Permian basin continued to improve efficiency and grow volumes, with average production during the quarter of more than 550,000 boe/d. The company is expecting to achieve a 25% production increase this year versus full-year 2021 and to eliminate routine flaring in the Permian basin by yearend.
Offshore Guyana production capacity increased to more than 340,000 boe/d with Liza Phase 2 production start-up earlier this year and Liza Phase 1 producing above design capacity. In addition, two new discoveries were announced (OGJ Online, July 26, 2022). The company also reached an agreement to supply the country of Guyana with natural gas to significantly reduce domestic energy costs and provide opportunities for industrial growth.
During the quarter, ExxonMobil and QatarEnergy signed an agreement to further develop Qatar's North Field East project, which will expand Qatar's annual LNG capacity with over 30 million tonnes/year (tpy) by 2026 (OGJ Online, June 21, 2022).
The Coral South Floating LNG project offshore Mozambique initiated flow of gas in June and is on track to deliver the first LNG cargo in second-half 2022.
ExxonMobil’s second-quarter 2022 earnings for energy products totaled $5.3 billion compared to a loss of $200 million in the first quarter. Strong refinery utilization in the quarter captured improved industry margins. Higher sales volumes were more than offset by unfavorable mix impacts and higher planned seasonal expenses. In addition, earnings benefited from more moderate commodity price increases which resulted in favorable unsettled derivative mark-to-market impacts, and the expected reversal of price/timing impacts from the first quarter.
ExxonMobil’s refining throughput in first-half 2022 was up 180,000 b/d versus the first 6 months of 2021 to meet recovering product demand.
The Beaumont refinery expansion remains on pace to add an incremental 250,000 b/d of capacity in first-quarter 2023, which would increase the company's US Gulf Coast refining capacity by about 17%.
Chemical products second-quarter 2022 earnings were $1.1 billion compared to $1.4 billion in the first quarter. Reliable operations and cost discipline drove strong earnings despite margins being impacted by higher ethane feed costs in North America, a stronger US dollar, higher planned seasonal expenses, and lower volumes driven by China lockdown demand impacts and logistics constraints.