ExxonMobil delivers record second-quarter upstream production

ExxonMobil Corp. reported second-quarter 2025 earnings of $7.1 billion, down from $7.71 billion in first-quarter 2025 as lower oil prices and softer refining margins weighed on results. Despite the earnings dip, the company delivered strong operational performance, with record upstream production and continued returns to shareholders.

Second-quarter revenue came in at around $81.5 billion, supported by increased output from key growth areas including the Permian basin and Guyana. Total production reached nearly 4.6 MMboe/d, marking ExxonMobil’s highest second-quarter volume since the Exxon-Mobil merger in 1999 and "the best quarter yet for high-value product sales volumes in Product Solutions," said Darren Woods, ExxonMobil chairman and chief executive officer.  

“The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments,” Woods said. 

ExxonMobil generated $11.5 billion in cash flow from operating activities during the quarter, with free cash flow totaling $5.4 billion. The company returned $9.2 billion to shareholders, including $4.3 billion in dividends and $5.0 billion in share repurchases.

Year-to-date earnings stood at $14.8 billion, compared with $17.5 billion in first-half 2024. The decline reflects weaker crude prices, a decline in industry refining margins, higher depreciation costs and lower base volumes from strategic divestments.  

Cash capital expenditures were $6.3 billion in the second quarter, bringing year-to-date spending to $12.3 billion. This includes $12.2 billion of additions to property, plant, and equipment during first-half 2025. The company expects full-year cash capital expenditures of $27-29 billion, consistent with previous guidance.

Despite the macro headwinds, ExxonMobil made progress on strategic initiatives. The operator achieved start-up of Singapore Resid Upgrade, Fawley Hydrofiner, and Strathcona renewable diesel projects during the quarter. The company also has begun start-up operations for the first six of ten key projects this year and remains on track to start up the remaining four. Collectively, these projects are expected to improve ExxonMobil's earnings power by more than $3 billion in 2026 at constant prices and margins, the company said. 

The company achieved year-to-date structural cost savings of $1.4 billion. Since 2019, ExxonMobil has delivered $13.5 billion in structural cost savings, more than all other international oil companies (IOCs) combined.

Looking ahead, ExxonMobil sees upside from the ramp-up of its Yellowtail offshore project in Guyana and continued synergies from its expanded US shale portfolio. The company also remains open to further mergers and acquisitions, but only if they deliver clear shareholder value. CEO Woods reiterated ExxonMobil’s commitment to disciplined capital allocation, stating, “We’re not looking to buy volumes. We're interested in building value.”