Second-quarter 2025 earnings pressured by lower crude realizations

A group of 44 US-based oil and gas producers and refiners announced a total net income of $22.15 billion in second-quarter 2025, compared with earnings of $26.33 billion in second-quarter 2024. Total revenues were $303.41 billion for the quarter, down from $330.44 billion a year ago. The decrease in earnings was mainly attributed to lower crude oil prices.

In second-quarter 2025, Brent crude oil prices averaged $68.01/bbl, a decrease from $84.65/bbl in the same quarter the previous year and down from $75.81/bbl in first-quarter 2025. West Texas Intermediate (WTI) averaged $64.6/bbl in second-quarter 2025, compared with $81.71/bbl in second-quarter 2024 and $71.84/bbl in first-quarter 2025.

For second-quarter 2025, US crude oil production averaged 13.46 million b/d, compared to 13.23 million b/d a year earlier, according to data from the US Energy Information Administration (EIA). US natural gas liquids (NGL) production averaged 7.34 million b/d during the quarter, compared with 7.01 million b/d a year ago.

US commercial crude oil stock at the end of June was 426 million bbl, compared with 440 million bbl by the same quarter a year ago and a 5-year average of 458.2 million bbl. US oil product stock at the end of June was 811 million bbl, compared with 839 million bbl at the end of second-quarter 2024 and a 5-year average of 833.4 million bbl. US Strategic Petroleum Reserve (SPR) at the end of June 2025 was 403 million bbl, compared with 373 million bbl at the end of the same quarter a year ago and a 5-year average of 498.0 million bbl.

US refinery inputs were 16.93 million b/d in second-quarter 2025, compared with 16.96 million b/d for the same quarter a year ago and 15.93 million b/d for the previous quarter. Refinery utilization rate was 93.5% for the quarter, compared with 92.5% for the same quarter a year ago and 86.9% in first-quarter 2025.

According to Muse, Stancil & Co., refining cash margins in second-quarter 2025 averaged $17.78/bbl for Middle-West refiners, $12.10/bbl for Gulf Coast refiners, and $7.56/bbl for East Coast refiners. In the same quarter of the prior year, these refining margins were $16.63/bbl, $10.42/bbl, and $7.61/bbl, respectively.

Natural gas spot prices at Henry Hub averaged $3.19/MMbtu in second-quarter 2025, compared with $2.09/MMbtu for the same quarter a year ago. US marketed gas production averaged 117.6 bcfd in the quarter, up from 112.1 bcfd a year earlier.

Natural gas inventory ended the quarter at 3,004 bcf, compared with a 5-year average of 2,823.6 bcf. US LNG exports averaged 14.15 bcfd in second-quarter 2025, up by 2.86 bcfd (25.3%) from the previous year's second quarter.

A sample of 14 oil and gas producers and pipeline companies with headquarters in Canada recorded collective net income of $9.13 billion (Can.) in second-quarter 2025, compared with net income of $8.83 billion in the prior year’s quarter.

The WTI–WCS (Western Canadian Select) spread continued to narrow through mid-2025. The discount averaged $21.90/bbl in fourth-quarter 2023, tightening to $12.55/bbl in fourth-quarter 2024. By second-quarter 2025, the spread had contracted further to around $10/bbl. The tighter differential reflects improved egress for Canadian crude and stronger demand for heavy barrels.

US oil and gas producers

ExxonMobil’s second-quarter 2025 revenue came in at $81.5 billion, down from $93.1 billion in the year-ago period. Net income was $7.1 billion, compared with $9.2 billion a year earlier. Total production reached 4.6 MMboe/d, which the company described as its highest second-quarter production since the Exxon–Mobil merger, including record Permian basin production of 1.6 MMboe/d.

The operator highlighted start-ups at Singapore Resid Upgrade, Fawley Hydrofiner, and Strathcona Renewable Diesel. Cash capital expenditures were $6.3 billion in the second quarter, bringing year-to-date spending to $12.3 billion. Management reiterated full-year cash capex guidance of $27–29 billion.

Chevron’s revenue totaled $44.8 billion for second-quarter 2025, down from $51.2 billion a year earlier. Net income totaled $2.5 billion versus $4.4 billion a year ago. According to Chevron, reported earnings decreased compared to last year primarily due to lower crude oil prices, lower income from upstream and downstream equity affiliates, and an unfavorable fair value adjustment for Hess shares.

Chevron’s worldwide and US net oil-equivalent production set quarterly records. Worldwide production was up from a year ago as growth at the company’s Tengizchevroil (TCO) affiliate, the Gulf of Mexico, and the Permian basin more than offset the impacts of asset sales. Permian basin production increased to 1 MMboe/d in the second quarter.

Meantime, cash returned to shareholders was $5.5 billion, marking 13 straight quarters above $5 billion. Chevron completed the acquisition of Hess Corp. in July.

ConocoPhillips’ second-quarter revenue was $14.7 billion, up from $14.1 billion in the year-ago period. Net income was $2.0 billion versus $2.3 billion last year. Total production averaged 2.4 MMboe/d, with Lower 48 output of 1.51 MMboe/d.

During the quarter, ConocoPhillips’ capital expenditures and investments were $3.3 billion; the company returned $2.2 billion to shareholders (about $1.2 billion in repurchases and $1.0 billion in ordinary dividends). It also agreed to sell Anadarko basin assets for $1.3 billion and maintained full-year production guidance (midpoint unchanged) while giving third-quarter guidance of 2.33–2.37 MMboe/d.

Occidental Petroleum’s revenue was $6.5 billion for second-quarter 2025, down from $6.9 billion in second-quarter 2024. Net income was $288 million, down from $992 million a year earlier. Operating cash flow was $3.0 billion and free cash flow before working capital $0.7 billion, with capital spending of $2.0 billion.

Total company production averaged 1.4 MMboe/d, including 770,000 boe/d in the Permian basin. The company said divestitures announced since the start of the quarter totaled about $950 million, of which about $370 million has already closed. The company reduced the midpoint of 2025 capital guidance by $100 million, and noted midstream and marketing exceeded the high end of guidance.

EOG Resources reported revenue of $5.5 billion and net income $1.3 billion for second-quarter 2025. EOG’s second-quarter release focused on strong well productivity across core basins, steady execution in the Delaware basin and Eagle Ford, and adherence to its double-premium return thresholds. Second-quarter volumes were 1.13 MMboe/d total. Capital expenditures were $1.52 billion. The operator updated 2025 guidance following the closing of the Encino Acquisition Partners deal and completed a $3.5 billion debt offering to fund it.

Devon Energy reported revenues of $3.8 billion, down from year-ago revenues of $4.3 billion. Net income was $899 million for the quarter, down from $1.1 billion a year ago. Production averaged 841,000 boe/d, with oil at 387,000 b/d. Capital investment was $932 million, about 7% below guidance.

The company returned $405 million to shareholders through the fixed dividend and buybacks, sold its Matterhorn Pipeline equity for $372 million, and acquired remaining non-controlling interests in Cotton Draw Midstream for $260 million. Devon said it increased full-year 2025 production guidance and reduced full-year capex by about $100 million.

US oil and gas firms' 2Q25 revenues, earnings

US independent refiners

Marathon Petroleum reported net income of $1.2 billion for second-quarter 2025, compared with net income of $1.5 billion for second-quarter 2024. Refining & Marketing (R&M) segment reported adjusted EBITDA of $1.9 billion in second-quarter 2025, versus $2.0 billion a year ago. R&M margin was $17.58/bbl for the second quarter, versus $17.53/bbl a year ago. R&M margin results were driven by higher capture, despite a weaker margin environment year-over-year. Crude capacity utilization was 97%, resulting in total throughput of 3.1 million b/d.

Valero’s revenue for second-quarter 2025 was $29.9 billion, down from $34.5 billion a year ago. Net income was $714 million, down from $880 million in the prior year’s second quarter. The Refining segment reported operating income of $1.3 billion for second-quarter 2025, compared with operating income of $1.2 billion for second-quarter 2024. Refining throughput volumes averaged 2.9 million b/d in this year’s second quarter.

Phillips 66 reported second-quarter earnings of $877 million and adjusted earnings of $973 million, including $239 million of pre-tax accelerated depreciation on the Los Angeles Refinery. The company operated at 98% capacity utilization in refining with 86% clean product yield, and also completed its midstream acquisition of EPIC NGL, now renamed Coastal Bend.

PBF Energy reported second-quarter revenue of $7.47 billion, compared with $8.74 billion a year earlier. PBF Energy also reported a net loss of $5.4 million for second-quarter 2025, which was a significant improvement from the prior year's net loss of $65.2 million. The company was impacted by soft refining margins but saw insurance recoveries and improved performance across its regions.

PBF’s refining throughput of about 965,000 b/d, an operating refining margin of $12.80/bbl. The firm also restored partial operations at its Martinez refinery after a February fire and expects to sell its terminal assets for $175 million in third-quarter 2025.

Canadian firms

All financial figures are presented in Canadian dollars unless noted otherwise.

Suncor’s net earnings were $1.13 billion in second-quarter 2025, compared with $1.57 billion in the prior year quarter. The company’s total Oil Sands bitumen production increased to a second-quarter record of 860,800 b/d, compared with 834,400 b/d in the prior year quarter, and included record second-quarter production at Firebag. Refining throughput totaled 442,000 b/d at 95% utilization, compared with 430,500 b/d and 92%, respectively, in the prior-year quarter. The increase was primarily due to strong operating performance and the efficient execution of planned maintenance activities.

Cenovus reported net income of $851 million for the year’s second quarter, compared with $1.0 billion for second-quarter 2024. Cenovus disclosed cash from operating activities of $2.37 billion, and capital investment of $1.16 billion in the quarter.

Total upstream production was 765,900 boe/d, reflecting planned turnarounds at the Foster Creek and Sunrise oil sands assets, maintenance at offshore facilities, and short-term production impacts from wildfire activity at Christina Lake. Downstream crude throughput was 665,800 b/d, representing an overall utilization rate of 92% and including the successful completion of a turnaround at the Toledo Refinery 11 days ahead of schedule.

Canadian Natural Resources (CNRL) reported net earnings of about $2.5 billion and adjusted net earnings from operations of around $1.5 billion. CNRL reported second-quarter 2025 production of 1.42 MMboe/d, about 10% higher than the year-ago levels, reflecting both opportunistic acquisitions and organic growth. Oil Sands Mining and Upgrading production averaged 463,808 b/d in second-quarter 2025, an increase of 13% from second-quarter 2024 levels.

Imperial reported revenue of $11.2 billion for second-quarter 2025 versus $13.4 billion a year earlier. Net income was $949 million, down from $1.1 billion a year ago, mainly due to lower upstream price realizations and a weaker chemical segment.

Upstream production totaled 427,000 boe/d, its highest second quarter in over 30 years. Kearl achieved highest-ever second-quarter production of 275,000 boe/d (195,000 boe/d Imperial's share). The company also completed construction and commissioning on Canada's largest renewable diesel plant at the Strathcona refinery.