#ExxonMobil Reports Higher Q2 Earnings
ExxonMobil Holdings Corporation (NYSE: XOM) reported second-quarter 2026 earnings of $14.5 billion, or $3.48 per share, on July 31, 2026, from its Spring, Texas headquarters. The company also reported its highest Upstream production in more than two decades, excluding the Middle East disruptions.
Adjusted earnings, a non-GAAP measure the company introduced this quarter, were $14.7 billion, or $3.52 per share. That compared with earnings of $4.2 billion, or $1.00 per share, in the first quarter of 2026.
#Record Permian Output Underpins Upstream Results
Upstream earnings were $7.9 billion on a U.S. GAAP basis. ExxonMobil reported record Permian production of more than 1.8 million oil-equivalent barrels per day, which it said was consistent with a planned 9% compound annual growth rate through 2030.
Excluding Middle East volumes, the company produced roughly 4.1 million oil-equivalent barrels per day. Middle East production was 400 thousand oil-equivalent barrels per day, comprising 150 thousand of domestic gas in Qatar and 250 thousand of liquids in the United Arab Emirates.
The fifth floating production, storage, and offloading vessel for Guyana set sail during the quarter, with production startup on plan for the fourth quarter of 2026. The company said the vessel will add 250 thousand barrels per day of capacity.
"The second quarter was shaped by disruption, but defined by execution," Darren Woods, chairman and chief executive officer, said in the earnings release. He said market conditions were supportive and that performance reflected the portfolio and operating model the company has built over many years.
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#Refining and Chemical Margins Rise Amid Supply Disruptions
Energy Products earnings were $5.5 billion on a GAAP basis, and the company reported a second-quarter record for diesel production. ExxonMobil attributed the result to U.S. Gulf Coast utilization and its integrated refining system.
The quarter unfolded against a reduction in global refining capacity. ExxonMobil said nearly 9% of global capacity was offline across Russia, China, and the Middle East, limiting supply of gasoline, diesel, and other products and pushing refining margins to record levels.
Chemical Products earnings were $1.1 billion on a GAAP basis. The company said second-quarter chemical margins improved by approximately 180%, driven by strong reliability at its feedstock-advantaged North America steam crackers, while crude disruptions increased naphtha feedstock costs and tighter supply-demand conditions supported stronger margins.
#Cash Flow and Shareholder Distributions
Cash flow from operations was $23.6 billion in the quarter, and free cash flow was $17.2 billion. The company returned $9.4 billion to shareholders, including $4.3 billion in dividends and $5.1 billion in share repurchases.
ExxonMobil said it reduced net debt by more than $7 billion during the quarter and ended the period with $10.6 billion in cash. It reported cash capital expenditures of $6.8 billion for the quarter and $13 billion year-to-date, and declared a third-quarter dividend of $1.03 per share, payable September 10, 2026.
Cumulative structural cost savings since 2019 reached $16.3 billion, which the company said exceeded the combined total reported by other international oil companies, a group it defines as BP, Chevron, Shell, and TotalEnergies.
#Guyana Entitlement and Middle East Set Third-Quarter Outlook
For the third quarter, ExxonMobil said its net entitlement volumes in Guyana would decrease by approximately 100 thousand barrels per day following cost recovery under the production-sharing agreement. The company said this reflected a contractual reallocation of production rather than lower gross output, and that its 2030 production guidance was unchanged.
The company said a full-quarter closure of the Strait of Hormuz would reduce Middle East production by approximately 750 thousand oil-equivalent barrels per day compared with 2025. It said two damaged Qatar LNG trains would remain offline even after the strait reopens.
ExxonMobil said it expected scheduled maintenance in Product Solutions to be lower than in the second quarter and corporate and financing expenses of $0.8 billion to $1 billion. The timing of the Strait of Hormuz reopening, the pace of Middle East recovery, and commodity price movements remain key risks to that outlook.