ExxonMobil Q2 EPS Beat but Stock Fell

Core Insights - ExxonMobil reported second-quarter 2025 GAAP earnings per share of $1.64, surpassing analyst expectations of $1.57, but both GAAP earnings and revenue declined year over year, with net income at $7.1 billion and revenue at $79.5 billion, reflecting an 11.7% decrease compared to Q2 2024 [1][2][3] Financial Performance - GAAP earnings per share decreased by 23.4% from $2.14 in Q2 2024 to $1.64 in Q2 2025 [3] - Revenue fell from $89.99 billion in Q2 2024 to $79.5 billion in Q2 2025, marking an 11.7% decline [3] - Cash flow from operating activities was reported at $11.5 billion, with free cash flow at $5.4 billion [11] Production and Operations - Upstream production reached a record average of 4.6 million oil-equivalent barrels per day, a 13% increase year over year, driven by the integration of Pioneer and production ramp-up in Guyana [6] - Despite production growth, upstream earnings fell from $6.8 billion in Q1 2025 to $5.4 billion due to lower crude oil and natural gas prices [7] - The refining segment reported earnings of $1.37 billion, up $539 million from the previous quarter, attributed to stronger industry margins and improved reliability [8] Strategic Initiatives - The company has focused on expanding its upstream portfolio, notably through the acquisition of Pioneer Natural Resources in May 2024 [5] - ExxonMobil aims to bring 10 new projects online by the end of 2025, expected to add $3 billion in annual earnings by 2026 [15] - The company continues to target $1 billion in annual earnings from its low-carbon businesses by 2030 [16] Shareholder Returns - Total shareholder returns amounted to $9.2 billion, including $5.0 billion in share repurchases and approximately $4.3 billion in dividends [10] - The quarterly dividend was maintained at $0.99 per share [10][16] Financial Position - The company's debt-to-capital ratio was 13%, with net debt to capital at 8%, indicating a strong balance sheet [12] - Capital spending reached $6.3 billion, with year-to-date investment close to $12.3 billion, and full-year capital-expenditure plans confirmed at $27 to $29 billion [11]