ExxonMobil profit drops in 2Q

U.S. oil major ExxonMobil booked a smaller profit in the second quarter of 2019 compared to the prior-year quarter, but the company’s production increased by 7 percent. 

The company on Friday posted second quarter 2019 earnings of $3.1 billion, compared with $4 billion a year earlier.

Earnings included a favorable identified item of about $500 million, reflecting the impact of a tax rate change in Alberta, Canada.

The company’s revenues dropped to $69.1 billion in 2Q 2019 from $73.5 billion in the same period last year.

Capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.

Oil-equivalent production was 3.9 million barrels per day, up 7 percent from the second quarter of 2018.

Liquids production increased 8 percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Natural gas volumes increased 5 percent, excluding entitlement effects and divestments.

ExxonMobil said that average crude prices were stronger than first quarter, while natural gas prices declined with supply length and crude-linked LNG lag effects.

It is also worth noting that the company increased its estimated gross recoverable resource for the Stabroek block in Guyana from 5.5 billion to over 6 billion oil-equivalent barrels. During the quarter, the company made its 13th discovery on the block with the Yellowtail-1 well.

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