US oil and gas giant ExxonMobil reported higher profits Friday on record oil and gas production following the acquisition of Pioneer Natural Resources, offsetting sharply lower downstream earnings.
Profits jumped 17.3 percent to $9.2 billion on a 12 percent increase in revenues to $93.1 billion, topping analyst estimates on both counts.
The petroleum heavyweight pointed to a lift in output from the Permian Basin in the United States following the Pioneer deal, which has also put the company on track for higher capital spending this year.
Another bright spot is ExxonMobil’s venture is Guyana, where the company during the second quarter filed an application for a seventh development with Guyanese officials, with anticipated startup in 2029.
These upstream highlights made up for a sharp drop in energy products due to excess supply of petroleum products that weakened profit margins.
Chemical profits also dipped compared with the year-ago period.
“We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company,” said Chief Executive Darren Woods.
“We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger.”
Shares of ExxonMobil rose 1.5 percent in pre-market trading.
