Exxon Mobil (NYSE: XOM) reported a stellar second-quarter profit of $9.2 billion, surpassing expectations thanks to increased output from its recent acquisition of Pioneer Natural Resources (NYSE: PXD). This achievement reflects a trend among major oil companies such as BP, Shell, and ConocoPhillips, all of whom have also beaten profit estimates.
The boost in profit was driven by record production in Guyana and the Permian Basin, offsetting lower oil and fuel prices. Exxon’s CFO, Kathryn Mikells, highlighted the efficiency of the Pioneer acquisition compared to its competitors, Chevron and ConocoPhillips, who are still awaiting regulatory approvals for their deals.
Exxon raised its 2024 output target by 13% to 4.3 million barrels of oil equivalent per day following the Pioneer acquisition. The company also increased its capital expenditures guidance to $28 billion and plans to buy back $19 billion in shares this year, the highest among its Western rivals.
Overall, Exxon’s strong performance in the second quarter demonstrates its ability to capitalize on strategic acquisitions and drive growth in the oil and gas sector. Investors can expect continued value and returns from this industry leader in the coming years.