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XOM posted Q2 EPS of $1.64, beating estimates but down y/y from $2.14 on lower energy prices.
Higher U.S. liquid production and seasonal refining demand boosted results despite the top-line weakness.
Chemical earnings dropped on compressed margins, while Specialty Products hit record sales volumes.
Exxon Mobil Corporation (XOM - Free Report) reported second-quarter 2025 earnings per share of $1.64 (excluding identified items), which beat the Zacks Consensus Estimate of $1.49. The bottom line declined from the year-ago level of $2.14.
Total quarterly revenues of $81.5 billion missed the Zacks Consensus Estimate of $82.8 billion. The top line declined from the year-ago figure of $93.06 billion.
Better-than-expected quarterly earnings were fueled by higher liquid production from the United States and stronger industry refining margins resulting from higher seasonal demand and increased volumes. The positives were partially offset by lower crude oil and natural gas prices.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
The segment reported quarterly earnings (excluding identified items) of $5.40 billion, down from $7.1 billion in the year-ago quarter. The decline was primarily led by lower crude oil and natural gas prices.
Operations in the United States recorded a profit of $1.21 billion, lower than $2.43 billion in the June-end quarter of 2024. The company reported a profit of $4.19 billion from non-U.S. operations compared with $4.64 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,630 thousand barrels of oil equivalent per day (MBoe/d), higher than 4,358 MBoe/d a year ago. The figure missed our estimate of 4,651.1 MBoe/d.
Liquids production increased to 3,259 thousand barrels per day (MBbls/d) from 2,984 MBbls/d in the prior-year quarter. The figure surpassed our estimate of 3,230.2 MBbls/d. The acquisition of Pioneer served as the key catalyst for the increase. The increase can be attributed to higher production from the United States and Australia/Oceania.
Natural gas production totaled 8,219 million cubic feet per day (Mmcf/d), down from 8,243 Mmcf/d a year ago. The figure also missed our estimate of 8,525.3 Mmcf/d.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $62.58 per barrel, down from the year-ago figure of $79. The figure also missed our estimate of $62.78. Crude price realization for non-U.S. operations decreased to $62.01 per barrel from $77.60 in the year-ago quarter. Our estimate for the same was pinned at $59.94 per barrel.
Natural gas price in the United States was $2.41 per thousand cubic feet (Mcf), higher than the year-ago level of $1.04. Our estimate for the same was pegged at $2.74 per Mcf. Also, in the non-U.S. section, the metric increased to $10.23 per Mcf from $9.73. The figure missed our estimate of $11.20 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $1,366 million, up from $946 million a year ago. The reported figure surpassed our estimate of $702.5 million. The increase was driven by stronger industry refining margins resulting from higher seasonal demand and increased volumes due to reduced scheduled maintenance, partially offset by unfavorable foreign exchange impacts.
Chemical Products
This unit of ExxonMobil recorded a profit of $293 million (excluding identified items), lower than $779 million in the year-ago quarter. The reported figure missed our estimate of $512.5 million. The segment were impacted by compressed margins and elevated project-specific expenses tied to the China Chemical Complex, though partially mitigated by ongoing structural cost reductions.
Specialty Products
This unit recorded a profit of $780 million (excluding identified items), up from $751 million in the year-ago quarter. Our projection for the same was pegged at $642.1 million. The segment benefited from stronger basestock margins and record-high sales volumes of high-value products.
Financials
ExxonMobil generated a cash flow of $11.55 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $6.33 billion.
Total cash and cash equivalents were $14.35 billion, and long-term debt totaled $33.57 billion.
Guidance
For 2025, the company expects a cash capital expenditure of $27-$29 billion, consistent with the previous guidance.
XOM’s Zacks Rank & Key Picks
Currently, ExxonMobil carries a Zacks Rank #3 (Hold).
Delek Logistics owns, operates, acquires, and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.
Delek Logistics’s earnings beat estimates in two of the trailing four quarters and met once, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.4% year-over-year growth.
HighPeak Energy is a fast-growing independent oil and gas producer with a premier position in the heart of the Midland Basin, primarily in Howard County, TX. With more than 100,000 net contiguous acres and greater than 90% operated, the company benefits from exceptional scale, high oil cut and industry-leading margins. Its strong infrastructure and efficient capital deployment support consistent operational performance and a deep inventory of drilling opportunities.
HighPeak Energy has a Zacks Style Score of A for Value. The Zacks Consensus Estimate for HPK’s 2025 earnings indicates 3% year-over-year growth.
Vermilion Energy is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The energy explorer’s diversification across different continents provides it with certain advantages relative to the other upstream players. VET, with its unique portfolio of high-margin, low-decline assets, is currently focused on cost reductions and positive free cash flow generation.
VET’s 2025 earnings are expected to skyrocket 231.8% year over year. Vermilion Energy has a Zacks Style Score of A for Value and Momentum, and B for Growth.
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ExxonMobil Q2 Earnings Surpass Estimates, Revenues Decline Y/Y
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) reported second-quarter 2025 earnings per share of $1.64 (excluding identified items), which beat the Zacks Consensus Estimate of $1.49. The bottom line declined from the year-ago level of $2.14.
Total quarterly revenues of $81.5 billion missed the Zacks Consensus Estimate of $82.8 billion. The top line declined from the year-ago figure of $93.06 billion.
Better-than-expected quarterly earnings were fueled by higher liquid production from the United States and stronger industry refining margins resulting from higher seasonal demand and increased volumes. The positives were partially offset by lower crude oil and natural gas prices.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operational Performance
Upstream
The segment reported quarterly earnings (excluding identified items) of $5.40 billion, down from $7.1 billion in the year-ago quarter. The decline was primarily led by lower crude oil and natural gas prices.
Operations in the United States recorded a profit of $1.21 billion, lower than $2.43 billion in the June-end quarter of 2024. The company reported a profit of $4.19 billion from non-U.S. operations compared with $4.64 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,630 thousand barrels of oil equivalent per day (MBoe/d), higher than 4,358 MBoe/d a year ago. The figure missed our estimate of 4,651.1 MBoe/d.
Liquids production increased to 3,259 thousand barrels per day (MBbls/d) from 2,984 MBbls/d in the prior-year quarter. The figure surpassed our estimate of 3,230.2 MBbls/d. The acquisition of Pioneer served as the key catalyst for the increase. The increase can be attributed to higher production from the United States and Australia/Oceania.
Natural gas production totaled 8,219 million cubic feet per day (Mmcf/d), down from 8,243 Mmcf/d a year ago. The figure also missed our estimate of 8,525.3 Mmcf/d.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $62.58 per barrel, down from the year-ago figure of $79. The figure also missed our estimate of $62.78. Crude price realization for non-U.S. operations decreased to $62.01 per barrel from $77.60 in the year-ago quarter. Our estimate for the same was pinned at $59.94 per barrel.
Natural gas price in the United States was $2.41 per thousand cubic feet (Mcf), higher than the year-ago level of $1.04. Our estimate for the same was pegged at $2.74 per Mcf. Also, in the non-U.S. section, the metric increased to $10.23 per Mcf from $9.73. The figure missed our estimate of $11.20 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $1,366 million, up from $946 million a year ago. The reported figure surpassed our estimate of $702.5 million. The increase was driven by stronger industry refining margins resulting from higher seasonal demand and increased volumes due to reduced scheduled maintenance, partially offset by unfavorable foreign exchange impacts.
Chemical Products
This unit of ExxonMobil recorded a profit of $293 million (excluding identified items), lower than $779 million in the year-ago quarter. The reported figure missed our estimate of $512.5 million. The segment were impacted by compressed margins and elevated project-specific expenses tied to the China Chemical Complex, though partially mitigated by ongoing structural cost reductions.
Specialty Products
This unit recorded a profit of $780 million (excluding identified items), up from $751 million in the year-ago quarter. Our projection for the same was pegged at $642.1 million. The segment benefited from stronger basestock margins and record-high sales volumes of high-value products.
Financials
ExxonMobil generated a cash flow of $11.55 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $6.33 billion.
Total cash and cash equivalents were $14.35 billion, and long-term debt totaled $33.57 billion.
Guidance
For 2025, the company expects a cash capital expenditure of $27-$29 billion, consistent with the previous guidance.
XOM’s Zacks Rank & Key Picks
Currently, ExxonMobil carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Delek Logistics Partners, LP (DKL - Free Report) , HighPeak Energy (HPK - Free Report) and Vermilion Energy Inc. (VET - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delek Logistics owns, operates, acquires, and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.
Delek Logistics’s earnings beat estimates in two of the trailing four quarters and met once, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.4% year-over-year growth.
HighPeak Energy is a fast-growing independent oil and gas producer with a premier position in the heart of the Midland Basin, primarily in Howard County, TX. With more than 100,000 net contiguous acres and greater than 90% operated, the company benefits from exceptional scale, high oil cut and industry-leading margins. Its strong infrastructure and efficient capital deployment support consistent operational performance and a deep inventory of drilling opportunities.
HighPeak Energy has a Zacks Style Score of A for Value. The Zacks Consensus Estimate for HPK’s 2025 earnings indicates 3% year-over-year growth.
Vermilion Energy is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The energy explorer’s diversification across different continents provides it with certain advantages relative to the other upstream players. VET, with its unique portfolio of high-margin, low-decline assets, is currently focused on cost reductions and positive free cash flow generation.
VET’s 2025 earnings are expected to skyrocket 231.8% year over year. Vermilion Energy has a Zacks Style Score of A for Value and Momentum, and B for Growth.