Exxon Mobil Corp.'s (XOM) second-quarter earnings fell 57% amid
weaker refining margins and volume and as the year-earlier period
included a net asset-sale gain of $7.5 billion.
The world's largest publicly traded oil company is also the
largest natural gas producer in the U.S., since its $25 billion
acquisition of XTO Energy Inc. in 2010. Exxon has added to its
shale-gas assets through additional deals since then, such as its
$1.6 billion deal for Denbury Resources Inc.'s (DNR) Bakken assets
last year.
Exxon's production has been mostly lower over the past year,
turning up modestly during the first quarter after a string of
declines. A North American shale-drilling boom has contributed to
fluctuations in oil and natural-gas prices that have challenged the
sector. However, an abundance of lower price crude has benefited
Exxon's refining margins.
Exxon Mobil reported a profit of $6.86 billion, or $1.55 a
share, down from $15.91 billion, or $3.41 a share, a year earlier.
Revenue decreased 16% to $106.5 billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of $1.90 and revenue of $105.54 billion.
Production decreased 1.9% on an oil-equivalent basis, as oil
production and natural-gas output were both lower.
Exploration and production operating earnings fell 25% amid
higher operating expenses and a year-earlier gain in Angola.
The company's refining and marketing business reported operating
earnings plunged 76% amid weaker refining margins and a
year-earlier gain of $5.3 billion gain associated a restructuring
in its Japan business.
The company spent $4 billion on stock buybacks during the
quarter.
Shares were down 1.6% at $92.29 in recent premarket trading.
Through Wednesday's close, the stock is up 8.3% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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