Argus Media Limited

07/29/2022 | News release | Distributed by Public on 07/29/2022 06:57

ExxonMobil profit lifted by Permian, Guyana output

ExxonMobil posted record profit in the second quarter, as oil prices surged on the back of the war in Ukraine and output rose in Guyana and the Permian basin.

Profit of $17.9bn in the second quarter compared with $4.7bn in the same quarter of 2021. Revenue jumped by 70pc to $115.68bn.

"Earnings and cash flow benefited from increased production, higher realizations, and tight cost control," chief executive officer Darren Woods said in a statement.

Output came in at 3.73mn b/d of oil equivalent (boe/d) in the second quarter, up from 3.58mn boe/d in the same period last year.

"We produced higher volumes from our advantaged assets in Guyana and the Permian basin, and recovered from the tough first-quarter weather conditions in Canada," chief financial officer Kathy Mikells said.

ExxonMobil boosted production in the Permian by about 130,000 boe/d in the first half of the year compared with the same period of 2021. It expects to grow full-year output from the basin by 25pc for a second year in a row.

Offshore Guyana production capacity has increased to more than 340,000 boe/d. Liza Phase 2 is ramping up and recently reached design capacity of 220,000 b/d. Meanwhile, the first phase is producing at more than 10pc above design capacity.

The company expects overall output to be "essentially flat" in the third quarter due to the impact of recently announced divestments.

The stellar results are likely to spur fresh criticism from the White House, which has frequently accused producers of holding back on drilling in order to reward investors. Last month, US president Joe Biden accused ExxonMobil of making "more money than God this year."

Profit in the second quarter were also buoyed by proceeds of $300mn related to the sale of assets in the Barnett Shale.

Capital expenditure reached $4.6bn in the quarter and $9.5bn in the year to date. The company is on track to meet its full-year spending guidance of $21bn-$24bn.

Earlier this year, ExxonMobil tripled its share repurchase program to $30bn through the end of next year.

By Stephen Cunningham