Exxon Q2 profit doubles to $14.5bn on surging oil prices

Exxon Mobil reported a 105% year-on-year increase in second-quarter net profit, reaching $14.53 billion on the back of a 42% revenue surge to $116.02 billion. The earnings jump was driven primarily by a dramatic rally in crude prices.

Benchmark US crude jumped from roughly $68 to $115 per barrel during the quarter. The spike was fueled by global supply concerns stemming from the US-Iran conflict, alongside sustained buying interest from refiners and traders. For Exxon, these elevated prices translated directly into stronger realized selling prices across its portfolio.

The financial gains were not solely a function of commodity pricing. Exxon recorded its highest upstream production in over two decades, excluding Middle East disruptions. The company posted record output in the Permian Basin and achieved record second-quarter diesel production.

Looking at future supply, the company's fifth Guyana FPSO vessel departed on schedule. Production from that vessel is expected to begin in the fourth quarter of 2026, adding 250,000 barrels per day of capacity. "The second quarter was shaped by disruption but defined by execution," CEO Darren Woods said. "Markets were supportive, but our performance reflected the strength of the portfolio and operating model we have built over many years."

Exxon is deploying its generated cash flow aggressively. The board declared a dividend of $1.03 per share, payable on September 10, 2026. Year-to-date capital expenditure has reached $13 billion, directed toward expanding high-value assets. The company also reached a final investment decision on a 120 KTA Proxxima blending expansion in Louisiana.

The stock market has reacted favorably to the combination of higher prices and operational discipline. After suffering a cumulative 19% drop over the previous three months, shares have rebounded roughly 15% in July. The stock remains up about 30% for 2026, even after pulling back from an all-time high of $176 set during a broader rally that began in mid-2025.

“As conditions changed, we moved products where they were needed, optimised assets, and supported customers,” Woods added. “We delivered strong earnings and cash flow, continued investing in advantaged opportunities, returned cash to shareholders, and strengthened the balance sheet. Importantly, we remain committed to further growing advantaged production to help meet the world's need for reliable energy.”