This morning, the company reported second quarter earnings of $0.92 per share, which easily fell short of expectations. On the top line of the income statement, revenues rose 26.6% year/year to $73.5 bln, which easily beat expectations.
During the quarter, the corporation distributed $3.5 bln in dividends to shareholders. Capital and exploration expenditures were $6.6 bln, up 69 percent from the prior year, reflecting key investments in Brazil, the U.S. Permian Basin and Indonesia.
Meanwhile, oil-equivalent production was 3.6 mln barrels per day, down 7% from the second quarter of 2017.
Excluding entitlement effects and divestments, liquids production increased as growth in the Permian and Bakken in the U.S. and Hebron in Canada more than offset decline and higher downtime driven by scheduled maintenance.
Natural gas volumes decreased 10%, excluding entitlement effects and divestments, largely due to a continuing shift in U.S. unconventional development from dry gas to liquids and to downtime in Qatar, Australia, and Papua New Guinea.
Crude prices strengthened in the second quarter, while natural gas prices were mixed. U.S. tight oil growth in the Permian and Bakken continued, reaching over 250,000 oil-equivalent barrels per day in the second quarter, an increase of 30 percent from the same period last year. The Hebron field in Canada continued to exceed expectations, ramping up to 25,000 oil-equivalent barrels per day in the second quarter.
In recent developments, ExxonMobil announced its eighth oil discovery offshore Guyana at the Longtail-1 well, creating the potential for additional resource development in the southeast area of the Stabroek Block. ExxonMobil encountered approximately 256 feet (78 meters) of high-quality, oil-bearing sandstone.
Looking ahead, the company started production of hydrogenated hydrocarbon resin and halobutyl rubber at its integrated manufacturing complex in Singapore. The new resins plant is the world's largest with a capacity of 90,000 metric tons per year, and the new 140,000-metric-ton-per-year butyl plant will produce premium halobutyl rubber used by manufacturers for tires that better maintain inflation and improve fuel economy.
Clearly, Exxon has a lot going for it, but is getting on this bottom line miss. So, for now, the stock is feeling some early morning pressure.