ExxonMobil Reverses First-Quarter Earnings Decline

The Tip Desk · August 3, 2026 · 3 min read

Second-quarter profit reached $14.5 billion as refining margins and crude realizations more than offset Middle East volume losses.

ExxonMobil (XOM) posted second-quarter 2026 earnings of $14.5 billion, compared with $7.1 billion a year earlier, reversing a first-quarter drop in which profit fell to $4.2 billion from $7.7 billion.

The company said markets were supportive, but performance also reflected the strength of the portfolio and operating model. The increase was driven by higher prices and margins, advantaged investments across Upstream and Energy Products, and structural cost savings. It was partly offset by higher depreciation, lower volumes from scheduled maintenance and Middle East disruptions, and identified items, primarily impairments and financial reserves.

Energy Products was the sharpest turn. The refining and marketing segment earned $5.465 billion in the second quarter, versus a $1.262 billion loss in the first quarter. Stronger refining margins increased earnings by $3.18 billion, and favorable derivative mark-to-market added $2.56 billion. Identified items reduced earnings by $1.18 billion, mainly from impairments. Middle East supply disruptions cut earnings by $310 million, and scheduled maintenance reduced base-volume earnings by $280 million. Worldwide refinery throughput was 3,562 thousand barrels a day.

Upstream earnings were $7.927 billion, versus $5.402 billion a year earlier. Higher crude realizations increased earnings by $4.65 billion, partly offset by lower gas realizations. Advantaged volume growth, mainly from Guyana and the Permian, added $1.14 billion. Middle East disruption reduced earnings by $1.06 billion. Expenses decreased earnings by $690 million due to higher depreciation. Identified items included a $1.199 billion loss from financial reserves.

Worldwide oil-equivalent production was 4,514 thousand barrels a day, down 116 thousand barrels a day from 4,630 thousand barrels a day a year earlier. The decline was driven by Middle East disruption impacts, mostly offset by Permian and Guyana growth. United States crude, natural gas liquids, bitumen and synthetic oil production was 1,653 thousand barrels a day. Worldwide natural gas available for sale was 6,849 million cubic feet a day.

Chemical Products earnings were $1.131 billion, versus $293 million a year earlier. Increased North America ethane feed advantage and performance chemical margins raised earnings by $980 million. Advantaged volume growth decreased earnings by $130 million from weak Asia Pacific market dynamics. Identified items reduced earnings by $83 million. Worldwide chemical sales were 4,471 thousand metric tons.

Specialty Products earnings were $956 million, versus $780 million a year earlier. Higher basestock margins increased earnings by $270 million. Middle East supply disruptions reduced earnings by $110 million. Worldwide specialty sales were 1,784 thousand metric tons.

Cash capital expenditures were $6.787 billion, up $0.2 billion from $6.603 billion in the second quarter of 2025. Upstream accounted for $5.852 billion of that total. Energy Products spending was $527 million, Chemical Products $307 million, and Specialty Products $11 million.

Cumulative structural cost savings versus 2019 totaled $16.3 billion as of the second quarter, including an additional $1.2 billion in the first six months of 2026. For the six months ended June 30, 2026, earnings were $18.7 billion, compared with $14.8 billion a year earlier. Cash capital expenditures for those six months were $13.0 billion. The corporation distributed $8.6 billion in dividends and repurchased $10.0 billion of common stock.