U.S. oil and gas major, ExxonMobil booked a smaller profit in the second quarter of 2019 compared to the prior-year quarter, but the company’s production increased by 7 percent.
The company posted second quarter 2019 earnings of $3.1 billion, compared with $4 billion a year earlier.
Earnings included a favorable identified item of about $500 million, reflecting the impact of a tax rate change in Alberta, Canada.
The company’s revenues dropped to $69.1 billion in 2Q 2019 from $73.5 billion in the same period last year.
Capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.
Oil-equivalent production was 3.9 million barrels per day, up 7 percent from the second quarter of 2018.
Liquids production increased 8 percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Natural gas volumes increased 5 percent, excluding entitlement effects and divestments.
ExxonMobil said that average crude prices were stronger than first quarter, while natural gas prices declined with supply length and crude-linked LNG lag effects.
It is also worth noting that the company increased its estimated gross recoverable resource for the Stabroek block in Guyana from 5.5 billion to over 6 billion oil-equivalent barrels. During the quarter, the company made its 13th discovery on the block with the Yellowtail-1 well.