Exxon Mobil 2nd-Quarter Profit Down 57% On Lower Revenue, Big-Year Earlier Gains

   By Tess Stynes 
 

Exxon Mobil Corp.'s (XOM) second-quarter earnings fell 57% amid weaker refining margins and volume and as the year-earlier period included a net asset-sale gain of $7.5 billion.

The world's largest publicly traded oil company is also the largest natural gas producer in the U.S., since its $25 billion acquisition of XTO Energy Inc. in 2010. Exxon has added to its shale-gas assets through additional deals since then, such as its $1.6 billion deal for Denbury Resources Inc.'s (DNR) Bakken assets last year.

Exxon's production has been mostly lower over the past year, turning up modestly during the first quarter after a string of declines. A North American shale-drilling boom has contributed to fluctuations in oil and natural-gas prices that have challenged the sector. However, an abundance of lower price crude has benefited Exxon's refining margins.

Exxon Mobil reported a profit of $6.86 billion, or $1.55 a share, down from $15.91 billion, or $3.41 a share, a year earlier. Revenue decreased 16% to $106.5 billion.

Analysts polled by Thomson Reuters recently expected per-share earnings of $1.90 and revenue of $105.54 billion.

Production decreased 1.9% on an oil-equivalent basis, as oil production and natural-gas output were both lower.

Exploration and production operating earnings fell 25% amid higher operating expenses and a year-earlier gain in Angola.

The company's refining and marketing business reported operating earnings plunged 76% amid weaker refining margins and a year-earlier gain of $5.3 billion gain associated a restructuring in its Japan business.

The company spent $4 billion on stock buybacks during the quarter.

Shares were down 1.6% at $92.29 in recent premarket trading. Through Wednesday's close, the stock is up 8.3% this year.

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