ExxonMobil (NYSE: XOM) technically missed Wall Street's expectations for the second quarter. Adjusted earnings came in at $3.52 per share, just below the consensus estimate of $3.60. That was enough to trigger a negative reaction.
But focusing only on the earnings miss overlooks what was arguably one of ExxonMobil's strongest operating quarters in years. The company reported $14.5 billion in earnings and $14.7 billion in adjusted earnings, its highest quarterly earnings in roughly four years. ExxonMobil also generated $23.6 billion in cash flow from operations and $17.2 billion in free cash flow, giving it plenty of room to continue investing in growth while returning cash to shareholders.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » Perhaps the most encouraging numbers weren't on the income statement at all. Exxon delivered its highest upstream production in more than two decades, excluding temporary Middle East disruptions. Production in the Permian Basin reached a record 1.8 million barrels of oil equivalent per day, while the company's fifth floating production vessel for Guyana is scheduled to begin operations in the fourth quarter, adding another 250,000 barrels per day of production capacity.
The downstream business also performed well. Exxon reported record diesel production, helping offset refinery maintenance earlier in the year. Chemical products earned $1.13 billion, while the Energy Products segment rebounded sharply to $5.47 billion after posting a loss during the previous quarter.
One reason Exxon continues separating itself from many competitors is its ability to generate cash across a wide range of commodity prices. During the quarter, the company returned $9.4 billion to shareholders through $4.3 billion in dividends and $5.1 billion in share repurchases. It also reduced net debt by approximately $7 billion, further strengthening an already healthy balance sheet.
Extract — continue reading at the source.
