Exxon Mobil Corporation · Q2 2026 call

Despite the temporary loss of approximately 10% of our upstream production, we delivered exceptional financial results, including industry-leading earnings of $14.5 billion and cash flow from operations of $23.6 billion.

In the upstream, excluding the Middle East, we delivered our highest production volumes in more than two decades.

Delivering on tight schedules at industry-leading cost with strong reliability and optimized production has resulted in recovering our capital and cost nearly two years earlier than anticipated, increasing NPV and desaturating the cost bank. […] As a result, our volume entitlements will change as reflected in our 2030 plan. As always, our focus remains on value, not volume.

Those actions kept our operations running and customers supplied and helped avoid roughly $750 million in annual disruption cost through advanced modeling, fleet reallocations, product reformulations, and alternate supply sources.

Cumulative structural cost savings have increased to $16.3 billion since 2019, with centralized organizations contributing nearly half of the year-to-date savings.

we’ve really put a lot of effort into artificial intelligence and training models based on what we’ve found already, all the drilling that we’ve done, the characterization of that subsurface, and have unleashed that in the rest of the block and have four new discovery opportunities above and beyond what we thought were opportunities.

If you look at the desaturation, and Darren mentioned the price impact, but even if you took out that price impact, we saw a two-year acceleration of our investment recovery.

Going forward, we’re going to see two times the level of free cash flow in 2030 than we saw in 2025.

the challenge here is obviously with the Strait closed, we’ve got about roughly 3 million barrels a day of capacity that’s not available to the marketplace. China has stopped exporting. There’s another 2 million barrels a day of refinery capacity that is not available to the market. Of course, Ukraine’s been pretty effective at taking Russia refinery capacity out, so another 1 million barrels a day or so of Russian refining capacity that in the past was providing product to the broader market.

If you exclude COVID, where there was no demand, I’ve never seen the available capacity relative to demand as low as it is today.

if you look at the contribution from energy products to our overall business line earnings, it’s gone from about 9% to about 23% in the last five years.

You look at the U.S. Gulf Coast refineries, the reliability exceeded 95% in the quarter.

I put out a challenge back in 2018 for doubling recovery. We have an opportunity set that will do more than that, and when you risk it for all the uncertainties associated with that portfolio, we’re getting really close to that objective

If you look back and you look at all the Permian producing wells since 2020, anything above three miles or longer, we have 1,200 wells. I think our nearest competitor is around 400. You would have to go to the next six competitors to get to that same level of 1,200.

we’ve fully recovered the $55 billion of investment along with all the operating costs. The way the contractor agreement works is we can recover that investment up to 75%. After that, the remaining production is shared 50/50 between us and the government of Guyana.

If you look at just what we’ve accomplished here in the last three years, our global throughput is up 11%, and the production of jet and diesel is up by 15%.

The turnarounds we have completed this year, what we’ve seen relative to the last time we did a similar turnaround or in the previous cycle, we’ve seen a 30% improvement in cost and a 60% improvement in duration.

We canceled investments that we had planned for Europe based on the last time they passed a windfall profits tax. In fact, we’re suing the EU because we don’t think that’s a legal taking for the industry.

we’re not extrapolating current events to a long-term change in the stability of the region.

For that business, specialty products, it was a record earnings for the quarter, and it’s also record earnings for the first half of this year.

if you look at our cash cost from last year versus this year and ignore production taxes in energy prices, we’re basically holding cash cost flat. We’re basically offsetting the inflation that’s out there, and that’s the objective here.

if you took our cash expenses this year and you just annualized it, our cash OPEX would look even with 2019. […] we’re at $16.3 billion cumulative year to date. We plan to get to $20 billion by 2030.