◆ Inside the Latest Quarter (Q2 2026)

ExxonMobil (XOM) — the variant view

A war raised the margin on everything ExxonMobil still had to sell, and cut the amount it had to sell.

📈 XOM valuation, revenue & earnings — P/E, P/S, revenue, EPS →

ExxonMobil earned $14,525 million in the second quarter of 2026 against $7,082 million a year earlier — $3.48 a share against $1.641. Cash flow from operations was $23,555 million and free cash flow $17,236 million; the company distributed $9.4 billion, being $4.3 billion of dividends and $5.1 billion of buybacks, and raised the quarterly dividend to $1.032. On the face of it, one of the best quarters in the company's history.

Q2 2026: every volume down, every earnings line up4,514Production kboed3,562Throughput kbd4,471Chemical sales kt14,525Earnings $mA year earlier: 4,630 kboed, 3,936 kbd, 5,264 kt and $7,082m of earnings.
ExxonMobil produced less oil, refined less crude and sold less plastic, and earned twice as much.

Read the drivers and it becomes a different quarter. A Middle East supply disruption runs through every segment, and it cost ExxonMobil volume in all of them while raising the price of what was left. Upstream lost $1,060 million of earnings from Middle East disruption impacts and gained $4,650 million from higher crude realisations3. Energy Products lost $310 million and gained $3,180 million from stronger refining margins4. Specialty Products lost $110 million and gained $270 million on higher basestock margins5.

The physical effect is visible in the volumes. Oil-equivalent production fell to 4,514 thousand barrels a day from 4,6306, with Asian natural gas dropping from 3,206 to 1,274 million cubic feet a day — sixty per cent7. Refinery throughput fell from 3,936 to 3,562 thousand barrels a day, with Europe down sixteen per cent and Asia Pacific twenty-eight8. Chemical Products sold 4,471 thousand tonnes against 5,2649. ExxonMobil produced less oil, refined less crude and sold less plastic, and earned twice as much.

The second thing to know is how much of the improvement is accounting. Energy Products timing effects increased earnings by $2,560 million in the quarter on favourable derivative mark-to-market impacts — more than half the segment's improvement — while on a year-to-date basis the same line reads minus $770 million10. Identified items went the other way: $1,199 million of Upstream financial reserves, $1,180 million of Energy Products impairments11. Adjusted earnings were $14.7 billion against reported $14.5 billion12.

The genuinely good news is underneath both. Record Permian production of more than 1.8 million oil-equivalent barrels a day, the highest company production in more than two decades excluding the Middle East disruptions, strong Gulf Coast utilisation, record diesel production, and a final investment decision on a 120 thousand tonne a year Proxxima expansion in Louisiana13. Darren Woods described the quarter as shaped by disruption, but defined by execution14.

The third quarter will settle which of those two words mattered. The Middle East volume losses and the margin gains should both unwind; if earnings hold near $14 billion when they do, the execution claim was right. If they revert toward the $4,183 million ExxonMobil earned in the first quarter of 202615, the quarter was the war.

References
  1. ReportedExxonMobil earned $14,525 million in the second quarter of 2026 against $7,082 million a year earlier — $3.48 a share against $1.64.
    ExxonMobil Holdings Corporation and Exxon Mobil Corporation Form 10-Q for the quarter ended 30 June 2026, condensed consolidated financial statements and notes — statement of income, balance sheet, segment note, litigation and other contingencies including the Louisiana coastal settlement, and divestment activities. — Q2 2026 · publ. August 2026 · source ↗
  2. ReportedCash flow from operations was $23,555 million and free cash flow $17,236 million; the company distributed $9.4 billion, being $4.3 billion of dividends and $5.1 billion of buybacks, and raised the quarterly dividend to $1.03.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  3. ReportedUpstream lost $1,060 million of earnings from Middle East disruption impacts and gained $4,650 million from higher crude realisations.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  4. ReportedEnergy Products lost $310 million and gained $3,180 million from stronger refining margins.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  5. ReportedSpecialty Products lost $110 million and gained $270 million on higher basestock margins.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  6. ReportedOil-equivalent production fell to 4,514 thousand barrels a day from 4,630, with Asian natural gas dropping from 3,206 to 1,274 million cubic feet a day — sixty per cent.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  7. ReportedOil-equivalent production fell to 4,514 thousand barrels a day from 4,630, with Asian natural gas dropping from 3,206 to 1,274 million cubic feet a day — sixty per cent.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  8. ReportedRefinery throughput fell from 3,936 to 3,562 thousand barrels a day, with Europe down sixteen per cent and Asia Pacific twenty-eight.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  9. ReportedChemical Products sold 4,471 thousand tonnes against 5,264.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  10. ReportedEnergy Products timing effects increased earnings by $2,560 million in the quarter on favourable derivative mark-to-market impacts — more than half the segment's improvement — while on a year-to-date basis the same line reads minus $770 million.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  11. ReportedIdentified items went the other way: $1,199 million of Upstream financial reserves, $1,180 million of Energy Products impairments.
    ExxonMobil Holdings Corporation Form 10-Q for the quarter ended 30 June 2026, Management's Discussion and Analysis — the review of second quarter results, the segment earnings driver analyses for Upstream, Energy Products, Chemical Products and Specialty Products, the operational results tables for production, refinery throughput and sales volumes, the liquidity discussion, and the structural cost savings calculation. — Q2 2026 · publ. August 2026 · source ↗
  12. ReportedAdjusted earnings were $14.7 billion against reported $14.5 billion.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  13. ReportedRecord Permian production of more than 1.8 million oil-equivalent barrels a day, the highest company production in more than two decades excluding the Middle East disruptions, strong Gulf Coast utilisation, record diesel production, and a final investment decision on a 120 thousand tonne a year Proxxima expansion in Louisiana.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  14. ReportedDarren Woods described the quarter as shaped by disruption, but defined by execution.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  15. ReportedIf they revert toward the $4,183 million ExxonMobil earned in the first quarter of 2026, the quarter was the war.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
Sources
Generated September 23, 2026