Oil and gas giant Exxon Mobil Corp. posted a 41% rise in its second quarter profit to $10.68 billion, or $2.18 a share, up from $7.56 billion or $1.61 a share a year ago.The strong earnings however fell short of Wall Street’s $2.33 estimates.
Earnings were driven up by higher oil prices. Its upstream earnings which come from its exploration and production surged 60% to $8.5 billion, while downstream revenues which derive from refining and marketing operations jumped 11% to $1.35 billion. The company’s dividend increased 7% to $0.47 compared to a year ago.
It’s production increased on the back of its acquisition of natural-gas producer XTO Energy Inc. last year. Its production jumped 10% to 4.4 million barrels of oil equivalent.
Meanwhile Exxon Mobil is still facing heat after its Silvertip pipeline burst earlier this month, spilling approximately 1,000 barrels of oil which crossed over to the Yellowstone River in Montana. Now a U.S. House bill may require companies to bury pipelines deeper and is hiking up its fines for safety violations, according to Reuters. The clean-up is still ongoing.
The stock is currently off 1.36%.