has announced estimated second-quarter 2021 earnings of $4.7 billion, or $1.10 per share assuming dilution, compared with a loss of $1.1 billion in the second quarter of 2020. Second-quarter capital and exploration expenditures were $3.8 billion, bringing the first half of 2021 to $6.9 billion, which is consistent with planned lower activity in the first half of the year. The company anticipates higher second-half planned spending on key projects, including Guyana, Brazil, Permian and in Chemical, with full-year spending towards the lower end of the guidance range of $16 billion to $19 billion.
Second Quarter 2021 Results and Management Perspectives
- Earnings increased $5.8 billion over the second quarter of 2020, driven by oil and natural gas demand and best-ever quarterly chemical and lubricants contributions
- Cash flow from operating activities of $9.7 billion funded the dividend, capital investments and debt reduction
- Low Carbon Solutions business advanced multiple CCS opportunities and low-emission fuels initiatives
- Portfolio improvement activities included signing an agreement for the $1.15 billion fourth-quarter sale of the Santoprene chemical business, affirmative funding decision for the Bacalhau development in Brazil, and additional exploration success in Guyana
Oil-equivalent production in the second quarter was 3.6 million barrels per day, down 2% from the second quarter of 2020, driven by increased maintenance activity. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production increased 3%, including growth in the Permian and Guyana.
‘Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our products,’ said Darren Woods, chairman and chief executive officer.
‘We’re realizing significant benefits from an improved cost structure, solid operating performance and low-cost-of-supply investments that, together, are generating attractive returns and strong cash flow to fund our capital program, pay the dividend and reduce debt. This was particularly true for our Chemical business that delivered their best quarter in company history. In our efforts to support society’s energy transition goals, our Low Carbon Solutions business made progress in identifying new opportunities and in establishing new partnerships in carbon capture and storage, hydrogen and low-emission fuels.’
