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Exxon reports $4.7B in earnings, plans to increase spending on key projects including Guyana

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Exxon Mobil Corporation announced on Friday estimated second-quarter 2021 earnings of $4.7 billion 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 also reported an increase in earnings of $5.8 billion over the second quarter of 2020, which it said is driven by oil and natural gas demand and best-ever quarterly chemical and lubricants contributions.

Exxon said it 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.

The oil major said portfolio improvement activities included signing an agreement for the $1.15 billion fourth-quarter sale of the SantopreneTM chemical business, affirmative funding decision for the Bacalhau development in Brazil, and additional exploration success in Guyana.

The company continued to progress its major deepwater developments in the new oil producing South American country, including the announcement of new discoveries at Uaru-2, Longtail-3, and Whiptail at the Stabroek Block. Exxon said the new discoveries increase confidence in the quality and size of the resource and supports the potential for 7 to 10 floating production, storage and offloading (FPSO) facilities in the Stabroek block.  Exploration, appraisal, and development drilling continues, with a total of six drillships now operating offshore Guyana.

The company said its high-return developments remain on schedule, with Liza Phase 2 on target for 2022 startup, Payara on schedule for 2024 startup and Yellowtail targeted for 2025 startup.

ExxonMobil’s 2021 capital program is expected to be at the lower end of the previously communicated range of $16 billion to $19 billion. Capital expenditures totaled approximately $7 billion through the first half of the year. The company’s capital allocation priorities continue to be investing in advantaged projects, strengthening the balance sheet and paying a reliable dividend.

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