Exxon Mobil Corp. (NYSE: XOM) is showing that oil is profitable at $80 or at $100 per barrel. The oil giant reported second-quarter net income of a whopping $15.9 billion. The report came to $3.41 per share, versus estimates of $1.95 per share from Thomson Reuters. As usual, Exxon Mobil’s earnings had items in it so the “comparable” report is a bit difficult to compare.

The oil giant said that the profit outside of items was “only” $8.4 billion in the quarter. Today’s headlines were boosted by a gain of $7.5 billion from divesting activities and also from tax-related items in the report. Operating cash flow was a whopping $10.2 billion.

What is interesting is that the oil giant’s adjusted production was flat in the second quarter. Upstream earnings came in at $8.3 billion and downstream earnings came in $6.65 billion. Exxon spent some $5 billion repurchasing its own shares under its share buyback program.

Exxon Mobil and others were dealt with a plummeting price of oil during the second quarter. The good news for big oil companies, or the bad news for the consumers, is that prices bottomed out in recent weeks.

JON C. OGG

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