Exxon Mobil Corp. (NYSE: XOM) reported second-quarter 2014 results before markets opened Thursday morning. The integrated oil and gas company posted diluted earnings per share (EPS) of $2.05 on revenues of $111.65 billion. In the same period a year ago, the company reported EPS of $1.55 on revenues of $106.67 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.86 on revenues of $108.38 billion.

Exxon’s worldwide production of both oil and natural gas was lower year-over-year for the quarter. Global liquids production slipped from 2.18 million barrels a day in the second quarter of 2013 to 2.05 million barrels a day.

Worldwide natural gas production fell from 11.35 billion cubic feet a day to 10.75 billion cubic feet per day. In barrels of oil equivalent, production fell from 4.07 million barrels a day to 3.84 million barrels a day.

Exxon did not reveal its average realized prices per barrel, but the company did say that earnings from its upstream operations rose $1.58 billion year-over-year to $7.88 billion on higher price realizations.

Downstream earnings (refining and marketing) rose by $315 million to $711 million, although weaker refining margins cost earnings $330 million. Refined product sales rose to 5.84 million barrels a day, up 76,000 barrels compared with a year ago.

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The company’s CEO said:

ExxonMobil’s financial results were achieved through strong operational performance and portfolio management. … Through the first half of 2014, the Corporation distributed $11.7 billion to shareholders through dividends and share purchases to reduce shares outstanding.

Capital spending in the first half of 2014 was down 17%, or $18.2 billion, compared with the first half of 2013. Cutting capex to fund dividends and buybacks worked pretty well for the big mining companies, and Exxon is about to see if the strategy also works in the oil and gas business.

Exxon also reported “proceeds associated with asset sales of $2.6 billion” during the quarter, which helped fatten the reported profit.

The company has said it is forging ahead with its plans to begin exploring off the northern coast of Russia, regardless of international sanctions against the country that are getting more stringent every day, it seems.

Exxon’s shares were trading down about 1.7% early Thursday, at $101.50 in a 52-week range of $84.79 to $104.76. Thomson Reuters had a consensus analyst price target of around $102.60 before today’s report.

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