After production dropped the most in at least a decade, Exxon Mobil posted a smaller increase in second-quarter profit than analysts had estimated.

The Houston Chronicle reports that, “net income rose 14 percent to $11.7 billion, or $2.22 a share, from $10.3 billion, or $1.83, a year earlier, the Irving-based company said today in a statement. Per-share profit excluding costs related to a ruling in the Valdez oil-spill case was 26 cents lower than the average of 12 analysts estimates compiled by Bloomberg.”

Nonetheless, it was the largest quarterly profit ever by a U.S. company, but it didn’t mean everything was rosy at the world’s largest oil company. Production tumbled 7.8 percent because its assets were seized in Venezuela, Nigerian workers went on strike and record prices triggered contract clauses that give oil-rich governments a larger share of output. For the first time, U.S. crude futures rose above $140 a barrel, which allowed Exxon Mobil to achieve the highest profit ever for a U.S. company without one-time gains.

Rex Tillerson, the CEO of Exxon Mobil, is spending $52 million each day to search for new fields after reserves fell in 2007 by the most in at least a decade. This year, Exxon Mobil plans to start 12 projects that will pump the equivalent of 411,000 barrels of crude a day, more than the daily output of Prudhoe Bay, the largest U.S. oil field.”

To read the entire article from the Houston Chronicle, link here:

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