(Reuters) – Exxon Mobil Corp reported second-quarter profit of $9.2 billion on Friday, beating expectations as oil prices rose and volume gains from its acquisition of shale oil company Pioneer Natural Resources this year.

Exxon reported profit of $2.14 per share, beating analysts’ expectations, with the company citing oil production and price gains that offset weakness in refining.

The results are in line with those of its competitors, BP, Shell and ConocoPhillips. In contrast, Chevron, Exxon Mobil’s main rival, reported a quarterly profit on Friday that fell short of expectations, as the American oil giant was penalized by weak refining margins.

The profit increase “was driven by record production in Guyana and the Permian,” which offset lower natural gas and fuel prices, said Kathryn Mikells, chief financial officer.

Net income rose to $9.24 billion, compared with $7.88 billion a year ago.

The top U.S. oil producer raised its 2024 production target by 13% to 4.3 million barrels of oil equivalent per day (bpd) following the Pioneer deal, Kathryn Mikells said. Exxon produced 3.74 million bpd in 2023.

“We already see a line of sight for greater synergies than anticipated when Exxon announced the transaction,” Mikells said, adding that any updates would be announced in December.

Spending increased slightly with capital expenditures of $7.03 billion, including $700 million for assets acquired from Pioneer, compared with $6.17 billion a year ago.

Exxon raised its annual capital spending forecast to $28 billion from $23 billion to $25 billion previously.

Second-quarter oil and gas production rose 15 percent from the previous quarter, to 574,000 barrels per day, including the additional contribution from Pioneer. Exxon had forecast that Pioneer would increase production by 500,000 to 550,000 barrels per day during the quarter.

(Written by Sabrina Valle, Pauline Foret, edited by Augustin Turpin)

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