Oil giant Exxon Mobil's (XOM - Free Analyst Report) second-quarter share earnings of $1.60 were above our estimate of $1.40 and nearly double the year-earlier figure of $0.81. Strength was across the board, with the oil and natural gas production, refining, and chemicals businesses all doing better both stateside and abroad. Significantly higher oil prices were a big help. Also notable was a turnaround in refining in the United States, where Exxon suffered a loss a year ago.

Good news on the production front cheered investors, as well. The company is getting a big lift from the recent startup of some large natural gas projects in Qatar. Those endeavors have more than offset a slight dip in the amount of oil pumped. Combined oil and gas production rose a healthy 8% in the quarter.

The closing of the XTO Energy acquisition was another highlight. Exxon rarely does acquisitions, preferring to develop its own properties using in-house methodologies. The last corporate purchase prior to this one was Mobil, over ten years ago, so the XTO deal can be viewed as something special. In this case, Exxon gained access to large-scale unconventional natural gas reserves in the United States. The move further pads production, but will dilute year-ahead earnings modestly.

