ExxonMobil Fires Up Record Quarter

Cash is flowing freely at the world's largest energy company.

ExxonMobil (XOM Quote) posted its highest quarterly profit ever on Thursday as the company continues to benefit from the long run-up in energy prices. The supermajor posted second-quarter profit growth of 39% to $5.79 billion, or 88 cents a share, matching the consensus estimate. Revenue surged 24% to $70.7 billion.

The company saw production earnings rocket 36% on higher energy prices. Meanwhile, refinery and chemical profits soared to their highest levels in years.

"Second-quarter earnings, excluding accounting changes and special items, were a record and improved in all parts of the business," said Chairman Lee Raymond.

Following the report, shares of ExxonMobil inched up 26 cents to $46.07.

News of ExxonMobil's record profits came just a day after oil futures touched a fresh peak of $43.05 a barrel. Concerns about a possible supply disruption in Russia -- which ranks as the second-largest oil exporter in the world -- triggered the latest spike. There, oil giant Yukos is battling with the Russian government over a $3.4 billion tax debt and skating dangerously close to bankruptcy.

Yukos' latest setback came this week after Russian officials threatened to slash the company's oil production in a move that would further tighten worldwide supplies. But The Wall Street Journal reported on Thursday that Russia had lifted a freeze -- set to halt production within days -- for three Yukos subsidiaries.

Meanwhile, at least one energy analyst downplayed the supply concerns when talking with TheStreet.com this week.

"Talk to ExxonMobil," instructed Oppenheimer analyst Fadel Gheit. "There is no supply shortage. But the perception is that there could be a supply shortage."