ExxonMobil ( XOM) reported another staggeringly profitable quarter Thursday, saying it earned $10.4 billion in the three months ended June 30. Net income came out to $1.72 a share, boosted by a big repurchase in the quarter. Analysts had been forecasting earnings of $1.64 a share. A year ago, Exxon earned $7.6 billion, or $1.20 a share. Revenue rose to $99 billion from $88.5 billion a year ago. "Higher crude oil and natural gas realizations and improved refining margins were partly offset by lower marketing margins," the company said. Earnings in Exxon's "upstream" exploration and production segment were $7.13 billion, up from $4.91 billion a year ago. Production rose 6% from a year ago and the price of crude continued to surge. In the "downstream" refining and marketing segment, earnings rose to $2.49 billion from $2.22 billion. Downstream, "the improved results reflect stronger worldwide refining margins, which were partly offset by weaker marketing margins and lower refining throughput." ExxonMobil spent $4.9 billion on capital and exploration projects in the quarter, an increase of 8% vs. 2005. "As a result of additional upstream opportunities, we now expect full-year capital spending to total $20 billion. In the second quarter of 2006, the results of the company's continuing long-term investment program yielded an additional 243,000 oil-equivalent barrels per day of production, a 6% increase over the second quarter of 2005. Exxon said it spent $7.9 billion on dividends and share purchases in the quarter, up 48% or $2.6 billion. "As a consequence of the continued strengthening of our financial position, share purchases to reduce shares outstanding will be increased to $7.0 billion in the third quarter. Shares outstanding have been reduced by over 1 billion shares since the ExxonMobil merger in 1999."