The company posted record earnings of $39.5 billion in 2006 and is just under pace to match that mark this year.
The company's production dipped 1% on an oil equivalent basis from last year due to field decline and lower European demand for natural gas.
Net income in the second quarter decreased to $10.26 billion, or $1.83 a share, from $10.36 billion, or $1.72 a share, last year. Earnings per share rose because the number of Exxon's outstanding shares dropped nearly 7% through the company's aggressive buyback program.
The average forecast of Wall Street analysts was $1.96 a share, according to Reuters Estimates.
"Europe had a warm winter, so European natural gas prices were down in the first half for Exxon, Royal Dutch Shell and other companies that sell into that market," said McDep Associates analyst Kurt Wulff.
"European natural gas has been one of their biggest areas of profits over the years, but the market's working in the other direction right now," he said.
Wulff noted that benchmark gas prices in Europe have turned upwards in recent weeks.
Refining Still Strong
Earnings from its exploration and production segment fell over 16% to $5.95 billion.
The company's European natural gas prices fell nearly 14% to $6.67 per thousand cubic feet, while its price for other natural gas sales outside the U.S. fell 10 percent to $6 per thousand cubic feet.