Mexico’s state oil and gas giant Petróleos Mexicanos (Pemex) is showing how serious it is about producing more oil and natural gas, even if it means increasing amounts of government help.

Natural gas production was 4.051 Bcf/d in the second quarter, up 199 MMcf/d compared to the same period last year. Liquids production was the highest since 2018 at 1.882 million b/d, up 126,000 b/d year/year.

But much of the questions executives faced during the company’s second quarter earnings call revolved around Pemex’s financial woes and the role of the government – in essence, taxpayers – in ensuring continued production stability.

Pemex produces about 95% of all oil and gas output in Mexico.

Last week, Pemex said it received 65 billion pesos or around $4 billion from the...