U.S. oil giants Exxon Mobil and Chevron reported stronger-than-expected profits for the third quarter, benefiting from record oil production levels that offset declines in fuel margins. Here are the key highlights:
Profit Performance: Both companies outperformed their European counterparts, with Exxon’s profit at $1.92 per share, surpassing Wall Street’s expectations by four cents, and Chevron’s adjusted income of $2.51 per share exceeding estimates of $2.42.
Record Production: Exxon achieved a record output of 4.6 million barrels of oil equivalent per day (boepd), marking a 24% increase from the previous year. This growth was bolstered by its $60 billion acquisition of Pioneer Natural Resources and the purchase of Denbury.
Chevron’s Gains: Chevron reported a 7% increase in production to 3.36 million boepd, primarily driven by its U.S. shale operations, which reached a record 1.61 million boepd. The company is expanding its drilling activities in the Permian Basin and plans to initiate production expansion in Kazakhstan.
Challenges Ahead: Despite their strong performance, both companies face potential challenges from uncertain demand, particularly from China, the world’s top oil importer. Additionally, OPEC may consider lifting production curbs next month, which could impact prices.
Comparative Declines: Year-over-year profits for both companies declined due to weak global refining margins, although the decreases were less severe than those faced by European firms. BP reported a 30% drop in profits, while TotalEnergies saw a 37% decline in adjusted net income.
Market Reaction: Following the earnings reports, Chevron’s shares rose by 3.1% to $153.41, while Exxon’s stock remained relatively stable at $116.77.
Future Outlook: Exxon remains committed to growth, with finance chief Kathryn Mikells stating, “We see tremendous opportunities to invest in profitable growth in both our existing and new businesses.” Chevron anticipates reaching a production milestone of 1 million boepd in the Permian Basin next year.