ExxonMobil and Chevron top expectations amid shale ramp-up

Rise comes as Chevron reports the highest production levels in its history

ExxonMobil and Chevron both beat analyst expectations with their second-quarter results as the US oil majors ramped up production in the Permian Basin, even amid fears of a deceleration in the US shale boom.

Both companies on Friday reported increases in production in the basin, which is at the heart of the boom, with Exxon posting an overall 7 per cent rise from the year ago period to 3.9 million barrels of oil equivalent a day and Chevron’s rising 9 per cent to 3.08 million barrels a day.

Chevron’s earnings for the quarter were $4.3 billion (€3.9 billion) or $2.27 per share, up 27 per cent from last year and ahead of the $1.78 per share expected by analysts in a Bloomberg poll.

The rise came as Chevron reported the highest production levels in its history, driven by increased output in the Permian and at Wheatstone in Australia, alongside a boost from the $740 million termination fee after a bid to acquire rival Anadarko fell through. Revenues were down 8 per cent at $38.8 billion.


Tight fuel margins

Exxon on the other hand reported a 21 per cent drop in earnings to $3.1 billion, or 73 cents a share in the three months to the end of June, but this was ahead of the median forecast for 66 cents a share among analysts in a poll conducted by Refinitiv.

The company pointed to tight fuel margins and unscheduled shutdowns at a number of its refineries. Capital and exploration expenditures rose 22 per cent from a year ago to $8.1 billion, reflecting its investments in the Permian. Revenues fell 6 per cent year-on-year to $69.09 billion, which was nearly $4 billion ahead of Wall Street forecasts.

Exxon shares were up 1.3 per cent in pre market trading, while Chevron’s gained 0.8 per cent. – Copyright The Financial Times Limited 2019