Exxon Mobil (XON) easily beat Q3 earnings forecasts, while Chevron (CVX) also reported strong results and a flood of cash as output jumped.
X
Exxon Earnings
Estimates: Wall Street expects Exxon earnings to rise 30% to $1.21 per share with revenue up 9.6% to $72.46 billion.
Results: EPS of $1.46 on revenue of $76.6 billion. Upstream income soared 170% to $4.23 billion. Downstream income climbed 7% to $1.64 billion. Cash flow from operations jumped 50% to $12.6 billion.
Oil-equivalent production fell 2.4% from a year ago to 3.8 million barrels per day, but it rose 3.8% vs. Q2. Exxon ramped up to 38 rigs in the Permian's Midland and Delaware basins up from 27 in Q1.
"We are seeing the benefits of integration as we capture value from advantaged feedstock from the Permian and Western Canada for our North American refineries," said Chairman and CEO Darren Woods in a statement.
"The logistical network we've established provides reliable connectivity between Upstream production and manufacturing facilities. Operational performance improved significantly versus the second quarter with lower levels of scheduled maintenance and reliability levels in line with our expectations."
Stock: Exxon stock rose 1.6% at 81.95 on the stock market today, nearly retaking their 50-day average.
Chevron Earnings
Estimates: Analysts expect Chevron earnings to double to $2.06 per share with revenue up 18% to $42.79 billion.
Results: EPS of $2.11 on revenue of $44 billion. Oil-equivalent production rose 9% from a year ago to 2.96 million barrels per day, which the company said was its highest ever, led by the Wheatstone play in Australia and the Permian Basin in the U.S.
Upstream income shot up 591% to $3.38 billion, while downstream income dropped 24% to $1.37 billion. Adjusted operating cash flow leapt 58% to $23.3 billion.
Stock: Chevron stock jumped 3.2% to 114.73.
Chevron and Exxon earnings follow results from their oil major rivals earlier this week. BP (BP) reported earnings doubled and backed its commitment to capital discipline, despite a surge in cash from high oil prices.
In fact, it has so much cash, the company will pay for its $11 billion acquisition of BHP Billiton's (BHP) U.S. oil and gas assets entirely in cash instead of using shares to pay about half the buyout.
BP also reiterated its commitment to growing shareholder returns after increasing its dividend in July.
On Thursday, Royal Dutch Shell (RDSA) also reported a surge in profit said it will complete the second tranche of a its $25 billion repurchase program by the end of January.
But the outlook for Chevron and Exxon earnings has been clouded by the recent drop in oil prices. After starting October near four-year highs, benchmark U.S. crude fell nearly 11% during the month, the worst monthly decline since July 2016, and began November with another drop. Brent crude fell 9% last month.
YOU MIGHT BE INTERESTED IN:
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
The post Chevron Crushes Exxon On Cash Flow As Production Surges appeared first on Investor's Business Daily.
http://feedproxy.google.com/~r/BusinessRss/~3/1YwP6m2qf6Q/
No comments:
Post a Comment