ExxonMobil and Chevron top Q3 estimates on higher prices and strong output
ExxonMobil and Chevron both reported better than expected quarterly results Friday as oil majors benefited from higher prices and record production.
The oil giants benefited from geopolitical disruptions in Iran and Ukraine that drove up fuel costs, along with strong production in Guyana and the Permian Basin. Exxon's U.S. Gulf Coast refineries operated at 100% capacity, with diesel production at the second-highest on record.
Diesel prices have surged 71% since last year to about $6.32 per gallon, while regular gasoline is up approximately 38% over the same period, according to AAA.
Exceeding Expectations
ExxonMobil's net income more than doubled to $3.72 per share in Q3, with adjusted profit of $4.23 per share beating analyst estimates of $4.12. Revenue rose 33% to $113.16 billion.
The company raised its quarterly dividend to $1.07 and announced a $20 billion stock buyback plan.
Chevron's Performance
Chevron reported earnings of $9.9 billion, or $5.06 per share, with revenue surging 36% to $67.8 billion, also beating estimates. The company set production records at its Eastern Mediterranean and Australian assets.
Chevron recently announced a $7 billion investment in Venezuela over the next five years and signed agreements to reduce Bakken midstream costs by about 50% following its acquisition of Hess Corp.
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