Rival oil giants Exxon Mobil (XOM) – Get a free report and Chevron (CLC) – Get a free report reported mixed results before the bell rang on Friday, October 27.
Exxon, just several weeks after announcing a nearly $60 billion deal to merge with Pioneer Natural Resources, reported adjusted earnings of $2.27 per share, missing Street expectations of $2.37. The company’s net income fell to $9.07 in the quarter, well below the $19.66 billion it reported last year.
Exxon’s third-quarter revenue of $90.76 billion fell about 19% and fell short of analyst expectations of $93.41 billion.
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CEO Darren Woods said in a statement that the merger with Pioneer will help the company meet demand with “lower carbon intensity.”
“We have delivered another quarter of strong operating performance, earnings and cash flows, adding nearly 80,000 net barrels of oil equivalent per day to support global supply,” Woods said. “The organization’s relentless focus on safety, environment and value is paying off: driving record refining yields, delivering large projects with first-quintile costs and schedules, and exceeding planned structural cost savings while the intensity of emissions and the impact on the environment are reduced”.
Meanwhile, Chevron reported earnings of $3.05 per share, missing Street expectations of $3.33 and well below the $5.56 per share the company reported in the same period a year earlier. But the company’s revenue of $54.08 billion, down about 19% year over year, comfortably beat Street expectations of $53 billion.
The report comes days after Chevron announced an agreement to acquire Hess, a move the company said will “strengthen Chevron’s long-term performance.” Chevron also completed its acquisition of PDC Energy during the quarter.
“Chevron is delivering strong financial results while investing to profitably grow our new and traditional energy businesses to generate superior shareholder value,” CEO Mike Wirth said in a statement.
“We delivered another quarter of strong financial results and strong cash returns to shareholders,” he added.
Chevron shares, which closed down 0.72% in the previous session, fell more than 2% in pre-market trading.
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