In a notable financial disclosure, Exxon Mobil Corporation reported robust second-quarter results that surpassed analyst expectations. The energy giant announced earnings of $2.14 per share for the June quarter, an increase from $1.94 reported in the same period last year, effectively beating the Capital IQ-consensus estimate of $2.03.
Additionally, Exxon's total revenue soared to $93.06 billion, significantly up from $82.91 billion, exceeding Wall Street’s projection of $89.68 billion. A substantial portion of Exxon's impressive earnings can be attributed to its acquisition of Pioneer Natural Resources, record production in Guyana, contributions from its legacy Permian Basin operations, and prudent cost-management strategies.
In a recent report released in July 2023, the company noted an impressive $4.58 billion in upstream earnings for the second quarter of the year, marking a sequential increase of $1.4 billion to achieve a total of $7.07 billion. Production metrics also highlighted Exxon's success, with output reaching 4.36 million oil-equivalent barrels per day, outpacing the analysts' forecast of 4.18 million barrels and demonstrating a notable improvement from last year’s comparable figure of 3.61 million barrels per day. However, not all segments performed equally well.
Earnings from Exxon's energy products segment dipped to $946 million, a decrease from $1.38 billion in the prior quarter. This decline was largely influenced by subdued refining margins, as supply exceeded the robust demand recorded during this period. The chemical and specialty products division also saw sequential earnings declines. Chief Executive Darren Woods commented on Exxon's performance, stating, "We delivered our second-highest (second-quarter) earnings of the past decade as we continue to improve the fundamental earnings power of the company." On the other hand, Chevron Corporation reported mixed results that fell below market expectations.
The company’s adjusted earnings per share for the second quarter decreased to $2.55 compared to $3.08 in the previous year, trailing behind the consensus estimate of $3. In contrast, Chevron's total revenue rose to $51.18 billion, up from $48.9 billion a year prior, surpassing market estimates of $50.73 billion. Chevron experienced an uptick in global oil-equivalent production, which climbed to 3.29 million barrels per day, up from 2.96 million barrels year-over-year.
This also surpassed the analysts' consensus estimate of 3.22 million barrels per day. Notably, US upstream production rose by 353,000 barrels year-over-year, reaching 1.57 million barrels per day, significantly aided by the integration of PDC Energy and record performance in the Permian Basin. Nonetheless, international output saw a decline, dropping to 1.72 million barrels from 1.74 million due to operational downtimes in Australia and Chevron’s exit from Myanmar. In terms of upstream segment earnings, Chevron reported $4.47 billion, down from $4.94 billion the previous year.
While growth in US operations supported overall production figures, it was not enough to offset declines in international performance driven by reduced sales volumes, unfavorable foreign-currency movements, and lower realizations for natural gas. Additionally, in Chevron’s downstream segment, earnings fell to $597 million from $1.51 billion, primarily impacted by reduced margins on refined product sales both domestically and on the global stage. Chevron CEO Mike Wirth remarked, "This quarter, we delivered strong production, enhanced our global exploration portfolio, and extended our track record of consistent shareholder returns with over $50 billion in distributions over the last two years.
Despite recent operational downtimes and softer margins, we remain poised to deliver significant long-term earnings and cash flow growth." The stock market reflected these outcomes, with Exxon Mobil priced at $116.35, experiencing a slight change of -0.60 or -0.51 percent..