Why Investors Liked Exxon's Results But Not Chevron's

ExxonMobil (XOM) fared overmuch amended than rival Chevron (CVX) contempt record-high accumulation successful Texas' oil-and-gas-rich Permian Basin for both, arsenic nan U.S. lipid giants reported second-quarter financial results.

Shares of Chevron declined astir 3% arsenic nan institution grounded to meet statement net projections. The patient will besides relocate its office to Houston, Texas from California.

Shares of Exxon, connected nan different hand, roseate arsenic overmuch arsenic 1.5% successful early trading Friday aft nan institution topped net expectations and recorded its first quarterly profit summation successful much than a year. Shares yet succumbed to Friday's wide banal marketplace selloff, but they still outperformed nan power assemblage by much than 2 percent points.

Production Boom For Exxon

Exxon's nett net roseate 17% to $9.2 billion, aliases $2.14 per share, from nan aforesaid play a twelvemonth ago. The per-share results exceeded statement projections compiled by Visible Alpha by 10 cents.

It marked nan first year-over-year quarterly profit summation for nan patient aft net declined for 4 consecutive quarters, chiefly reflecting nan profit surge astir power producers enjoyed successful 2022 erstwhile lipid prices soared aft Russia invaded Ukraine.

The patient said its full nett production, driven by record-high accumulation successful nan Permian and Guyana, accrued 15% from nan first 4th to 574,000 oil-equivalent barrels per day. That's nan highest accumulation since Exxon and Mobil merged successful 1999.

With that increase, nan firm's profit successful its upstream U.S. accumulation business much than doubled to $2.4 cardinal from $1.1 cardinal successful nan first quarter, feeding nan company's highest second-quarter profit successful nan past decade.

In nan quarter, nan patient closed its previously announced $60 cardinal acquisition of Pioneer Natural Resources, much than doubling its Permian production. Exxon said nan acquisition contributed $500 cardinal to its net during nan quarter.

A Lot Is Happening With Chevron

Earnings continued falling astatine Chevron, and nan institution announced respective cardinal changes, including its planned move to Houston.

The company's profit fell 19% connected an adjusted ground to $4.7 billion, aliases $2.55 per share. Per-share results fell 43 cents short of expert expectations.

Whereas Exxon reaped benefits from its Pioneer purchase, Chevron remains stuck successful trying to complete a akin $53 cardinal woody to bargain Hess.

Hess has a 30% liking successful a Guyana task operated by Exxon, and Exxon has revenge an arbitration lawsuit arguing it has nan correct of first refusal to Hess' stake. The lawsuit apt won't get settled until May 2025.

In nan meantime, Chevron faces expanding unit to amended results. The latest quarter's net diminution reflected a driblet successful non-U.S. upstream accumulation profit and sharply little refinery income from nan aforesaid play a twelvemonth ago.

Exxon's Lead Widens, Chevron Makes Changes

As Exxon's shares person risen 17% this year, Chevron's shares person mislaid a small nether 1%. As nan perceived spread betwixt nan 2 grows, Chevron announced respective cardinal activity changes and a alteration of headquarters.

The move to Houston, Chevron said, meets a desire for nan patient to beryllium person to nan epicenter of nan power industry.

Over nan past fewer years, respective different California firms, including Oracle (ORCL), Tesla (TSLA), Charles Schwab (SCHW), and Hewlett Packard (HPE), person relocated to Texas aliases announced plans to do so.

In addition, Chevron executives person expressed dismay astatine stringent California ambiance regulations that galore blasted for nan state's precocious gasoline prices comparative to overmuch of nan remainder of nan U.S.