Earnings at Exxon and Chevron Rebound to Earth

Due in part to weak natural gas prices and refining margins, Exxon Mobil and Chevron reported decreased profits as their streak of record-breaking performance comes to an end.

The oil and gas behemoths managed to amass $13.7 billion between them, securing their position as the nation’s most lucrative corporations. However, by their recent standards, the first-quarter results were somewhat unimpressive.

Exxon announced $8.2 billion in first-quarter earnings on Friday, a 28% decrease from the same period last year due to a decline in natural gas prices and oil-refining margins from their post-pandemic highs. Based on FactSet, Exxon underperformed Wall Street projections by approximately 6%. Even with the lower results, it was still the second highest first-quarter total in the previous ten years.

Chevron reported quarterly earnings of $5.5 billion, down around 16% from the same period last year but about 2% higher than analysts’ expectations.

Exxon Mobil and Chevron have experienced an unparalleled time of profitability in their lengthy histories over the last two years, riding the wave of rising oil prices to record earnings and dividends to shareholders. The two businesses are getting used to the new normal, even if they are still at odds over the huge discovery in Guyana.

Since Russia began its invasion of Ukraine, the supply of oil and gas has mainly stabilized. However, some analysts and investors believe that if the advantages of external market forces continue to fade, businesses like Exxon, the biggest oil refiner in the west, will need to demonstrate that they can maintain low costs while increasing output.