Oil giants Chevron (CVX.US) and Exxon Mobil (XOM.US) today presented excellent reports for the third quarter of the year. The results exceeded analysts' already very optimistic expectations. The stocks of both companies gained nearly 3% in pre-opening trade and are pushing to historic highs:
Exxon Mobil
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appRevenues: $112.07 billion vs. $102.96 billion forecasts
Adjusted earnings per share (EPS): $4.45 vs. $3.89 forecasts
Net income: $19.6 billion vs. $6.7 billion in Q3 2021
Cash flow (cash flow): $27.1 billion
Costs: $86.6 billion (up 35% y/y)
The company increased revenue from upstream (exploration and production) and downstream (production and supply) operations. Source: ExxonMobil
- The company's shareholders will receive a dividend of $0.91 per share on December 9, in the fourth quarter of FY 2022
Chevron
Revenues: $66.64 vs. $61.44 forecasts
Adjusted earnings per share (EPS): $5.56 vs. $4.94 forecasts
Net income: $11.2 billion vs. $11.6 billion in Q2
Downstream revenue: $2.53 billion vs. $1.95 billion forecasts
Upstream revenue: $9.31 billion vs. $8.13 billion forecasts
EPS year-over-year: $5.78 vs. $3.19 in Q3 2021
Cash flow: $15.3 billion
The average increase in gasoline prices is a major concern for Democrats ahead of the midterms elections for Congress. In the first half of October this year, the scale of the increase exceeded 70% in most US states compared to October 2020. Gasoline became most expensive in the states of Michigan, Oregon and Nevada. Source: GasBuddy, Cook Political Report
ExxonMobil (XOM.US) and Chevron (CVX.US) stock charts, W1 interval. Oil company stocks are highly correlated with oil prices. Higher GDP readings in the economies 'dismiss' to some extent the still lively fears around a global recession. The vision of an economic slowdown is limiting the growth of oil prices. Nevertheless, 'black gold' is already trading near $100, the latest DoE report indicated higher oil reserves and a surprising decline in gasoline and distillate stocks. OPEC+ production cuts may 'help' oil overcome the $100 resistance. The RSI relative strength index indicates levels at 64 points. These levels are far from the RSI's historical peaks, although both companies are trading at ATH. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
