Chevron and Exxon Mobil earnings surge in Q1 2022

Q1 earnings reports from 2 major US oil companies - Chevron and Exxon Mobil - were released today ahead of the Wall Street session open. Both companies reported massive year-over-year jumps in earnings but neither of them managed to beat market expectations. Let's take a quick look at financial reports from the US oil sector.

Chevron - highest EPS in a decade

Chevron (CVX.US) reported higher Q1 revenue, which was also higher than expected. While adjusted EPS missed market estimates, it jumped over 270% YoY and reached the highest level since 2012! While higher oil prices allowed the company to book massive profits, they were not high enough to encourage production boost - the company's global daily production was 2% YoY lower. While global production was lower year-over-year, the company's output at Permian Basin jumped to a record 692k bpd and Chevron expects it to increase to 700-750k bpd in the full-2022. Company plans to invest heavily this year and expects CapEx and acquisitions to be 50% higher compared to 2021 levels.

Highlights

• Revenue: $54.37 billion vs $50.26 billion expected

• Adjusted EPS: $3.36 vs $3.44 expected ($0.90 in Q1 2021)

• Daily Production: 3.060 million barrels of oil equivalent vs 3.063 million barrels expected (-2% YoY)

Current pre-market quotes point to an around 2% lower opening of today's session for Chevron stock (CVX.US). This would still be above a crucial near-term support - the lower limit of market geometry at $154.65. Having said that, the uptrend does not seem to be in danger. At least not yet. However, a point to note is that the company's share price has recently decoupled from WTI prices (light blue overlay). Source: xStation5

Exxon Mobil - $3.4 billion writedown on Sakhalin-1 exit but buybacks increased

Exxon Mobil (XOM.US) reported higher Q1 revenue, which was also higher than expected. Adjusted EPS missed market estimates but was 218% YoY higher. However, just as it was the case with Chevron, Exxon Mobil also saw lower production year-over-year in Q1 2022. Earnings were negatively impacted by the $3.4 billion charge the company took on its stake in the Sakhalin-1 project as it plans to withdraw from Russia. Nevertheless, Exxon Mobil seems to be positive about the future and expects production at the Permian Basin to increase 25% in 2022. Company decided to triple the current share buyback programme and now plans to buy $30 billion worth of own shares through 2023.

Highlights

• Revenue: $90.5 billion vs $89.57 billion expected

• Adjusted EPS: $2.07 vs $2.24 expected ($0.65 in Q1 2021)

• Daily Production: 3.675 million barrels of oil equivalent vs 3.804 million barrels expected (-3% YoY)

Exxon Mobil (XOM.US) is trading around 1% lower in pre-market following release of Q1 earnings. Stock bounced off the 50-session moving average (green line) and short-term upward trendline at the beginning of this week and moved towards recent highs later on. Resistance zone ranging below $89 per share is a key to watch for now. Source: xStation5