In a telltale sign that the oil industry has regained its footing after a two-year price spiral, Wall Street's profit expectations were easily beaten by Chevron Corp and Exxon Mobil Corp as they were helped by rising crude prices to do so.
Even as oil prices CLc1 LCOc1 have climbed more than 50 percent since early 2016, the results highlighted the slowly improving dynamics for the energy industry even while cost cuts and asset sales provided a boost to both companies.
For Exxon, where quarterly profit more than doubled to $4.01 billion, the results were especially strong.
By earning more than it spent and thereby touching a milestone that Wall Street had long sought, Chevron swung to a quarterly profit and turned cash flow positive.
While shares of Chevron were up 1.3 percent, shares of Exxon rose 1 percent.
And now the investors look at two other energy giants as they are set to report quarterly results next week – the energy peers of Chevron and Exxonn - BP Plc and Royal Dutch Shell Plc.
There is however an uncertainty over whether the Organization of the Petroleum Exporting Countries will extend a production cut when it meets next month in Vienna which is looming over the large international oil companies. Oil prices would likely drop, pushing the sector back into recession, should the cut not be continued.
With both deciding that the low-cost fields were an easy opportunity to boost profit, Chevron and Exxon expanded production in their American shale portfolios during the quarter.
Much of its 2017 capital budget has been devoted to shale projects by Chevron which is the second largest leaseholder in the Permian Basin that is the largest American oilfield.
Chief Executive Officer John Watson told Reuters earlier this month the Permian was vital to Chevron's growth. In a deal that was worth up to $6.6 billion earlier this year, Exxon doubled its acreage holdings in the Permian Basin of West Texas. The importance of Exxon to continue to grow in the oil-rich region of the Permian Basin of West Texas was highlighted by the deal which was the largest oil industry deal in the first quarter/.
Liquefied natural gas operations were expanded by both companies in Asia. While Exxon bought InterOil in a $2.5 billion bid to expand in Papua New Guinea, Chevron brought a third processing facility online at its Gorgon LNG project in Australia.
Exxon also bought a 25 percent stake in a Mozambique gas field last month in a deal worth up to $2.8 billion.
(Source:www.reuters.com)
Even as oil prices CLc1 LCOc1 have climbed more than 50 percent since early 2016, the results highlighted the slowly improving dynamics for the energy industry even while cost cuts and asset sales provided a boost to both companies.
For Exxon, where quarterly profit more than doubled to $4.01 billion, the results were especially strong.
By earning more than it spent and thereby touching a milestone that Wall Street had long sought, Chevron swung to a quarterly profit and turned cash flow positive.
While shares of Chevron were up 1.3 percent, shares of Exxon rose 1 percent.
And now the investors look at two other energy giants as they are set to report quarterly results next week – the energy peers of Chevron and Exxonn - BP Plc and Royal Dutch Shell Plc.
There is however an uncertainty over whether the Organization of the Petroleum Exporting Countries will extend a production cut when it meets next month in Vienna which is looming over the large international oil companies. Oil prices would likely drop, pushing the sector back into recession, should the cut not be continued.
With both deciding that the low-cost fields were an easy opportunity to boost profit, Chevron and Exxon expanded production in their American shale portfolios during the quarter.
Much of its 2017 capital budget has been devoted to shale projects by Chevron which is the second largest leaseholder in the Permian Basin that is the largest American oilfield.
Chief Executive Officer John Watson told Reuters earlier this month the Permian was vital to Chevron's growth. In a deal that was worth up to $6.6 billion earlier this year, Exxon doubled its acreage holdings in the Permian Basin of West Texas. The importance of Exxon to continue to grow in the oil-rich region of the Permian Basin of West Texas was highlighted by the deal which was the largest oil industry deal in the first quarter/.
Liquefied natural gas operations were expanded by both companies in Asia. While Exxon bought InterOil in a $2.5 billion bid to expand in Papua New Guinea, Chevron brought a third processing facility online at its Gorgon LNG project in Australia.
Exxon also bought a 25 percent stake in a Mozambique gas field last month in a deal worth up to $2.8 billion.
(Source:www.reuters.com)
