Houston, Texas – Two major oil companies, Exxon Mobil Corp. and Chevron Corp., recently reported underwhelming first-quarter performances despite significant production gains in key oil projects in Guyana and the Permian Basin.
Exxon’s stock dropped by as much as 3.5% while Chevron’s fell by 0.7% on Friday, even as crude oil prices increased. Exxon’s adjusted per-share profit fell short by 13 cents due to higher costs related to refinery maintenance and various accounting charges. On the other hand, Chevron exceeded expected capital spending, resulting in free cash flow falling $900 million below expectations.
Investor sentiment has recently shifted towards favoring oil-production growth, given concerns about global supply levels, which have been supporting crude oil prices. Despite the challenges faced by the two oil giants, they continue to see growth in production within their key projects.
Exxon reported strong cash flow from operations of $14.7 billion, surpassing estimates by $1 billion, largely due to increased crude oil production in Guyana. The company’s third development in Guyana, Payara, began output ahead of schedule, further boosting daily supplies by 220,000 barrels.
Chevron, on the other hand, saw its Permian Basin output decline slightly during the period, but its adjusted first-quarter profit was slightly higher than analyst estimates. CEO Mike Wirth expressed optimism about production rebounding in the second half of the year.
The ongoing dispute between Exxon and Chevron over the control of certain assets continues, with arbitration proceedings at an early stage. Despite these challenges, both companies remain focused on maximizing production and navigating the evolving oil market landscape.
In conclusion, while Exxon and Chevron faced setbacks in the first quarter, their performance in key projects such as Guyana and the Permian Basin underscores their commitment to growth and adaptation in a changing industry environment. Both companies are working towards overcoming challenges and optimizing operations to ensure long-term success and stability in the oil market.