Exxon Mobil (XOM) and Chevron (CVX) Shares Gain After Q2 Earnings Beat

Both Exxon (NYSE: XOM) and Chevron (NYSE: CVX) reported second-quarter results that beat the average analyst estimate.

Exxon reported an adjusted EPS of $4.14 to top the analyst consensus of $3.98. The company also reiterated its Capex guidance of $21 billion to 24 billion.

“We now expect price-driven entitlements, curtailments in Russia, and divestments in aggregate to reduce our production by about 100,000 barrels a day in the third and fourth quarters – similar to the impact we saw in the second quarter,” XOM added.

Chevron reported an even bigger beat as its adjusted EPS came in at $5.82 compared to the estimate of $4.96. Chevron said it recorded $13.8 billion in cash flow from operations while foreign currency effects increased earnings by $668 million.

“Second quarter financial performance improved as we delivered a return on capital employed of 26 percent,” CEO Michael Wirth said in a press release.

Chevron also increased its annual share repurchase guidance range to $15 billion.

BMO analyst Phillip Jungwirth said CVX delivered “strong” results.

“We view Chevron's 2Q22 results as positive with EPS and CFO beating consensus, with downstream driving the outperformance, although upstream results were also strong. The increased buyback pace to $15Bn from $10Bn is a positive surprise, while the balance sheet continues to strengthen. We also view the TCO update as positive with progress construction nearing completion, project costs unchanged, and start-up expected in 2H23,” the analyst said in a client note.

On the other hand, Cowen analyst Jason Gabelman said Exxon delivered “stronger-than-forecast” results driven by international gas realizations.

“We suspect during the call there will be focus on criteria under which XOM would increase its buyback,” the analyst added.

By Senad Karaahmetovic

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