Page 7 - NorthAmOil Week 44 2022

NorthAmOil PERFORMANCE NorthAmOil

ExxonMobil, Chevron profits

beat expectations

GLOBAL US super-majors ExxonMobil and Chevron
have posted profits yet again thanks to high
oil and natural gas prices and post-pandemic
demand super-charged in Europe by the energy
crisis following Russia’s invasion of Ukraine.
ExxonMobil posted a record-breaking net
profit of $19.7bn, and its shares rose 3% to give
it a market value of $461bn. As the largest US oil
company, its earnings were above those achieved
in the second quarter, when they had topped
$17.9bn.
In the third quarter, the super-major reported financial performance,” said Chevron’s CEO,
a per-share profit of $4.68, which exceeded Wall Michael Wirth. He noted that the company’s
Street’s consensus view of $3.89 per share. oil and gas production in the Permian was at a
Meanwhile, rival Chevron had a third-quar- record high. “We’ve also taken important steps
ter profit of $11.2bn, its second-highest quarterly to position both our traditional and new energy
profit to date, almost double the $6.1bn from the businesses to help meet the world’s growing
same period a year ago, and higher than analyst demand for our products,” Wirth concluded.
estimates. Chevron’s output from the Permian Basin
Chevron’s per-share profit was $5.78 a share, topped 700,000 boepd, up 12% from one year
significantly ahead of Wall Street’s estimate of earlier the previous quarter, when it was 692,000
$4.86. Cash flow from operating activities was boepd.
$24.4bn. Worldwide net production was 3.03mn
“Where others pulled back in the face of boepd in third quarter 2022. International pro-
uncertainty and a historic slowdown, retreating duction decreased 3% primarily due to the end
and retrenching, this company moved forward, of concessions in Thailand and Indonesia, while
continuing to invest,” ExxonMobil’s CEO, Dar- US output rose by 4% compared to the same
ren Woods, told investors. He said that its record period a year ago, mainly in the Gulf of Mexico
profits reflect that “deep commitment” – and and the Permian Basin.
also the market’s higher prices. The company’s average sales price per barrel
ExxonMobil has shunned investment in of crude oil and natural gas liquids was $76 in the
renewables, even while its European counter- third quarter of 2022, up from $58 a year earlier.
parts have embraced the energy transition. The average sales price of natural gas was $7.05
Third-quarter results included net favourable per 1,000 cubic feet ($199.66 per 1,000 cubic
identified items of nearly $1bn associated with metres) in the third quarter of 2022, up from
the completion of the XTO Energy Canada and $3.25 in last year’s third quarter.
Romania Upstream affiliate divestments and Company executives did not talk up their
also one-time benefits from tax and other reserve profits, with their third-quarter announcements
adjustments, partly offset by impairments. coming just before US President Joe Biden again
Capital and exploration expenditures were pushed back against oil companies’ earnings,
$5.7bn in the third quarter, bringing year-to-date accusing them of war-profiteering. He added
2022 investments to $15.2bn, on track with full- that he might impose a windfall tax on energy
year guidance of $21bn to $24bn. companies.
Year-to-date earnings excluding identified “Oil companies’ record profits today are not
items were $30.7bn, an increase of $21bn versus because they’re doing something new or inno-
the first nine months of 2021 on higher crude vative. Their profits are a windfall of war – the
and natural gas realisations. Excluding impacts windfall from the brutal conflict that’s ravaging
from divestments, oil-equivalent production Ukraine and hurting tens of millions of people
grew nearly 90,000 barrels per day (bpd). Per- around the globe,” said Biden. Oil companies
mian production was at a record level – it deliv- should “invest in America by increasing produc-
ered nearly 560,000 barrels of oil equivalent per tion and refining capacity”. They should lower
day (boepd) during the quarter. (See: Major shale gasoline prices, he said.
producers starting to see signs of Permian slow- ExxonMobil’s Woods had already told ana-
down, page 4) lysts: “There has been discussion in the US
For Chevron, in the third-quarter cash flow about our industry returning some of our profits
from operations climbed to a record $15.3bn, directly to the American people. In fact, that’s
and its return on capital employed rose to 25%. exactly what we’re doing in the form of our quar-
“We delivered another quarter of strong terly dividend.”™

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