Exxon, Chevron earnings surge on high oil, gas prices
US inflation is a ‘crisis’: Expert
The Bear Traps Report founder and editor Larry McDonald weighs in on the March PCE price index and inflation.
ExxonMobil and Chevron saw sales surge during their respective first quarters of 2022 as oil and gas prices soared amid record high inflation and the ongoing conflict between Russia and Ukraine.
US CRUDE OIL ON TRACK FOR FIVE STRAIGHT MONTHS OF GAINS
|XOM||EXXON MOBIL CORP.||87.20||+2.56||+3.02%|
Exxon reported $5.48 billion, or $1.28 per share, in net income during the first quarter, doublings its profits compared to the same quarter last year. Excluding identified items, net income increased by $6 billion year-over-year to $8.8 billion, or $2.07 per share, after adjusting for a $3.4 billion after-tax charge related to discontinuing the company's Russia Sakhalin-1 operation. Exxon's total revenue for the quarter came in at $90.5 billion, far exceeding the $59.15 in revenue during the same period a year ago.
"Earnings increased modestly, as strong margin improvement and underlying growth was offset by weather and timing impacts. The absence of these temporary impacts in March provides strong, positive momentum for the second quarter" said ExxonMobil CEO Darren Smith.
Meanwhile, Chevron reported earnings of $6.3 billion, or $3.22 per share, more than four times its earnings in the same period last year. On an adjusted basis, earnings were $6.5 billion, or $3.36 per share. Total sales and other operating revenues in first quarter 2022 were $54.37 billion, compared to $32 billion in the year-ago period.
CEO Mike Wirth said the oil giant is pulling its weight in helping meet energy demand.
"Chevron is doing its part to grow domestic supply with U.S. oil and gas production up 10 percent over first quarter last year," Wirth said. Chevron’s worldwide net oil equivalent production in the first quarter was 3.06 million barrels per day. Permian Basin unconventional production grew to a record 692,000 barrels of oil equivalent per day in the first quarter, as the company raised its 2022 guidance to 700,000 – 750,000 barrels per day, an increase of over 15 percent from 2021" he noted.
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The price of oil climbed steadily during the first quarter after Russia invaded Ukraine, sending European countries which rely heavily on Russia for energy and others scrambling to find alternative sources for fuel. A barrel of the U.S. benchmark crude rose from $76 to nearly $130 per barrel before ending the quarter at $100, and drivers were filling up with increasingly expensive gasoline.