Exxon Mobil (XOM) topped first-quarter earnings forecasts, while Chevron (CVX) reported mixed results early Friday as oil prices continue to rally. Exxon stock and Chevron stock fell.
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The reports come as rivals Royal Dutch Shell (RDSA) and BP (BP) return more capital to shareholders again after curbing dividends and buybacks during the pandemic to conserve cash.
Exxon Mobil Earnings
Estimates: Earnings are seen rising 11% to 59 cents per share but revenue is expected to fall 2% to $55.2 billion.
Results: EPS of 65 cents on revenue of $59.15 billion. Operating cash flow jumped 48% to $9.3 billion drove debt reduction of more than $4 billion.
Production was 3.8 million oil-equivalent barrels per day, down 6.4% from a year ago but up 3% from Q4. Permian Basin production rose 12% to 394,000 oil-equivalent barrels per day.
Outlook: Exxon maintained its 2021 capital spending program at $16 billion-$19 billion. In addition to $3 billion in cost cuts in 2020, the company is on pace to achieve $3 billion in more cuts through 2023.
„Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt,“ said Chairman and CEO Darren Woods.
Stock: Shares dipped 0.4% to 58.70 in early stock market trading Friday. Exxon stock has formed a flat base with a 62.65 buy point, according to MarketSmith chart analysis.
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Chevron Earnings
Estimates: Chevron earnings per share was seen falling 26% to 95 cents with revenue down 2% to $30.9 billion.
Results: Chevron earnings per share sank to 90 cents with sales up nearly 5% to $31.7 billion. Operating cash flow fell 10.6% to $4.2 billion. Oil-equivalent production fell 4% to 3.12 million barrels per day.
„Earnings strengthened primarily due to higher oil prices as the economy recovers,“ said Chairman and CEO Mike Wirth. „Results were down from a year ago due in part to ongoing downstream margin and volume effects resulting from the pandemic and the impacts of winter storm Uri.“
Stock: Chevron stock dropped 2.9% to 103.80 in Friday’s premarket. The Dow Jones component rose up 1.7% to 106.99 Thursday. Chevron stock is in its own flat base with a 112.80 entry.
The resumption of BP stock buybacks and Shell’s dividend hikes could put more pressure on U.S. rivals to follow along soon.
On Wednesday, Chevron did raise its quarterly dividend by 5 cents, or nearly 4%, to $1.34 a share.
But Chevron told shareholders in March that repurchases wouldn’t resume until management is confident they can be sustained for multiple years.
Other Oil Companies Up Shareholder Returns
Last year, oil majors suspended buybacks as oil prices crashed during the pandemic. But they are faring better this year. Shell announced Thursday that it raised its dividend 4%, marking the second increase in six months amid rising oil demand. Shell had cut its dividend for the first time since World War II in April 2020 as the coronavirus pandemic decimated demand.
And on Tuesday, BP announced that it plans to resume share buybacks in Q2, becoming the first oil major to do so.
Still, even smaller oil companies are returning more capital to shareholders. On Wednesday, shale producer Continental Resources (CLR) said dividend payments will resume at double the prior rate.
And ConocoPhillips (COP), the largest independent oil producer, resumed its share repurchases last month.
Follow Gillian Rich on Twitter for energy news and more.
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