Exxon and Chevron Report Significant Profit Declines in Q1 Amid Oil Price Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Significant Profit Decline: Exxon Mobil's net income fell 45% to $4.2 billion in Q1, translating to $1.00 per share, down from $7.7 billion or $1.76 per share last year, indicating substantial pressure on profitability despite surging oil prices.
- Hedging Losses: Exxon reported nearly $4 billion in losses from financial hedges due to supply disruptions caused by the Iran war, although the company anticipates these hedges will yield net profits in subsequent quarters once product deliveries are completed.
- Chevron's Performance: Chevron's Q1 profit dropped 36% to $2.2 billion, or $1.11 per share, but adjusted earnings of $1.41 per share exceeded Wall Street's expectations, showcasing the company's resilience in challenging market conditions.
- Market Reaction: Despite the profit declines, Exxon and Chevron shares rose over 1% and 2% respectively in premarket trading, reflecting investor confidence in their ability to outperform earnings expectations amid volatile oil prices.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 190.630
Low
158.00
Averages
176.95
High
206.00
Current: 190.630
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Production Growth: Chevron's acquisition of Hess has led to significant production increases, particularly in Guyana, with projections of 7% to 10% growth in 2026, further enhancing the company's profitability.
- Cost Reduction Initiatives: Chevron anticipates achieving an additional $3 billion to $4 billion in cost reductions this year, which will help boost profits in a high oil price environment and strengthen the company's financial health.
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