Chevron Outshines Exxon as Oil Prices Surge

Exxon Mobil and Chevron reported their quarterly earnings, with Exxon Mobil posting its highest profit in four years but falling short of expectations. The energy giant's adjusted net income was $14.7 billion, with earnings per share of $3.52, below the expected $3.60. However, Chevron exceeded forecasts to post a six-year high, with adjusted profits reaching $12 billion and earnings per share of $6.06.

The main reason for Exxon Mobil's lower-than-expected profit was its exposure to Middle Eastern assets, which were affected by production capacity disruptions. In contrast, Chevron has a relatively smaller share of output from the region, allowing it to capture more of the upside from higher oil prices.

Exxon Mobil's total production in the second quarter declined to 4.5 million barrels of oil-equivalent per day (boe/d), down from 4.6 million boe/d in the first quarter. However, record-high output from the Permian Basin in the United States partially offset losses from the Middle East.

Chevron's downstream business achieved record results, driven by both higher oil prices and refining margins. The company's total production reached 4 million barrels of oil equivalent per day (boe/d), higher than 3.85 million boe/d in the first quarter.