Exxon and Chevron Earnings Surge Amid Geopolitical Tensions
ExxonMobil and Chevron, the two largest U.S. integrated supermajors by market cap, reported strong second-quarter profits driven by rising oil prices due to renewed geopolitical tensions in the Middle East.
Exxon's earnings per share (EPS) came in at $3.52 on revenue of $116.02 billion, missing estimates but beating revenue expectations. Chevron posted EPS of $6.06 and revenue of $70 billion, surpassing consensus estimates with significant profit increases in its refining and exploration and production segments.
The energy sector's performance is closely tied to the earnings of these two companies, as they are top holdings in major energy ETFs such as the State Street Energy Select Sector SPDR ETF (XLE) and the Vanguard Energy ETF (VDE). These funds have seen modest gains since the earnings announcements, with XLE up 0.15% and VDE gaining 0.17%. However, Exxon's stock has declined roughly 1.85% since its morning earnings announcement.
The companies' influence on the energy sector extends beyond their own performance, as they are also major contributors to dividend-focused ETFs such as the iShares Core High Dividend ETF (HDV). Exxon and Chevron have raised their annual dividend payments for 43 and 39 consecutive years, respectively, making them staples in numerous dividend-oriented strategies.