Oil majors Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (CVX) saw their stocks dip Friday, despite reporting solid earnings as the global oil market showed modest signs of improvement in the third quarter.
Exxon stock dropped 1 percent after the company reported earnings per share of 93 cents on $66.1 billion in revenue for the quarter. Both numbers topped analyst expectations of 86 cents and $63.3 billion, respectively. EPS was up 47 percent, and revenue was up 8 percent compared to a year ago.
Exxon also eased investor concerns over the impact of Hurricane Harvey, which struck a major oil hub in Houston. Exxon said Harvey cost the company just 4 cents per share in earnings.
Exxon’s upstream segment, which includes oil and gas exploration and production, reported $1.6 billion in revenue, up $947 million from a year ago. The company’s downstream segment, which includes its refining business, reported revenue of $1.5 billion, a $303 million year-over-year increase.
Cash flow from operations also jumped 41 percent to $7.5 billion. Capital expenditures were up 43 percent to $5.98 billion.
Chevron stock, meanwhile, dropped 4 percent Friday after the company reported EPS of $1.03 on revenue of $36.2 billion. Both numbers exceeded analyst expectations of 98 cents and $34.05 billion, respectively.
Chevron reported $489 million in upstream earnings, up slightly from a year ago. Income from its downstream refining business surged 70 percent to $1.8 billion.
The U.S. oil sector has gotten a boost from rising oil prices in recent weeks. WTI Crude oil prices climbed from under $49 per barrel to above $52 per barrel in the past three months.
Mark Tepper, president and CEO of Strategic Wealth Partners, says oil companies won’t see the true benefit of higher prices until the fourth quarter.
“Because the price of oil started so low and gradually increased throughout the quarter, we’re really not expecting to see that flow through to earnings this quarter. It will likely be next quarter,” Tepper said on CNBC. “We do feel the tide has certainly turned, and overall, the landscape for the energy sector in general looks to be positive.”
Earnings beats by Exxon and Chevron seem…
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