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By Martin Tillier – February 03, 2019, 12:00 PM CST
Exxon Mobil and Chevron released the fourth quarter results this morning, and the market applauded. After a period of misfires, this morning's release was the second consecutive beating expectations for EPS by Exxon, confirming that the T3 was not just a flash. Chevron also benefited from the good results of the last quarter. This is good news for both companies, but if you dig deeper into the numbers and comments, you can learn some interesting things that go beyond the specifics of the business.
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Clearly, the 1.41 USD EPS compared to XOM's expectations of 1.08 USD was significant, but it translated into a turnover of 71.89 billion USD, just below the consensus estimate of $ 72.4 billion. CLC slightly exceeded expectations for EPS and revenue. This suggests that the primary concern was increased profitability at Exxon, not an improvement in market conditions across the industry. Investors should avoid extrapolating good news over the long term to other major oil companies and the energy sector in general. In fact, some details of Exxon's beat actually suggest that the opposite may be true.
They reported a 4% increase in oil production, mainly due to increased activity in the Permian Basin. About one-third of US crude is now sourced from this region and, according to details given by Exxon CEO Darren Woods, in a CNBC post-profit interview, the cost …
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