((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Exxon's profits down 5% from a year ago, Chevron's profits down 21% on weak refining
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But the big American oil companies are overtaking their European rivals who have focused on renewable energies
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Rising oil production expected to be tested by slowing demand growth
(Added chart and updated actions in paragraph nine) by Shariq Khan
U.S. oil producers Exxon Mobil fuel margins.
Both companies have focused on expanding oil and gas production, while rivals BP BP.L and Shell SHEL.L have invested heavily in wind, solar and renewables, which do not have not yet borne fruit. Both US oil companies have meanwhile benefited from acquisitions of smaller oil producers.
However, their rising production could soon face uncertain demand, particularly in China, the largest oil importer, and the possibility that OPEC will lift its production restrictions as early as next month. The group is expected to delay a plan to add 180,000 barrels per day due to concerns about weak demand and a supply glut.
Exxon pumped a record 4.6 million barrels of oil equivalent per day (boepd) in the third quarter, an increase of more than 24% from a year earlier, as its $60 billion bet on Pioneer Natural Resources and the Denbury purchase paid dividends.
Chevron, whose $53 billion takeover of Hess HES.N was delayed, posted a 7% increase in third-quarter production to 3.36 million bpd, driven mainly by gains in its manufacturing business. shale in the United States, which pumped a record 1.61 million bpd. It added a drilling rig in the Permian Basin in the last quarter and will begin a production expansion in Kazakhstan in the next quarter.
Both companies reported lower profits than the previous year as weak global refining margins hit BP and TotalEnergies hard
TTEF.PA and which also reduced their oil profits. Exxon's third-quarter profits fell 5% from a year ago, while Chevron's profits fell 21%.
But those declines fell short of Wall Street's expectations and were not as sharp as those of major European rivals. BP reported this week a 30% drop in profits compared to the previous year, and TotalEnergies posted a 37% drop in adjusted net profit.
Exxon's profit of $1.92 per share was four cents above Wall Street forecasts, while Chevron's adjusted profit of $2.51 per share was well above analysts' average estimates of 2. $42, according to LSEG data.
Chevron shares gained 3.1% to $153.41 at midday, while Exxon was virtually unchanged at $116.77.
Both companies have pumped record amounts of oil and gas into the Permian Basin, the United States' main shale deposit. Exxon's production in this basin, which spans Texas and New Mexico, reached a record 1.4 million barrels per day.
Exxon has no intention of slowing down.
“We see tremendous opportunities to invest in profitable growth of our existing and new businesses,” said Kathryn Mikells, Chief Financial Officer.
Chevron said its Permian production rose 22% to a record 950,000 bpd, thanks to last year's acquisition of PDC Energy, and was on track to reach 1 million bpd. bpj in this area next year.
