New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Value Ideas and Strategies
Share and discuss value investing ideas and investing strategies.
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Chevron and Exxon Gain as Violence in the Middle East Continues to Disrupt the Energy Industry
Posted by: JulieYoung789 (IP Logged)
Date: August 6, 2014 04:17PM

Chevron (CVX) and Exxon (XOM) both reported earnings last week as the energy industry undergoes rising oil prices due to violence in Iraq.

Chevron’s August 1 earnings report was positive with net income of $5.7 billion and earnings per share of $2.98. Earnings progressed from the second quarter of 2013 when net income was $5.4 billion and earnings were $2.77 per share. At $2.98, earnings per share soundly beat analysts’ consensus estimate of $2.66. Rising oil prices helped the company to achieve total revenue of $55.6 billion for the second quarter, up from $55.3 billion in the second quarter of 2013. Upstream and downstream earnings reports were as predicted with little disruption from violence in Iraq.

On Thursday, July 31, Exxon also reported positive second quarter earnings results with earnings per share of $2.05 beating analysts’ consensus estimate of $1.86. Net income for the second quarter was $8.8 billion, up from $6.9 billion in the second quarter of 2013. At $2.05, earnings per share for the second quarter were up $0.50 from the second quarter of 2013. In its second quarter earnings report Exxon stated total revenue for the quarter of $111.65 billion also aided by higher oil prices in the industry. The company did not report any major disruptions from violence in the Middle East.

While both companies appear to have diverted delays in Middle East production and refinery processing, unrest in Iraq and the surrounding countries still continues to cause some slowdown in world oil production for the Energy market overall. According to CNN, Iraq holds the world’s fourth-largest reserve of oil. Further unrest and oil production slowdowns are likely to have similar effects on oil prices until violence ceases.

While oil production shows signs of struggling abroad, it does not appear to be significantly impacting the U.S. energy sector exemplified by strong earnings reports for the second quarter from Chevron and Exxon. Year-to-date Chevron is up 0.65%. Exxon Mobil is down 2.18% year-to-date just below the Dow Jones Industrial Average which is at -0.81%. The S&P 500 Energy sector overall has gained 8.02% year-to-date thru August 6.



Stocks Discussed: CVX, XOM,
Rate this post:

Rating: 0.0/5 (0 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK