Exxon Mobil and Chevron, the largest U.S. oil companies, on Friday reported a second consecutive quarter of robust earnings as oil and natural gas prices continued to rise after Russia’s invasion of Ukraine.
The two companies said they were increasing their production in the Permian Basin, the giant shale oil field straddling Texas and New Mexico, but were not seeking to ramp up oil and natural gas production overall despite pressure from the Biden administration, which is seeking to tamp down high energy prices.
Exxon reported doubling quarterly earnings from a year ago, even after a write-down of $3.4 billion from abandoning its operations in Russia.
Largely because of soaring oil prices, which rose in the quarter from to well over $100 a barrel from $76, the company made $5.5 billion in the first three months of the year — an increase of more than $6 billion from the same quarter in 2021. The company made an $8.9 billion profit in the last three months of 2021.
Exxon, which is based in Texas, announced it would buy back more of its own shares, now aiming to spend $30 billion through 2023, up from $10 billion.
“The quarter illustrated the strength of our underlying business,” said Darren Woods, Exxon’s chief executive. “Earnings increased modestly, as strong margin improvement and underlying growth was offset by weather” and other factors, he added.
Exxon reported that its oil and gas production was 4 percent lower in the quarter from the previous three months because of bad weather, divestments and planned maintenance.
Exxon’s chemical business was particularly strong, with a profit of $2.1 billion, consistent with records set a year ago.
Chevron reported a $6.3 billion profit, up from $1.37 billion in the same quarter in 2021. Its revenues jumped to $54.37 billion from $32 billion last year.
The company, which is based in California, pledged to continue increasing domestic production, although its total oil and gas production fell modestly. While domestic production increased by 10 percent in the quarter over last year, global oil and natural production declined by 8 percent.
The company’s capital expenditures were only 10 percent higher than last year, a reflection of industrywide caution about future oil and gas prices. In the past, Chevron, Exxon Mobil and other energy companies invested heavily when prices were high, only to suffer losses when prices later fell as the industry flooded the market with supply.
“Chevron is doing its part to grow domestic supply,” Michael Wirth, Chevron’s chief executive said.
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