US oil majors beat expectations in third-quarter reports, with six of seven companies topping EPS

what happened

According to Seeking Alpha, energy shares drew investor attention this week as a wave of third-quarter earnings came in. Seven companies reported, and six beat expectations for earnings per share while one fell short. Every company except EQT also topped revenue forecasts.

Exxon Mobil rose on Friday after its results beat Wall Street estimates, as soaring gasoline and diesel prices pushed refining earnings to an all-time high. The company plans to invest more than $100 billion through 2030, with roughly 10% aimed at refining. Chevron shares also advanced after revenue beat forecasts, helped by stronger margins on refined products and higher crude realizations. Phillips 66 gained 1.9% on Wednesday, lifted by refining strength as Middle East and Ukraine conflicts disrupted diesel supplies.

why it matters

The reports suggest refining is currently a major source of profit for large producers, since fuel prices have risen faster than crude in some cases. That matters for markets because it points to resilience in the sector amid uncertainty over energy prices. Baker Hughes, by contrast, fell 5.4% despite better numbers, as the Middle East conflict weighed on oilfield services demand in the region.

market impact

US oil majors: strong results and high refining margins support the sector

tags

instruments