Exxon, Chevron Remain Payout Gushers
One reminder from the latest results from Exxon Mobil and Chevron is that the oil and gas business is highly cyclical. Another important takeaway: Their cash payouts aren’t. Exxon Mobil said Friday that net income was $7.9 billion in the second quarter, a 56% decline from a year earlier when both oil and natural-gas prices surged following Russia’s invasion of Ukraine.
Its net income fell about 4% short of Wall Street expectations. Chevron, which prereleased some of its results on Sunday, earned $6 billion in the second quarter—about half of what it made a year earlier but 9% above Wall Street expectations. Brent crude futures averaged about $78 a barrel in the second quarter, down roughly a third from a year earlier, while U.S.
benchmark natural-gas prices declined by more than 50% over the same period. Refining margins have fallen, too, as concerns about Russia’s supply moderated. Despite declining profits, though, the two U.S.
oil majors collectively paid shareholders $15.2 billion in the quarter through dividends and share repurchases—in line with what they distributed a year ago when free cash flow was 3.7 times higher. Both Exxon and Chevron made acquisitions as well, which limits their ability to repurchase shares before the deals close. But the companies on Friday reiterated that they each still plan on meeting their $17.5 billion buyback targets this year.
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