Chevron, Exxon Earnings Preview: Oil Prices, Acquisitions to Fuel Upward Momentum

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Stocks Analysis by Investing.com (Damian Nowiszewski) covering: Chevron Corp, Exxon Mobil Corp, Hess Corporation, Crude Oil WTI Futures. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

The oil giants' stocks have experienced prolonged consolidation for a while. Is a breakout finally on the horizon now?The last time we witnessed such substantial acquisition-driven moves in the U.S. mining sector was during the turn of the 20th century when Exxon and Mobil merged to form the conglomerate known as ExxonMobil.

Upon finalizing the deal, total production is expected to reach 1.33 million barrels, with the potential to rise to around 2 million barrels per day by 2027. The companies' management has committed to consistently reinvesting increased revenues in alternative energy sources, fostering diversification and aligning with climate goals.Earnings per share and revenue forecasts for ExxonMobil and Chevron for the third quarter of this year are as follows:While there has been a general decline in earnings per share over the past year, the recent months have demonstrated a rebound, coinciding with the surge in oil prices in the global markets.

Despite recent strong local declines, there is no confirmation of a breakout in one direction or the other, which would make it possible to determine the further trend at least in the short term.In the event of an upward breakout, the next target for buyers will be the all-time highs located in the $190 area. On a breakdown, the stock could risk going as low as $142.

 

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Analysis: Cash-rich Exxon, Chevron use stock for mega deals amid energy market jittersExxon Mobil (XOM.N) and Chevron (CVX.N) are flush with cash yet their acquisition targets are taking stock as the only form of payment, an arrangement that allows the two largest U.S. energy companies to clinch transformative deals despite volatile oil and gas prices.
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