Wall Street eyes Big Oil's deal upsides despite Chevron, Exxon earnings misses

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Super oil majors Exxon and Chevron missed on quarterly results, but Wall Street analysts are more focused on the long game after both companies recently...

posted Q3 earnings misses amid weakness in their oil refining and chemical units. However, energy analysts are focusing on what the super majors'Chevron shares dipped 5% on Friday after adjusted earnings came in at $3.05 per share versus consensus estimates of $3.71 as higher costs at its international refineries put a strain on profits. Natural gas prices, which are down roughly 60% on a year-over-year basis in the US, also weakened the company’s results.

Jeremey Klingel, senior partner of energy and utilities at West Monroe, told Yahoo Finance on Friday that he didn't view the quarterly profit misses at both companies as significant. "Based on our initial assessment, we expect our combined Permian production to increase to approximately 2 million oil-equivalent barrels per day by the end of 2027," said Neil Chapman, senior vice president of ExxonMobil, during the company's earnings call on Friday.

M&A activity in the industry is on the rise as companies look to expand production as oil hovers above $83 per barrel. Buying other players is more efficient than going it alone, Klingel said. “This was probably the last of mega-deals,” Andrew Dittman, senior vice president of Enverus, told Yahoo Finance earlier this week.

 

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