ExxonMobil and Chevron, the largest U.S. energy companies, said on Friday that their first-quarter profits fell from a year earlier as refining profits fell and natural gas prices fell.
But even at a time of moderate oil prices, the oil and gas business remains highly profitable for the two giants.
Exxon Mobil said it earned $8.2 billion in the quarter, up from $11.4 billion a year earlier. Chevron said sales fell to $5.5 billion from $6.6 billion a year ago.
Both companies attributed the decline to lower profits from refining crude oil into products such as gasoline and diesel. Their revenues have also been affected by falling prices of natural gas, the main fuel used for heating and industry. Natural gas prices spiked after Russia invaded Ukraine in 2022, but fell sharply as the market corrected.
Chevron’s adjusted earnings of $2.93 per share were slightly above expectations, while Exxon Mobil’s earnings of $2.06 per share fell short of expectations, said Viraj Borkhataria, an analyst at investment bank RBC Capital Markets.
The two companies compete for Guyana’s oil resources. ExxonMobil has led the Latin American country’s development as the most important new oil producer in recent years.
But Chevron is trying to enter Guyana with a proposed $53 billion acquisition of Hess, a mid-sized company headquartered in New York with significant interests in Guyana’s oil fields.
A hesitant Hess is exploring the possibility of using its legal rights to acquire a stake in major oil fields off the country’s coast if Exxon Mobil competitors enter. The matter has started arbitration.
Analysts said uncertainty over whether the merger could be in jeopardy weighed on Chevron’s stock price. Mr. Borjataria called the situation in Guyana an “elephant in the house” for Chevron.
ExxonMobil highlighted its contribution to Guyana in its quarterly earnings report. The company’s chairman and chief executive officer, Darren W. Woods said production there “continues to exceed expectations, contributing to historic economic growth for the people of Guyana.”
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