U.S. oil major Exxon Mobil said in a regulatory filing on Wednesday changes in crude oil prices could lower its fourth-quarter upstream earnings by about $800 million to $1.2 billion. ...

Financial Performance - Exxon Mobile's earnings per share is at $1.88 [1] - Cash flow from operations came in at $14.8 billion [2] - Free cash flow was $6.3 billion [2] Operational Highlights - Lower crude prices, weak chemical margins, and reduced volumes from asset sales weighed down earnings [2] - Stronger output in the Permian and Guyana partially offset the negative impacts [2] - Guyana's quarterly production topped 700,000 barrels a day [2] - Ongoing cost savings contributed to offsetting negative impacts [2] Market Trends & Outlook - Crude oil prices and business margins are key areas of focus [3] - Amazon stock is up about 13% in pre-market [4] - Nvidia stock is up about 2% in pre-market [4] - Apple stock is close to up 2% in pre-market [4]

Financial Performance - Philip 66's earnings reached $250%, equivalent to $052 per share, exceeding expectations of $217% [1] - The company achieved 99% capacity utilization in refining during the quarter [1] - Net operating cash flow for the quarter was $12 billion [1] - Realized margin rose to $1215 per barrel, up from $831 a year earlier [4] Operational Efficiency and Cost Management - The company has reduced costs by $1 per barrel over the past few years [4] - Enhanced utilization and record yields have been achieved, with costs consistently decreasing [5][6] - Disciplined execution and thoughtful investments have contributed to improved performance [2][3] Market Dynamics and Strategy - Refining capacity is tightening as global demand increases, which is constructive for refiners [7] - The company focuses on putting the lowest cost, highest value crudes into its refineries [9] - The company is committed to providing energy and improving lives in California [14] - Peak oil is not considered a real thing, and there are expected to be plenty of hydrocarbons for decades to come [17] California Operations - The Los Angeles refinery stopped crude oil processing recently and will be idled for redevelopment [9][10] - Operating refineries in California is more expensive and it's more difficult to access the right crude oils [13] - A new pipeline with Kinder Morgan is being considered to bolster delivery of refined product to the West Coast [12]

Fiscal Policy - Saudi Arabia has already sufficiently reduced spending this year [1] - Further fiscal adjustments are unlikely, even if crude oil prices decline [1] Economic Outlook - The IMF suggests Saudi Arabia's current fiscal stance is adequate [1]

Financial Performance - Chevron's adjusted earnings per share were $1.77, exceeding the street's expectation of $1.70 [1] - Revenue surpassed expectations, reaching $44.8 billion compared to the anticipated $43.8 billion [1] - Free cash flow increased by 15%, despite a 10% decrease in crude oil prices [3] - Free cash flow is projected to grow by $12.5 billion over the next two years, from $8.5 billion in 2024 to $21 billion in 2026 [4] Production and Operations - Worldwide and US production reached record levels, with production hitting 1 million barrels of oil equivalent per day for the first time [2] - Production in the Permian Basin has seen a tenfold increase over the past decade [2] - Synergies from the Hess acquisition are expected to contribute an additional $1.5 billion from Guyana and $1.5 billion in overall synergies [6] Investment and Capital Allocation - Dividends and share buybacks are secure, with buybacks ranging between $10 billion and $20 billion per year [4] - Chevron repurchased approximately half of the shares issued for the Hess acquisition since the deal was announced in October 2023 [7] - Chevron anticipates $1 billion in synergies from the Hess deal by the end of the year, halving the initially projected timeframe [8] Strategic Partnerships and Challenges - The Hess deal, announced in October 2023, was delayed due to mediation initiated by ExxonMobil regarding the Guyana share [7] - Despite tensions, Chevron expects continued cooperation with ExxonMobil in Guyana, where Hess has had a couple hundred people working on the ground [9][10][11][12]

Oil Market Dynamics - Initial market panic and oil price surge followed the US action against Iranian nuclear facilities, but prices plummeted after Iran's retaliation, suggesting the worst might be over [1] - Iran's potential closure of the Straits of Hormuz is unlikely due to its own 17 million barrels per day of exports passing through it [1] - Market's conclusion that the conflict won't be as problematic as initially feared contributed to the $5 drop in crude oil prices [1] - Oil futures market reactions to news events can be unrealistic, with prices often dropping after events due to market pricing in uncertainty [1] - Oil prices returned to pre-attack levels, indicating a short-lived impact from recent events [5] US Energy Exports - US crude oil production is near its peak at 135 million barrels per day and is expected to remain flat for the foreseeable future [1] - Ethane is being used as a bargaining chip in the US-China rare earth minerals debate [1] - The US exports about 05 million barrels per day of ethane, with half going to China, but current exports are prohibited by the Department of Commerce [1] - Weaponizing ethane is causing global customers to view US energy exports as untrustworthy [2][3]