Chevron and Exxon Earnings on Tap: Downstream Takes the Spotlight

Exxon Mobil reported earnings of $2.20 per diluted share, a 12 percent increase over the year-ago period, and ahead of expectations for about $2.00. The big news out of the report is that oil-equivalent production fell 5.2 percent year over year, catalyzing a 12 percent drop in fourth-quarter upstream earnings.

However, with record capital expenditures of $12.4 billion, a 24 percent year-on-year increase, Exxon is proactively pursuing exploration and production opportunities in both oil and natural gas, as well as enhancing its downstream operations.

At a glance, it’s easy to see that improvements in downstream earnings were the primary driving force for earnings in the fourth quarter.