ExxonMobil earnings dive 52%

Upstream: Chevron’s total production of crude oil and natural gas edged up 2% from the year-earlier level to 2,596 thousand oil-equivalent barrels per day (MBOE/d). But the top line came above the Zacks Consensus Estimate of $66.4 billion. In the same quarter last year, the company reported revenue of $55.58 billion and earnings of $2.98 per share.

The San Ramon, California-based oil major took in $571 million, or 30 cents a share, in second-quarter profits, down from $5.67 billion, or $3 a share, in the same April-June period previous year.

Upstream earnings fell $5.9 billion to $2 billion, with a decline in upstream liquids cutting the segment’s earnings by $4.5 billion. In the U.S. upstream arm, which makes up about 25% of total output, the company reported a $47 million loss, down $1.2 billion from 2Q2014. Higher volume increased earnings $330 million as the result of new developments.

Chevron sold off $1.8 billion in assets during the quarter, but its impairment charges came in at $2.6 billion. This was partially offset by unfavorable volume and mix effects.

“Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” ExxonMobil CEO Rex Tillerson said.

Dow member ExxonMobil’s shares dropped 1.8 percent to 81.51 in pre-market trade.

It took a $1 billion loss in its U.S. upstream unit because of the write offs, even as its oil and gas output increased in the Permian Basin in West Texas, the Gulf of Mexico and the Marcellus Shale in Pennsylvania. The eliminated positions are across 24 business groups in its corporate center and will result in cost reductions of about $1 billion. Part of the charges, said CFO Pat Yarrington during a Friday conference call, stem from a downward revision to the longer-term crude price outlook. Chevron’s downstream earnings rose from $721 million to $2.956 billion, including both global and U.S.

Its oil and gas production increased 2 percent to 2.6 million barrels a day in the second quarter, coming from its fields in the United States, Bangladesh and Argentina.