- Exxon Mobil (XOM +0.6%) and Chevron (CVX -0.7%) both reported mixed Q1 results last Friday but Barclays (LON:BARC) analysts say a “structural deterioration” in XOM’s project portfolio makes CVX the clear favorite between the two companies.
- XOM's core Q1 E&P earnings beat consensus at $3.5B but results included a $386M gain on asset sales, which would have trimmed the result to ~$3.1B and pushed the company's EPS below $1.00, Barclays says.
- XOM's “underlying upstream fundamentals appear to have suffered a structural deterioration, due in large part to two massive, ill-timed, low margin and extremely expensive investments,” namely the acquisition of nat gas producer XTO Energy and its Kearl oil sands project in Canada, Barclays writes.
- CVX’s Q1 results “will have positive impact on its near-term share performance,” with results strong across the board and “in stark contrast to an uninspiring print" by XOM, according to Barclays, adding that the contrasting results by the two U.S. majors are “a preview of the upstream struggles Exxon may face going forward."
- Now read: Chevron Turns To International Shale Plays For Growth
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