U.S. supermajors ExxonMobil and Chevron, as well as France's TotalEnergies, all cited lower natural gas prices as a key downward pressure on earnings
Much lower natural gas prices this year compared to 2023 dragged down profits at some of the largest oil and gas companies, which have so far reported a mixed bag of earnings for the first quarter of 2024. U.S. supermajors ExxonMobil and Chevron, as well as France's TotalEnergies, all cited lower natural gas prices as a key downward pressure on earnings that couldn't be fully offset by stable crude oil and liquids realizations and refining margins.
But unlike Exxon, Chevron slightly beat the analyst earnings estimates, thanks to higher oil and gas production that offset part of the weaker refined product margins and low natural gas prices. The annual drop in Chevron's Q1 earnings was primarily due to lower margins on refined product sales and lower natural gas realizations, partly offset by higher upstream sales volumes in the U.S.
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