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Exxon Mobil Q2 Results, Chevron Profit Beat Estimates

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Oil major Exxon Mobil Corp. (XOM) on Friday reported a 21 percent decline in profit for the second quarter from last year, while Chevron Corp.'s (CVX) quarterly profit increased 26 percent.

However, Exxon Mobil's results beat analysts' expectations, while Chevron's earnings also beat estimates and its revenues missed expectations. Both the companies recorded higher production in the quarter that helped offset lower crude oil and natural gas prices.

Exxon Mobil's second-quarter net income declined to $3.13 billion or $0.73 per share from $3.95 billion or $0.92 per share in the prior-year quarter.

The latest quarter's results included a favorable item of about $500 million, or $0.12 per share, reflecting the impact of a tax rate change in Alberta, Canada.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share. Analysts' estimates typically exclude special items.

Total revenues and other income declined 6 percent to $69.09 billion from $73.50 billion in the previous-year quarter. Wall Street expected revenues of $65.2 billion.

However, the company's oil-equivalent production in the quarter was 3.9 million barrels per day, up 7 percent from the prior-year period.

Exxon Mobil's upstream segment earnings were $3.26 billion, down from $3.04 billion in the prior-year quarter. The company noted that while average crude oil prices were stronger than the preceding first quarter, natural gas prices declined with supply length and crude-linked LNG lag effects.

The company's downstream segment earnings declined to $451 million from $724 million in the previous year. Industry fuels margins, while remaining under pressure during the quarter, improved from very low levels in the first quarter on stronger gasoline margins, mainly in the U.S.

Chemical segment earnings fell to $188 million from $890 million a year ago, reflecting weak paraxlyene margins.

Meanwhile, Chevron's second-quarter net income rose to $4.31 billion or $2.27 per share from $3.41 billion or $1.78 per share in the year-ago period. Analysts expected earnings of $1.78 per share.

The latest quarter's results include earnings of $740 million associated with the Anadarko merger termination fee and a non-cash tax benefit of $180 million due to a reduction in the Alberta, Canada corporate income tax rate.

However, total revenues and other income for the quarter decreased 8 percent to $38.85 billion from $42.24 billion last year. Wall Street analysts had a consensus revenue estimate of $40.55 billion.

Chevron's worldwide net oil-equivalent production was 3.08 million barrels per day in the quarter, up 9 percent from 2.83 million barrels per day a year ago.

Chevron's upstream segment earnings increased to $3.48 billion from $3.30 billion last year, while its downstream segment earnings declined to $729 million from $838 million in the year-ago quarter.

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