Forget Oil; Natural Gas Is Fueling Record Profits for Energy Titans Exxon and Chevron
Higher oil prices have enabled big oil giants Chevron (NYSE: CVX) and Exxon (NYSE: XOM) to post surging profits and cash flow during the first half of this year. Brent crude, the global benchmark, spiked from less than $80 a barrel to start the year to more than $120 following Russia's invasion of Ukraine. It remained in the triple digits through most of the summer, enabling oil companies to cash in on higher crude prices.
While oil prices have cooled off considerably in recent months -- Brent has recently been in the low $90s -- that didn't stop Exxon and Chevron from posting record third-quarter results. Instead of oil, natural gas fueled their quarter, showcasing the benefits of their integrated business model.
Exxon reported a record profit of $19.7 billion in the third quarter. That's up 10% from the all-time high it set last quarter. The big driver was record natural gas prices in the period. That enabled Exxon to sell its gas for 172% more than it did in the year-ago period, helping offset lower oil prices compared to the second quarter.
Source Fool.com
