Kevin’s thoughts:
When it comes to financial and market issues, hold fast to what you can validate – and not just what we hear on the news, social media or talking heads.
The talking heads tell us the blame for high gas prices should fall on Biden/Trump/Obama, Keystone Pipeline, Russia, Ukraine, European markets, federal restrictions, the Middle East, etc…
Consider this:
“Energy giants ExxonMobil (XOM) and Chevron (CVX) stocks rose and topped earnings estimates this week as both companies posted record profits again in the second quarter, extending their record profits, and stock increases to nearly two years.”
“ExxonMobil: Projected Exxon earnings per share of $3.84 on $111.3 billion in revenue for the second quarter.
Results: Exxon Mobil earnings soared 276% to $4.14 per share. Sales spiked 70% to $115.7 billion.
Exxon Mobil said it added at least $2.5 billion to its bottom line in the second-quarter. XOM’s revenue in the first quarter increased 53% year over year to $90.5 billion. Earnings soared 218% to $2.07 per share.”
“Chevron: Earnings of $5.08 per share and $58.6 billion in sales.”
“Results: Chevron earnings per share leapt 240% to $5.82. Revenue spiked 83% to $68.7 billion in the second quarter.
Chevron reported Q1 revenue of $54.4 billion, up from $32 billion in the same quarter in 2021. That represented a 70% increase, year over year. EPS jumped to $3.25 a share from 90 cents, an increase of 261%.
Oil stocks have consistently outperformed the market throughout 2020-2022. Exxon Mobil and Chevron have both consistently post strong profits. That growth owed largely to the future’s inflated prices verses actual price of crude oil, as well as gasoline at the pump.”
Trust what you can validate.
https://www.ft.com/content/13f82093-1110-4c92-9fea-936067a5f29e
Kevin's Thoughts 