Oil Giants Profits 2023
Major oil companies, including ExxonMobil and Chevron, achieved significant profits in 2023 despite California's restrictions, taxation, and global sanctions. ExxonMobil reported profits of $36 billion, while Chevron reached $21.3 billion. Interestingly, Rosneft, Russia's largest oil producer, reported a 47.2% increase in net profit.
In 2023, there were several major acquisitions, but they did not significantly impact stock prices. Sector consolidation indicates potential growth. ExxonMobil acquired Pioneer for $60 billion, the industry's largest transaction in two decades. Chevron, on the other hand, acquired Hess Corp. for $53 billion, expanding their extraction capabilities, including offshore fields in Guyana.
In 2023, Exxon achieved substantial profits, generating $55.4 billion in operational cash flow and increasing production in Guyana and the Permian region by 18% compared to 2022, setting a refinery throughput record.
Chevron's CEO, Mike Wirth, stated that the company returned more cash to shareholders and produced more oil and gas than any year in its history. Recent acquisitions are expected to double the company's cash flows, even assuming a $70 per barrel oil price. The company pays dividends and engages in share buybacks, with Warren Buffett increasing his stake in the company.
Chevron and ExxonMobil returned $58.7 billion to shareholders last year. Experts predict this trend to continue in 2024, with consolidation introducing more assets to the market, optimizing portfolios, and creating growth opportunities across the spectrum.
Oil companies are adapting to climate requirements. Exxon plans to spend $25 billion on increasing fuel production by 2027 and invests $17 billion in low-emission projects during the same period.
In a tech-dominated market, energy sector giants may seem overshadowed, but over time, investors may recognize the solid foundations of companies not planning to halt operations amid the energy transition.
Despite wars, sanctions, and OPEC control, major oil companies achieved record profits and distributions to shareholders. Saudi Arabia and Russia's efforts to raise oil prices are expected to benefit these companies. Trump's election victory could serve as a trigger for growth.