It appears that Big Oil has kicked up yet another gusher. This one, thank goodness, is better than benign.
ExxonMobil
As expected, Exxon benefited from a combination of higher crude prices, stronger refinery margins, and a $1 billion jump in the contribution from chemical operations. Just as importantly, its oil equivalent volumes increased by 8% from a year ago.
But as with people, some companies seem to have all the luck. Unlike forlorn BP
Despite its low representation in the Gulf, however, Exxon is leading an industry effort to foster prevention, well intervention, and spill response to potential deepwater blowouts in the Gulf. This month, along with ConocoPhillips
Easily the company's major accomplishment in the quarter was the completion of its XTO acquisition. With the 45 trillion cubic feet of gas it acquired (at less than $1 per thousand cubic feet), Exxon was immediately catapulted into the top spot among gas producers in the United States. Indeed, it's something of a kick to hear it now talking about its activities in the Marcellus and Haynesville, shale plays once dominated by the likes of Chesapeake
Finally, successful downstream operations also boosted Exxon, with an earnings increase of $710 million. And there was also tangible progress for an algae biofuels partnership in which Exxon is involved.
So, I've said it before, and I'll say it again: It's awfully tough to get up early enough to top Exxon as a Big Oil opportunity.