Exxon's results were overshadowed by rival Chevron, which easily exceeded Wall Street's expectations with a double-digit percentage increase in production. Fred Katayama reports.
Big profits from Big Oil. Chevron swung to a profit from a loss in the second-quarter. Those earnings and revenue beat Wall Street's expectations. The company cut costs and took advantage of an uptick in oil and gas prices. Its refining margins improved. Chevron stock got a boost on the news. Exxon Mobil posted a rare earnings miss as production slipped in its African and Canadian operations. The company's U.S. portfolio, including its shale projects, lost money. But gas and oil operations across the world posted a jump in profit. Exxon's stock dropped on the news. Mizuho's Bob Yawger: (SOUNDBITE) ROBERT YAWGER, DIRECTOR FUTURES DIVISION, MIZUHO AMERICAS (ENGLISH) SAYING: "The difference is that, I think, Exxon Mobil is more of a big project type of a company, so, that's why they're being penalized. You can't participate in that space for size right now. It's just not cost effective. It gets fully bid at $50. It's a difficult area. That's always been their bread and butter. That's where their strength is. While Chevron also has many of those large projects, they also operate in a better environment where they can profit accordingly because those barrels are on land and they can bring them to market at a lower cost." Rising oil prices have been helping oil producers. Brent crude reached two-month highs on Friday.