Standard Oil Earnings On Deck: Exxon vs. Chevron (XOM, CVX)

This week has already been an interesting week in the oil patch, but for big oil stocks the expression "You ain’t seen nothin’ yet" is perhaps more appropriate than ever.  On Thursday morning we’ll see earnings from Exxon Mobil Corp. (NYSE: XOM) and on Friday morning we’ll see earnings from Chevron Corp. (NYSE: CVX).  Perhaps the biggest takes Wall Street is interested in hearing is the stances on any hedges versus how the public comes up versus how much money these companies are making off of the public at the pump.  Today’s rapid rise in oil has been a help for oil stocks, but many are still closer to 52-week lows than to highs.

First on deck is Exxon Mobil Corp. (NYSE: XOM) before the openThursday.  Big-Big Oil is expected to post $2.52 EPS and while revenuesare rarely covered they are expected to go well over $100 Billion forthe quarter.  Oil companies rarely give estimates ahead but Wall Streetestimates are $9.81 for Fiscal-2008.  The key long-term moving averagesare well ahead of today’s prices as the 50-day average is $86.42 andthe 200-day average is $87.79.  The big wild card is the ongoingplanned sale of its 2,200 company-owned retail gas stations.

On Friday before the open we’ll get earnings from Chevron Corp. (NYSE:CVX) before the open.  The (former) little brother is expected to post$3.03 EPS and revenues are generally expected to be north of $90Billion.  Again, oil companies rarely give estimates ahead but WallStreet estimates are $12.62 for Fiscal-2008.  The key long-term movingaverages are still well ahead of today’s prices at $86.00 as the 50-dayaverage is $95.24 and the 200-day average is $89.67.  Chevron already gave a partial update if you wish to review.

If you think oil companies are big now, go back 98 years….. John D.Rockefeller’s Standard Oil was the predecessor of both Exxon andChevron, along with many others.

Jon C. Ogg
July 30, 2008