While there haven’t been any major upgrades or downgrades from key analyst firms for either Chevron Corp. (NYSE: CVX) or Exxon Mobil Corp. (NYSE: XOM), this is what we have seen so far from Credit Suisse in light of $80 oil. The weight of dropping oil prices was not entirely felt this quarter as both oil giants posted strong earnings, but this drop started in very late September and early October, right as the quarter came to a close. We might see the full effect of this in the fourth quarter.

Chevron posted a solid beat on its earnings for the third-quarter but did not issue forward-looking guidance. It reported an overall improvement for its downstream results that reflected refinery reliability in the United States. The company also had strong cash generation for the quarter, which adds to its base production and allows for expansion in its projects.

Edward Westlake explained how Credit Suisse felt about Chevron:

We remain very comfortable with our analysis, which suggests CVX has a good base production; new projects should have strong cash margins, the downstream will add cashflows and capital intensity per bbl will fall once Gorgon and Wheatstone are delivered. With a lower oil price and heavy current spend, it is natural there are skeptics, particularly when XOM (who are further along in their improved cash cycle) are reaping the benefits. The 2015 capital update, the March Analyst Day and seeing the cashflows from Gorgon (and also the US) will be key to closing the gap with our fair value. As the CFO stated on the 3Q call “It is our distinct intent to widen out our free cash flow over time once we get into the cash generation phase of our Major Capital Projects”.

An updated view on the projects puts Gorgon at 87% complete with both LNG tank #1 and #2 on track to completion in January. Jack St-Malo and Tubular Bells are expected to start up soon but Big Foot may be delayed due to Gulf of Mexico loop currents. Growth in Shale remains steady.

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Credit Suisse raised its earnings per share estimates for the 2014 full year to $9.76 from $9.42 and for the 2015 full year to $9.19 from $8.96. Credit Suisse has a target price of $145 for Chevron. Shares of Chevron closed Friday up 2.3% at $119.95. The consensus analyst price target is $133.16, and the 52-week trading range is $106.65 to $135.10. Chevron has a market cap of $227 billion.

Credit Suisse issued another report for Exxon Mobil, so we can line these giants up side by side and see how they compare. Exxon reported strong earnings for the third-quarter, which rose roughly 3% year over year. These earnings were driven by higher margins and improved operations in the company’s downstream and chemical businesses.

Credit Suisse analyst, Edward Westlake, explained the bottom line for Exxon as:

Over the summer, we outlined how different it was to be on the road with a Major that has completed its latest suite of mega projects and was now enjoying the cashflow delivery and deferred maintenance capital that long lived assets provide. On the cashflow side, XOM’s new projects are delivering cash margin expansion. In Angola, PSC cost recovery makes projects highly cash generative in early life, with fading cash flow over time. However, the uplift from improved fiscals and better gas prices (PLNG) than the current portfolio mean that some of the improved cash generation in 3Q results may be here to stay. On the capex side of the equation, XOM is in the luxurious position of having a high share of long lived upstream assets (e.g. global LNG, Heavy Oil) and also a higher share of long lived downstream assets. Together with superior project execution, which might be 20%+ better than peers, it is easy to see how XOM delivers superior free cash generation. With a lower cost of capital, this supports a higher multiple.

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Along with this, Credit Suisse raised Exxon’s earnings per share estimates for 2014 to $7.11 from $6.88. Credit Suisse also raised its 2015 earnings per share estimate to $6.66 from $6.50. However, the estimate for 2016 was lowered to $7.72 from $7.79. Credit Suisse raised its target price to $100 from $95. Shares of Exxon closed regular trading Friday up 2.35% to $96.71. The stock has a consensus analyst price target of $101.21 and a 52-week trading range of $86.91 to $104.76. Exxon’s market cap is near $412 billion.

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