ExxonMobil and Chevron released their third quarter earnings reports before opening bell this morning. ExxonMobil beat estimates with earnings of $1.01 per share and revenue of $67.34 billion. Analysts had been expecting earnings of 89 cents per share and $61.7 billion. In last year’s third quarter, the oil giant posted earnings of $1.89 per share and revenue of $107.13 billion.

Chevron also beat expectations with earnings of $1.09 per share and $33 billion in revenue. Analysts had been expecting earnings of 83 cents per share and revenue of $31.1 billion.

  1. Exxon Mobil Corporation, Chevron Corporation Beat Earnings Estimates

ExxonMobil posts strong results despite oil prices

ExxonMobil’s earnings fell 47% from $3.8 billion to $4.2 billion, while the earnings per share were 47% year over year due to lower commodity prices. The oil giant found strength in its downstream business, however, as earnings from the segment almost doubled as a result of higher margins in refining. The chemical segment also saw strength in margins and quality of the asset and product mix.

Upstream production volumes climbed 87,000 barrels per day or 2.3%, to 3.9 million barrels of oil equivalent per day, while liquids volumes increased 13% to 2.3 million barrels a day. The declines of realizations in the upstream business more than offset the strong earnings in the downstream and chemicals segments.

As of this writing, shares of ExxonMobil were up 0.94% at $83 per share.

Chevron to cut jobs

Chevron reported a negative impact of $394 million from currency exchange. The company also noted that natural gas and crude oil prices remained week and continued to weigh on its revenue despite strength in the downstream business. As a result, management is planning a series of cost-cutting measures. Chevron expects to cut capital and exploratory expenditures by 25%, and they expect to continue cutting spending through 2018. The company also intends to trim its workforce by 6,000 to 7,000.

In the upstream business, the oil giant cut production from 2.57 million barrels of oil equivalent per day to 2.54 million barrels. The U.S. upstream business swung to a loss of $603 million compared to last year’s income of $929 million. The international upstream segment’s income plunged from $3.72 billion last year to $662 million this year.

Chevron’s U.S. downstream business brought in earnings of $1.2 billion, an increase from $809 million last year. The international downstream business’s earnings climbed from $578 million to $962 million.

As of this writing, shares of Chevron were up 0.82% at $90.60 per share in premarket trading.