According to the Securities Times APP, U.S. oil and gas giants exxon mobil (XOM.US) and chevron (CVX.US) beat analysts' expectations with their latest performance, as the significant increase in production from the Permian Basin helped offset the weak trend in crude oil prices. On Friday, exxon mobil's adjusted profit for the third quarter exceeded expectations by 5 cents, while chevron exceeded expectations by 11 cents. Earlier, European oil and gas industry competitors royal dutch shell, totalenergies, and bp plc announced mixed performance.

Since early April, oil prices have fallen by about 20%, coupled with the dim outlook for prices in 2025 due to potential oversupply of oil, this is testing the ability of oil giants to uphold their commitment to large-scale share buybacks, commitments that date back to the crude oil rebound after the COVID-19 pandemic. Although Exxon Mobil has ample cash flow to cover these expenses, Chevron is cash-strapped, forcing this supergiant to rely on borrowing.

After announcing better-than-expected performance, the stock prices of the two North American oil and gas giants rose collectively in pre-market trading. Exxon Mobil rose 1.9% in pre-market trading. Chevron's stock price rose 2.5%.

Exxon Mobil is the best performing oil giant in the U.S. this year, with an increase of over 15% even as international crude oil prices fall. This largest-scale energy exploration company in North America has proven that compared to its peers, it has achieved more growth in oil and natural gas production, lower costs, and to some extent offset the negative impact of the sharp drop in crude oil prices.

Exxon Mobil has increased its dividend for 42 consecutive years, currently reaching 99 cents per share, exceeding analysts' dividend forecast of 97 cents.

Exxon Mobil's chief financial officer, Casey Mockers, stated in an interview that Exxon Mobil is able to "fully pay" dividends and share buybacks through its massive cash flow without any borrowing. She said the company has up to $27 billion in cash reserves, a net debt-to-capital ratio of only 5%, and is in a "strong position" before any downturn in the oil market of any size.

"We have done a lot of work to fundamentally increase the company's potential profitability, which will put us in a very favorable position," Mikkels said.

It is understood that the U.S. oil and gas giant Exxon Mobil is rapidly expanding its oil development projects in Guyana and the Permian Basin, producing crude oil at a cost of less than $35 per barrel, while the price of crude oil is currently over $70 per barrel. At the same time, Exxon Mobil is carrying out several large-scale natural gas export projects in Texas, Papua New Guinea, and Mozambique. Earlier this year, after acquiring Pioneer Natural Resources for $60 billion, the company became the largest oil and gas producer in the Permian Basin.

As for Chevron, the exploration company expects to complete asset sales in Canada, Congo, and Alaska by the end of the year, part of Chevron's plan to raise up to $15 billion by 2028 through asset sales. The company also plans to cut costs by up to $3 billion by the end of 2026.

Chevron's oil and gas production exceeded expectations by 7% compared to the same period last year, driven by the company's record quarterly oil and gas production in the Permian Basin in the United States. The company has also started production from Anchor, the first in a series of new investments in the Gulf of Mexico.

In the third quarter, Chevron's total dividends and buybacks amounted to approximately $7.7 billion, exceeding the $5.6 billion in free cash flow for the quarter.

Earlier this year, Chevron committed to repurchasing up to $17.5 billion in stocks annually, accounting for about 6% of its market cap, making it one of the largest share buyback programs in the industry. Management stated that if necessary, they are willing to use borrowed funds to pay for this amount, as the company's debt is currently well below its medium-term target.

However, analysts from Citigroup suggest that Chevron and other oil and gas exploration companies with the most aggressive share buyback programs, such as the Norwegian state oil company, may "need to reallocate" to deal with the ongoing decline in oil prices. "These stories of negative changes will be seen as a key issue by some investors," wrote the team led by Citigroup analyst Alistair Syme in a report on October 23.

Chevron's stocks have performed poorly this year due to a arbitration battle causing the $53 billion deal to acquire Hess Corporation to be stalled long term. New projects in the Gulf of Mexico and Kazakhstan will start generating significant cash flow from next year, but at the same time, Chevron heavily relies on oil and gas production in the Permian Basin, where about half of its oil and gas assets involve stakes in oil and gas projects operated by other companies.

Chevron's Permian Basin production - targeting close to 1 million barrels per day by 2025.

The company is also involved in a high-profile dispute with the government of California, USA over refinery regulations, claiming that these regulations increase costs and gasoline prices. Chevron also announced plans to move its corporate headquarters from the San Francisco Bay Area to Houston. The company, which has a 145-year history, previously had its headquarters in the Golden State.