Oil and Gas Companies Continue to Post Profits and Beat Revenue Projections in Quarter 2
As second-quarter financials are being posted, we once again see the oil and gas industry does appear to be on the upswing. Chevron and Exxon, for example, posted revenues of $37.6 and $67.74 billion during the quarter with both entities beating market projections.
CNBC recently suggested we should expend “bumper” earnings reports across the industry. Royal Dutch Shell bested expectations and announced the launch of share buyback programs. The Wall Street Journal also has reported an increase in investors financing shale producers in a significant shift from 2019 and 2020 practices. These are continued indicators of confidence in the industry by those “in the know.”
While some reports have suggested not as much of this investment money has been put into production efforts, the count of working drilling rigs in the U.S. as of July 23 is 491. That is up from only 251 rigs working this time last year. Pennsylvania remained steady at 18 rigs with Ohio and West Virginia both notching 10 working rigs. By comparison there are 228 active rigs in Texas and 52 in Louisiana.
Hopefully these makers of market confidence will continue to trickle down to the local landowners here in our area in increased royalty payments.
As second-quarter financials are being posted, we once again see the oil and gas industry does appear to be on the upswing. Jeremy McGraw explains.