U.S. oil majors Exxon Mobil and Chevron are good at squeezing hydrocarbons out of the ground. On Friday after both released quarterly results, their shares took a further leg down—Chevron by 6.7% and Exxon by 1.9%. Exxon is down 4.2% since its deal announcement, while Chevron is down 12% since news broke of its acquisition. Exxon said its energy-products segment was negatively affected by unfavorable timing of its hedges, which will unwind over time. Another explanation is that investors simply need to see more evidence of synergy and cash-flow potential before getting excited about the announced deals.

Source: Wall Street Journal October 31, 2023 17:56 UTC