As of the end of 2023, Exxon reported holding $31.54 billion in cash, with Chevron's reserves at $8.18 billion.
Exxon Mobil and Chevron strategically use their substantial profits to expand their market presence. In a series of aggressive acquisitions, they aim to secure their positions amid sustained oil demand. The U.S. energy sector has seen a flurry of activity with $250 billion in deals in 2023 alone, indicating a trend likely to continue.
This month, Exxon finalized its massive $60 billion acquisition of Pioneer Natural, approved by U.S. regulators, marking a significant increase in its production capabilities. By 2027, this acquisition is projected to elevate Exxon's daily output to over 5 million barrels, positioning it as the leading producer in the Permian Basin, America's most valued oilfield.
On the other hand, Chevron is making significant strides with its recent approval from Hess shareholders for a $53 billion merger. This deal not only increases Chevron's production capacity but also grants it access to the lucrative oil fields in Guyana, anticipated to contain over 11 billion barrels of oil and gas. Chevron's production is expected to exceed 4 million barrels daily by 2027.
Exxon holds a 45% stake in Guyana's Stabroek Block, partnering with Hess and China's CNOOC.
Hess shareholders recently approved their merger with Chevron, though the deal still has several regulatory approvals to secure and faces a lengthy arbitration with Exxon. Despite the fluctuating market, U.S. oil giants like Chevron and Exxon continue to report strong profits, fueled by high energy prices in the wake of geopolitical events in Ukraine. While not reaching the record highs of 2022, their financial outcomes remain robust.
