ALBAWABA - ExxonMobil and Chevron, two of the largest oil companies in the United States, reported higher-than-expected profits in the first quarter of 2021, according to company reports released Monday.
While both companies said they paid off debts accumulated during the COVID-19 pandemic slowdown, both differ on how they plan to use their cash reserves.
Wall Street is pressing both firms to increase share buybacks and dividends, but the companies have reduced spending on new projects and have large cash reserves that exceed their needs for routine operations.
ExxonMobil CEO Darren Woods said he is happy with the company's increased cash liquidity and that the firm is well-positioned to weather economic downturns.
While he did not oppose mergers and acquisitions, he did not commit to any specific actions.
ExxonMobil had $32.6 billion in cash reserves at the end of the first quarter, while Chevron had $15.7 billion, triple what they need for operations.
