Impact of Lackluster Earnings on XOM and CVX -- What's Next for the Energy Stocks?

Oil behemoths Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX) recently reported third-quarter results, indicating enduring difficulties in accelerating oil production growth. Earnings have significantly dropped from the year-ago quarter, failing to meet the Wall Street projections. Nonetheless, both firms reported an upswing in earnings quarterly.

XOM's oil production has tumbled, while CVX has faced setbacks impacting key growth endeavors in Kazakhstan and the major hubs of oil production, including the Permian Basin in West Texas and New Mexico.

The market reaction to the earnings reports was swift and severe. CVX’s shares plunged about 7%, and a descent of 1.9% in XOM's shares was observed despite rising oil prices due to escalating tensions in the Middle East. This response underscores investor anxieties about these fossil fuel behemoths' long-term viability and fiscal discipline relative to sectors like technology.

Both companies confirmed technical issues in the Permian region, including constraints on wastewater production, high concentrations of carbon dioxide in natural gas, and challenges encountered by production partners during fracking operations. The complications of oil production expansion, coupled with operational problems, are anticipated to influence a surge in industry-wide costs.

However, not all seems grim for the oil corporations. The oil majors are reportedly amplifying their capital investments within the oil and gas sector, undeterred by growing global consensus on a shift towards clean energy alternatives. The acquisitions underscore the enduring interest of the oil companies in profitable oil and gas ventures.

These strategic moves suggest that these corporations do not anticipate a decline in oil demand in the future. Instead, they lean toward believing that oil's role will remain pivotal in the world's energy matrix for the foreseeable future.

The International Energy Agency's (IEA) forecast of oil demand peaking by 2030 amid expanded use of renewable energy sources. The prediction undermines the justification for increased expenditure on fossil fuels and further prompts the question of why cash-rich oil titans are not pivoting toward green energy ventures.

The answer lies partly in the clean energy transition being a long-term, costly process, complicated further by the current economic backdrop of persistent inflation, escalating borrowing expenses, and continual supply chain difficulties.

For the past two years, geopolitical instability – from Russia's military aggression in Ukraine to long-standing conflicts in the Middle East, has fostered unpredictability in energy prices. This has prompted concerns over energy demand, infusing uncertainties in the market. Additionally, easing oil and natural gas prices has exacerbated the profitability challenges of XOM and CVX.

A cautious approach has pervaded the market, with participants adopting a vigilant stance, awaiting the outcomes of pivotal events, including the U.S. Federal Reserve policy meeting and China’s latest manufacturing data.

In its most recent Commodity Markets Outlook, the World Bank projected global oil prices to reach around $90 a barrel during the last quarter of the year before diminishing to an average of $81 a barrel throughout the coming year as global economic growth decelerates. Such a decline could cast a shadow over the financial health of XOM and CVX.

These corporations, heavily vested in the extraction and sale of oil and gas, stand at risk of substantial revenue reductions, which could compromise their net profitability. Dwindling prices could pose formidable challenges for these companies in securing funds for new ventures and investments, jeopardizing their future profitability.

On the flip side, however, OPEC+ and Russia’s prolonged production cuts, in addition to the geopolitical turmoil, could exacerbate supply chain disruptions, propelling oil and gas prices in the future. This development creates a conducive climate for extraction and ensuing production activities.

Let’s see some other factors that have the potential to influence the stocks’ performance in the near term:

Exxon Mobil Corporation (XOM)

With a market cap of over $419 billion, XOM explores and produces crude oil and natural gas in the United States and internationally.

The cash influx enabled XOM to authorize a $60 billion acquisition of Pioneer, which attracted international media attention. Experts predict the strategic maneuver could boost XOM's domestic oil production twofold, catapulting the company into the top tier of American producers. It could stimulate added consolidation within this fragmented sector, strengthening American shale producers' role as the commanding players in the international oil market.

However, XOM's third-quarter profits fell by over half of its record high last year due to a decline in oil and gas price realizations, although the company's refinery throughput rose to 4.2 million barrels a day, the most since XOM merged with Mobil 24 years ago. The energy giant’s revenue slid 19% year-over-year to $90.76 billion, while non-GAAP earnings per share reached $2.27, falling short of analysts' predictions.

The dwindling profits were influenced by an approximately 60% decrease in natural gas price realizations and a 14% reduction in oil price realizations. The company also reported a 69.9% decline in earnings from its chemical products division due to increased feedstock prices and overproduction.

In the quarter, it returned $8.1 billion to the shareholders, comprising $3.7 billion in dividends and $4.4 billion in share buybacks.

Moreover, XOM announced an increase in its fourth-quarter dividend to $0.95 per share, payable on December 11, honoring its excellent history of shareholder returns. A testament to the company's reputation is its consistent record of paying dividends for 40 uninterrupted years.

Its annual dividend rate of $3.80 per share translates to a dividend yield of 3.60% on the current share prices. The company’s dividend payouts have grown at a CAGR of 1.5% over the past three years and 2.7% over the past five years.

The stock trades lower than the 50-, 100-, and 200-day moving averages, indicating a downtrend. However, Wall Street analysts expect the stock to reach $128.32 in the next 12 months, indicating a potential upside of 21.6%. The price target ranges from a low of $105 to a high of $150.

Institutions hold roughly 60.4% of XOM shares. Of the 3,637 institutional holders, 1,589 have increased their positions in the stock. Moreover, 147 institutions have taken new positions (9,154,521 shares).

For the fiscal fourth quarter ending December 2023, analysts expect its revenue and EPS to be $92.28 billion and $2.20, respectively.

Chevron Corporation (CVX)

Boasting a market cap of over $275 billion, CVX offers administrative, financial management, and technology support services for energy and chemical operations.

The firm's recent $53 billion acquisition of Hess, recognized as one of the largest operators in North Dakota's Bakken shale play, substantiates its massive investment amid the global shift towards cleaner energy. Even though this transaction could slightly increase the region's oil production, industry analysts do not anticipate a revival to its peak pre-pandemic boom days.

Bakken oil production is anticipated to drop to 1.15 million bpd from 2026 and remain stagnant until 2030. A slow decay will follow this due to depleting reserves. It is yet to be ascertained if an infusion of new investments or technological advancements can counteract a longer-term decrease in Bakken output.

CVX also emphasizes the importance of consistent dividend distribution, demonstrating an unwavering commitment to operational diversity, having done so for an impressive 35 consecutive years. This reliability is quite remarkable considering the unpredictable nature of the energy sector.

In 2023, the company paid a dividend of $6.04 per share, which translates to a dividend yield of 4.18% on the current share prices. The company’s dividend payouts have grown at a CAGR of 5.6% over the past three years and 6% over the past five years. Although, it is worth noting that the decline in dividend payout rate over time might adversely influence investors seeking a steady source of passive income.

CVX adopts a moderate approach concerning leverage. During periods with low oil prices, the company can incur debt to finance its capital investment needs and maintain dividend payouts. When energy prices rebound, which historically they always have, the company can offset the debt. This prudent strategy offers reassurance to even the most conservative investors about the integrity of the company's dividend capabilities.

For the fiscal third quarter that ended September 30, 2023, CVX's upstream production segment earnings dipped 38.2% year-over-year to $5.76 billion. However, it increased only 16.6% from the second quarter, despite the substantial increase in oil prices.

Profit in CVX's non-U.S. production segment, accounting for about two-thirds of its total output, declined 37.7% year-over-year but increased about 12% quarterly. Its U.S. production earnings increased 26.4% quarterly but declined 39% year-over-year.

The U.S. net oil-equivalent production was up 20% year-over-year and set a new quarterly record, primarily due to the acquisition of PDC Energy, Inc., which supplemented the quarter's output with an additional 179,000 oil-equivalent barrels per day, and net production increases in the Permian Basin.

The stock trades lower than the 50-, 100-, and 200-day moving averages, indicating a downtrend. However, Wall Street analysts expect the stock to reach $189 in the next 12 months, indicating a potential upside of 30.9%. The price target ranges from a low of $166 to a high of $215.

Institutions hold roughly 71.4% of CVX shares. Of the 3,473 institutional holders, 1,718 have increased their positions in the stock. Moreover, 203 institutions have taken new positions (9,253,853 shares).

For the fiscal fourth quarter ending December 2023, analysts expect its revenue and EPS to come at $54.46 billion and $3.68, respectively.

Considering the oil stocks’ tepid price momentum, mixed analyst estimates, and financials, it could be wise to wait for a better entry point in the stocks.

Is Exxon Mobil (XOM) Gearing up to Become the #1 Energy Stock?


The American shale industry is a testament to the inventive spirit of grassroots capitalist enterprise. This sector was revolutionized by innovative frackers, who introduced groundbreaking methods of horizontal drilling and oil extraction from rock formations.

Pioneer Natural Resources, an industry-leading shale specialist, significantly contributed to this upsurge by boosting domestic oil production from 8 million barrels per day in 2005 to 15 mbpd in 2015, transitioning America from a net oil importer to an exporter.

However, not all major oil companies rushed to capitalize on the shale boom with the same zeal. Global oil giant Exxon Mobil Corporation (XOM) cautiously approached the rich shale territory, such as the Permian basin, due to the reckless expansionism of the wildcatters, consequently burning billions of investors' funds.

However, intentions regarding shale developments from the oil titan have shifted recently. In June, Darren Woods, CEO of Exxon Mobil, announced plans to double the company's shale oil production within a five-year timespan, a goal anticipated to materialize sooner.

On October 11, XOM unveiled its proposed $59.5 billion acquisition of Pioneer Natural Resources, representing one of the most substantial mergers ever seen in the oil industry. A successful merger would boost XOM’s domestic oil production to nearly double overnight, propelling it to the top among American producers. Furthermore, it could catalyze additional consolidation in this still-disjointed industry, potentially establishing American shale producers as the driving force of the global oil market.

But Why Shale?

The Permian Basin, between Texas and New Mexico, is an optimal opportunity for producers aiming to bolster their supply. According to the Federal Reserve Bank of Dallas, the Permian Basin provides about 40% of American oil production and 15% of its natural gas.

The renowned shale deposit boasts substantial infrastructure, is recognized for its high-yield productivity, and possesses significant untapped reserves that add to its appeal in the industry.

The shale industry has gradually transformed into a highly profitable venture in recent years. Enhancements in operational efficiency and a relentless focus on cost curtailment have eliminated wasteful methodologies.

According to JPMorgan Chase, the return on expenditures of American exploration and production, primarily shale-based, effectively produces double the oil volume it did in 2014. The sector’s enterprises have started producing methane, a potent greenhouse gas typically produced in tandem with shale oil.

This strategic shift first came due to regulatory enforcement and was later propelled by the commercial rationale as methane is a component of natural gas. Thus, its salvage not only makes environmental sense but also enhances profitability. Moreover, American shale's development process has proven to be faster, more affordable, and less carbon-intensive than conventional fields.

Major fracking companies have exhibited responsiveness to Wall Street’s appeals for enhanced returns over shale production hikes. The latest fiscal prudence endured during the oil price spike following Russia’s Ukraine invasion in February 2022.

The Acquisition and Its Impact

According to RBC Capital Markets analysts, Pioneer, the Permian oilfield's primary well operator, accounts for 9% of gross production, while XOM ranks fifth with 6%. Pioneer expanded its portfolio through significant acquisitions, such as shale rivals DoublePoint Energy for $6.4 billion in 2021 and Parsley Energy for $7.6 billion in 2020 under CEO Sheffield.

XOM's all-stock acquisition of Pioneer at $253 per share would catapult it to the top position in the largest U.S. oilfield, ensuring a decade of low-cost production. The merger marks XOM's most substantial acquisition since the $81 billion Mobil Oil procurement in 1999.

As of June 30, 2023, XOM maintained a robust cash reserve of approximately $30 billion. The company's decision to proceed with an all-stock deal offers a strategic advantage, significantly alleviating the potential fiscal pressure associated with debt-financed acquisitions. Moreover, when evaluated against its industry peers, XOM's balanced market valuation underscores the strategic prudence of an all-stock purchase.

The merger consolidates Pioneer’s 850,000 net acres in the Midland Basin with XOM’s 570,000 net acres across the Delaware and Midland Basins, creating an unprecedented high-quality undeveloped inventory posture in the U.S. unconventional industry.

The companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian. Once the deal materializes, XOM’s Permian production volume is expected to more than double to 1.3 moebd, based on 2023 estimates and surge to about two moebd in 2027. The strategy involves increasing the output per well by fusing XOM’s technology with Pioneer's cost-effective production methods, which average approximately $10.50 per barrel.

XOM has a strategy of investing to raise production if the oil price and forecast profits are high enough. Rystad’s Alexandre Ramos-Peon, head of shale well research, anticipates the Permian Basin has another 15 to 20 years of high-quality drilling – which could convince XOM to ramp up output.

As XOM asserts, this transaction presents an opportunity for enhanced U.S. energy security by applying top technologies, operational excellence, and financial capability to a crucial domestic supply source and benefitting the American economy and its consumer base.

The deal, slated to close in 2024, would result in four of the largest U.S. oil firms dominating the Permian Basin shale field and its vast infrastructure. The size of this acquisition surpasses Shell's $53 billion BG Group acquisition in 2016, which positioned Shell at the forefront of the global LNG market.

Upon finalizing the sale, CEO Sheffield would receive a $29-million exit package while the other four top Pioneer executives will collectively earn about $42 million in severance payment. Pioneer shareholders will receive 2.3234 shares of XOM for each Pioneer share held.

Let's briefly delve into the key takeaways for investors from this potential acquisition:

Over the past two years, XOM has effectively transformed its financial stability, managing to rise from a period of significant losses and staggering debt. The recovery was accomplished by implementing cost reduction measures, asset liquidation, and capitalizing on escalating energy prices driven by global geopolitical turmoil.

Moreover, XOM's investments in renewable energy and strides toward environmental responsibility have yielded tangible results, evidenced by the record profit of $56 billion achieved two years after a deficit of around $22 billion precipitated by the COVID-19 pandemic.

Given its revitalized financial situation and solid operational foundations, XOM presents an enticing prospect for institutional investors. Notably, several institutions have recently modified their XOM stock holdings. Institutions hold roughly 60.5% of XOM shares. Of the 3,612 institutional holders, 1,564 have increased their positions in the stock. Moreover, 134 institutions have taken new positions (8,794,955 shares).

The oil giant's share price has recovered strongly since its early 2020 slump with plummeting oil and gas prices. It is trading at a surplus to the sector's earnings. Its forward non-GAAP P/E of 11.39x is 9.5% higher than the industry average of 10.40x. However, its forward EV/Sales multiple of 1.24 is 41.8% lower than the industry average of 2.15.

XOM fell short of market expectations and experienced challenges in financial performance in the last reported quarter. However, it remains resilient and focused on strategic initiatives to drive long-term growth and value creation.

Despite experiencing a dip from its record high of $120 following merger news, XOM’s shares now trade below their 100-day and 200-day moving averages of $108.53 and $109.83, respectively, showcasing a downtrend. However, Wall Street analysts expect the stock to reach $126.06 in the next 12 months, indicating a potential upside of 18.4%. The price target ranges from a low of $105 to a high of $150.

XOM anticipates higher crude oil prices to boost its upstream earnings by $900 million to $1.3 billion and higher natural gas prices to supplement $200 million to $600 million to its profits in the third quarter of 2023. This could enable the oil giant to report impressive results for the period, indicating its operating profits for the quarter to lie between $8.3 billion and $11.4 billion.

For the fiscal third quarter of 2023, analysts expect its revenue and EPS to come at $90.03 billion and $2.32, respectively. XOM topped consensus EPS estimates in three of the trailing four quarters.

Bottom Line

The announcement of the merger did not astonish many in the market. However, the essential query that lies ahead is the impact this deal will have on energy markets and whether it will serve as a profitable venture for XOM in the long haul.

Considering XOM's sluggish price trends and mixed analyst predictions and valuation, it could be wise to wait for a better entry point in the stock.

6 Stocks to Invest in if There’s Another Rate Hike

Today, on August 31, the initial jobless claims for the week ending August 26 came in at 228,000, below market expectations of 235,000, thereby registering its lowest reading in four weeks.

This has followed further signs of economic slowdown in the form of JOLTS, which showed an unexpected drop in job openings to below 9 million for the first time since March 2021, the latest consumer confidence index, which came in at 106.1, lower than the previous Dow Jones estimate of 116 which was lower-than-expected addition of 177,000 jobs in August according to private payroll data from ADP, and a downward revision in the GDP growth rate for the second quarter.

However, such disappointing updates have been welcomed by market participants spooked by Fed chair Jerome Powell’s message at Jackson Hole in Wyoming on Friday, August 25.

While it was not as brief as last year’s, it was still equally unambiguous. 2% still remains the non-negotiable target for the inflation rate, and the Central Bank is prepared to raise policy rates further if required and hold them higher for longer until it is confident of sustained price stability.

While the 12-month PCE has since declined to 3% percent as of July from its peak of 7% in June 2022 due to a significant unwinding of the demand-supply imbalance, however, the core PCE, which excludes volatile food and energy prices and includes inflation for goods, housing services, and all other services, came in at 4.3% in July, indicating that there is significantly more ground left to cover through monetary policy tightening.

In such a scenario, despite increased optimism, businesses are expected to remain weighed down by high borrowing costs, and economic activity is expected to remain stifled due to relatively scarce credit.

Moreover, with every increase in benchmark interest rates, a selloff of long-duration fixed-income instruments, such as the 10-year treasury notes, gets triggered, which causes a slump in their market value and a consequent increase in their yields. This also increases the benchmark 30-year mortgage rates, thereby depressing demand and deepening the crisis in which real estate has lately been finding itself.

An increase in borrowing costs would not just raise the cost of servicing the $32.7 trillion national debt; significant markdowns and prices of legacy bonds could crush the loan portfolios of banks that could share the same fate as the Silicon Valley Bank and the First Republic Bank. In this context, S&P's move to downgrade multiple U.S. banks citing ‘tough’ operating conditions hardly comes as a surprise.

Speaking of banks, the Bank of Japan’s policy tweak loosened its yield curve control, sparking widespread shock in the markets. To compound the miseries further, after placing the country on negative watch amid the debt-ceiling standoff at Capitol Hill back in May, Fitch Ratings recently downgraded U.S. long-term rating to AA+ from AAA, citing the erosion of confidence in fiscal management.

While broad expectations are pricing in a rate hike in November after a pause in September’s FOMC meeting, being diligent investors confident enough to increase their stakes in fundamentally strong businesses could be a time-tested method to navigate potential turbulence ahead.
Here are a few which could be worthy of consideration:, Inc. (AMZN)

The global retail giant provides its consumers a wide range of products and services through its online platform and offline supply chains. In addition to reselling merchandise and content offered by third-party resellers, the company also manufactures electronic devices to distribute its service. It operates through three segments: North America, International, and Amazon Web Services (AWS).

The AWS segment consists of global sales of computing, storage, databases, and other services for start-ups, enterprises, government agencies, and academic institutions. Recently, at the AWS Summit in New York, San Francisco-based cloud communication and customer engagement platform Twilio Inc. (TWLO)announced its strategic partnership with the company.

The renewal of vows and strengthening of ties, which seeks to enhance the company’s predictive AI proficiency, has closely followed a vote of confidence from the tech giant in which AMZN announced that it has acquired 1% stake in TWLO earlier in the week with its ownership of 1.77 million shares worth more than $108 million.

During the fiscal 2023 second quarter that ended June 30, AMZN’s net sales increased 11% to $134.4 billion, while its operating income more than doubled to $7.7 billion. Consequently, the behemoth’s net income came in at $6.7 billion, or $0.65 per share, compared to a net loss of $2 billion, or $0.20 per share, during the previous quarter.

Exxon Mobil Corporation (XOM)

XOM is engaged in the energy business through exploration for and production of crude oil and natural gas and the manufacture, trade, transport, and sale of crude oil, natural gas, petroleum products, petrochemicals, and a range of specialty products. The company’s segments include Upstream; Downstream; and Chemicals.

Over the past three years, XOM’s revenue has grown at a 19.8% CAGR. Over the same time horizon, the company’s EBITDA and net income have grown at 50.8% and 93.2% CAGRs, respectively.

On July 13, XOM announced the acquisition of Denbury Inc. (DEN), an experienced developer of carbon capture, utilization, and storage (CCS) solutions and enhanced oil recovery. The acquisition is an all-stock transaction valued at $4.9 billion, or $89.45 per share, based on XOM’s closing price on July 12, 2023.

During the fiscal 2023 second quarter that ended June 30, XOM’s total revenue and other income came in at $82.91 billion. During the same period, the net income attributable to it came in at $7.88 billion, or $1.94 per share.

T-Mobile US, Inc. (TMUS)

Through its flagship brands, T-Mobile and Metro by T-Mobile, TMUS provides mobile communication services in the United States, Puerto Rico, and the United States Virgin Islands.

Over the past three years, TMUS’ revenue has grown at almost 15% CAGR. During the same time horizon, its EBITDA and net income have grown at 19.4% and 31.8% CAGRs, respectively.

On the 5G front, on August 15, TMUS expanded its coverage in Pennsylvania, while on August 17, the company expanded its REVVL lineup with its first-ever tablet and new 5G smartphones.

For the fiscal 2023 second quarter, TMUS’ and postpaid service revenues registered industry-leading growth rates of 2.8% and 5.5%, to come in at $15.7 billion and $12.1 billion, respectively. The company’s adjusted EBITDA increased by 5.7% year-over-year to $7.20 billion during the same period.
Consequently, its net income for the quarter came in at $2.22 billion, or $1.86 per share. With the expectation of adding a net 5.6 to 5.9 million customers compared to the earlier estimate of 5.3 million to 5.7 million, TMUS has revised its core adjusted EBITDA guidance upwards to a range between $28,900 and $29,200.

The Progressive Corporation (PGR)

As an insurance holding company, PGR operates throughout the U.S. through three segments: Personal Lines; Commercial Lines; and Property. The company’s non-insurance subsidiaries generally support its insurance and investment operations.

Over the past three years, PGR’s revenue and total assets have grown at 11.3% and 11.8% CAGRs, respectively. For the fiscal 2023 second quarter that ended June 30, PGR’s total revenue increased by 33.3% year-over-year to $15.35 billion. During the same period, the net income available to common shareholders came in at $335.9 million, or $0.57 per share, compared to the net loss of $549.6 million, or $0.94 per share.

Albemarle Corporation (ALB)

As a global developer, manufacturer, and marketer of specialty chemicals, ALB operates through three segments: Energy Storage, Specialties, and Ketjen.
Given the ALB’s burgeoning lithium mining operations in Latin America coinciding with the exponential increase in demand and price of white gold driven by the imperative of energy transition, the company’s revenue has ballooned at 42% CAGR over the past three years. During the same time horizon, its EBITDA and net income have increased at 61.5% and 107.5% CAGRs, respectively.

On July 19, ALB announced that it had agreed to amend the transaction terms signed earlier this year with Mineral Resources Limited (MALRF). Pending regulatory approvals, under the new agreement, ALB will take 100% ownership of the Kemerton lithium hydroxide processing facility in Australia that is currently jointly owned with MALRF through the MARBL joint venture. ALB will also retain full ownership of its Qinzhou and Meishan lithium processing facilities in China.

The amendment is expected to simplify commercial arrangements further and provide greater strategic opportunities for each company based on its global operations and the evolving lithium market.

On July 18, ALB announced its quarterly dividend of $0.40 per share, payable October 2, 2023, to shareholders of record at the close of business as of September 15, 2023. ALB currently pays $1.60 annually as dividends and has been able to increase its payouts for the past 28 years.

For the fiscal 2023 second quarter that ended June 30, ALB’s net sales increased by 60.2% year-over-year to $2.37 billion, while its adjusted EBITDA increased by 69.2% year-over-year to $1.03 billion. Consequently, the net income attributable to ALB increased by 59.8% year-over-year to $650 million, while its adjusted EPS increased by 112.5% year-over-year to $7.33.

Given the stellar performance, ALB raised its revenue and EPS guidance for the fiscal year to $10.4 - $11.5 billion and $25.00 - $29.50, in line with the current analyst estimates.

Coterra Energy Inc. (CTRA)

As an independent oil and gas company, CTRA is involved in developing, exploring, and producing oil, natural gas, and natural gas liquids (NGLs). The company’s operations are primarily concentrated in three areas: the Permian Basin in west Texas and southern New Mexico; the Marcellus Shale in northeast Pennsylvania; and the Anadarko Basin in the Mid-Continent region in Oklahoma.

Over the past three years, CTRA’s revenue has grown at a 70.9% CAGR. Over the same time horizon, the company’s EBITDA and net income have grown at 88.9% and 113.2% CAGRs, respectively.

During the fiscal 2023 second quarter that ended June 30, CTRA’s operating revenue came in at $1.19 billion, while its adjusted net income came in at $291 million, or $0.39 per share. Given the outstanding operational execution, the company has increased its 2023 BOE and natural gas production guidance by 2% and oil guidance by 3% at the mid-point.