Low oil prices are still inflicting pain. Earnings even fell at their refinery units, which usually fare well in times of low oil prices. Jeanne Yurman reports.
Big Oil reporting a big drop in quarterly profits. Low crude prices slammed both ExxonMobil and Chevron. Earnings at Chevron's upstream business, which finds and produces oil and natural gas, jumped. But profit plunged more than fifty percent at its downstream or refining unit. At Exxon, earnings fell across across the board. Both companies cut costs to help offset weak oil prices. But it was a tale of two stocks on Friday. Chevron's stock rose sharply, making it one of the Dow's top gainers. Exxon's dropped. Kevin Kelly of Recon Capital. (SOUNDBITE) KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL PARTNERS, (ENGLISH) SAYING: "It's a show me what have you done for me lately. And we've seen that with Chevron, but not with Exxon. And Exxon has had a check or pass. Remember when natural gas got so high, they bought XTO at the high of the market? So, there is not a lot of faith in the management. They've given them a couple of quarters, but one of the biggest things that investors focus on is that dividend, and it's sacrosanct to the shareholders, and whether it can grow." The earnings news comes as oil prices have slipped below $50 a barrel and recorded the biggest weekly loss since mid-September. Weighing on it: investors have doubts whether OPEC will follow through on plans to cut output to address excess supply.