CVX, XOM Stocks In Spotlight Ahead Of Q4 Earnings As US Reportedly Greenlights License To Operate In Venezuela

Heading into earnings, Chevron and Exxon are on the investors’ radar, following a hectic January.

• In early January, the U.S. captured Venezuelan President Nicolas Maduro, and U.S. oil stocks drew increased investor and retail interest as Trump expressed his interest in sending these companies to operate in the country.
• On Thursday, the Trump administration reportedly gave a general license expanding the ability of oil companies to operate in Venezuela.
• Bank of America said that the removal of Maduro in Venezuela and the unrest in Iran have lifted front-month crude prices.

Shares of Chevron Corp and ExxonMobil have soared in January on the back of U.S. President Donald Trump’s plan to push American oil giants to rebuild Venezuela’s energy infrastructure, but were in the red during overnight trading as investors await comments regarding progress on Venezuelan ambitions.

In early January, the U.S. captured Venezuelan President Nicolas Maduro, and U.S. oil stocks drew increased investor and retail interest as Trump said that he would be sending large American oil companies to Venezuela to start making money for the country, adding that they would be reimbursed.

Shares of Chevron were down 1.4% in overnight trading and ExxonMobil stock fell over 2% in premarket trading. 

Chevron stock has gained over 12% so far this year, while ExxonMobil shares have jumped nearly 17% for the same period. Both companies are on track to record their best year since 2022.

US Gives Green Signal For Venezuela Operations

On Thursday, the Trump administration reportedly gave a general license expanding the ability of oil companies to operate in Venezuela. Bloomberg News reported that the Treasury Department’s license will include several activities that are required to export, sell, store, and market Venezuelan crude, along with shipping and logistical help.

According to CNN, earlier on Thursday, Venezuelan lawmakers approved a change to a law aimed at making it easier for foreign companies to participate in the South American country’s oil industry.

CNN reported that the reform was backed by acting President Delcy Rodríguez and will open the Venezuelan oil industry to foreign companies, allowing them to operate oil fields at their own risk and cost.

Earnings Preview: What To Expect?

Chevron is expected to post quarterly revenue of $48.23 billion and earnings per share of $1.50, according to data compiled by Stocktwits. Wall Street estimates ExxonMobil to report fourth-quarter revenue of $77.98 billion and profit of $1.68 per share.

Bank of America raised its price target on Chevron to $188 from $180 and said that the removal of Maduro in Venezuela and unrest in Iran have lifted front-month crude prices. The firm lifted its price target on Exxon Mobil to $135 from $129, according to TheFly.

How Are Stocktwits Users Reacting?

Retail sentiment on Chevron and ExxonMobil remained unchanged in the ‘bearish’ territory compared to a day ago, with message volumes at ‘low’ and ‘normal’ levels, respectively, according to data from Stocktwits.

A user on Stocktwits said the current overnight dip should be bought.

Shares of Chevron have gained nearly 15% in the last 12 months, and ExxonMobil stock has jumped 32% during the same period.

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