NEW YORK (TheStreet) -- Shares of both Exxon Mobil (XOM) - Get Report  and Chevron (CVX) are falling this morning after the energy giants reported disappointing financial results for the 2016 second quarter. 

Before the market open, Exxon reported earnings and revenue that missed analysts' estimates, while Chevron posted mixed results. Both companies said that production fell from a year ago.

The results make it increasingly clear that not just the first quarter but the second quarter as well "is where the energy patch hit," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

Crude oil has fallen at least 20% from its 2016 intraday high of $51.67, Cramer pointed out.

He noted that many energy companies are modeling $60 a barrel to maintain dividends.

"If oil reverses, it can be fine," but the sector is in the midst of the worst downturn ever, Cramer mentioned.

He did add that oilfield services company Schlumberger (SLB) believes the oil cycle has bottomed. Investors should pay attention to Schlumberger's projections since the company saw the downturn coming ahead of everyone else, as signaled by its early layoffs. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Exxon Mobil's strengths such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.

You can view the full analysis from the report here: XOM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Image placeholder title