ExxonMobil and Chevron Post Record Profits as Fuel Prices Spike

ExxonMobil and Chevron reported quarterly earnings on Friday that far surpassed market expectations. The two largest U.S. oil companies posted strong financial results amid rising energy costs and record production levels. Investors reacted positively to the news, with both stocks gaining value in early trading.

ExxonMobil reported a net income of $3.72 per share for the third quarter, more than doubling its previous earnings. On an adjusted basis, profit reached $4.23 per share, beating the average analyst estimate of $4.12. Revenue for the three months ended in September increased by 33% to $113.16 billion. The company based in Spring, Texas, raised its quarterly dividend to $1.07 and announced a stock buyback plan worth $20 billion.

Chevron, headquartered in Houston, earned $9.9 billion, or $5.06 per share, during the same period. Revenue surged 36% to $67.8 billion, easily topping estimates. The company noted that its results included one month of production from Venezuela, where it is making a major investment. Chevron’s U.S. refineries operated at 98% utilization, processing over 1 million barrels of crude oil per day.

Higher fuel prices played a central role in these earnings. Diesel currently costs about $6.32 per gallon, a 71% increase since last year according to AAA. The price surpassed $6 per gallon last month, setting a record. Regular gasoline has also risen by about 38% in the past year. Crude oil prices remained high, with both Brent and U.S. benchmark crude exceeding $100 per barrel on Friday.

Production levels contributed significantly to the companies' performance. ExxonMobil’s U.S. Gulf Coast refineries ran at 100% utilization. Diesel production in the region reached the second-highest level on record. Chevron set production records at its Eastern Mediterranean and Australian assets. The company also reported lower capital expenditures than a year ago due to reduced spending in the Permian Basin.

Geopolitical conflicts and supply chain disruptions have driven up energy costs. Wars in Iran and Ukraine have increased fuel expenses. The conflict with Iran has impeded shipping through the Strait of Hormuz, a key route for a fifth of the world's oil and natural gas. In response, the Group of Seven announced plans to release 100 million barrels of oil and fuel products in coming weeks. This follows a March agreement by International Energy Agency members to release 426 million barrels to stabilize the market.

President Donald Trump has sought to lower energy costs ahead of the U.S. midterm elections. Earlier this month, he announced a deal for the U.S. to obtain diesel from Russia. Congress has criticized the agreement as supporting Russia’s war against Ukraine and violating existing laws. Despite the pushback, the first tanker carrying Russian diesel to the United States set sail a week ago.

ExxonMobil Chairman and CEO Darren Woods noted that investments in refinery expansions have boosted distillate production by approximately 40% since 2019. Chevron Chairman and CEO Mike Wirth said the company signed agreements to reduce Bakken midstream costs by about 50%. Chevron increased its holdings in North Dakota and Montana after its $53 billion acquisition of Hess Corp last year. Exxon shares rose 2.8% in early trading, while Chevron stock climbed 1.8%.