ExxonMobil and Chevron report record profits as fuel costs climb

Major U.S. oil producers posted their highest quarterly earnings in years this week.

ExxonMobil and Chevron both beat financial forecasts on Friday, citing elevated commodity prices and strong production volumes. The results reflect a market environment shaped by global conflicts in Iran and Ukraine, which have increased fuel costs for consumers.

ExxonMobil reported net income of $3.72 per share for the third quarter, more than doubling its previous figure. Adjusted profit reached $4.23 per share, surpassing the average analyst estimate of $4.12. Revenue rose 33% to $113.16 billion. The company attributed its performance to full utilization of U.S. Gulf Coast refineries and record diesel output. According to AAA data, the price of diesel has climbed 71% to roughly $6.32 per gallon over the past year, while regular gasoline is up 38%.

ExxonMobil Chairman and CEO Darren Woods stated that refinery expansions, including in Beaumont, Texas, have boosted distillate production by approximately 40% since 2019. The board also increased the quarterly dividend to $1.07 and authorized a $20 billion stock buyback program. In premarket trading, Exxon shares gained 1.9%, extending a 64% rise over the last 12 months.

Chevron reported earnings of $9.9 billion, or $5.06 per share, with revenue surging 36% to $67.8 billion. The Houston-based firm said crude utilization at its U.S. refineries reached 98%. Production records were set at assets in the Eastern Mediterranean and Australia. Chevron also began including results from Venezuela, where it announced a $7 billion investment plan over the next five years last month.

Mike Wirth, Chevron’s chairman and CEO, noted that the company signed agreements to cut Bakken midstream costs by about 50%. This move aims to improve the competitiveness of its North Dakota and Montana holdings, which were acquired through the $53 billion purchase of Hess Corp. last year. Chevron’s capital expenditures fell year-over-year due to reduced spending in the Permian Basin. Chevron shares rose 1.1% in premarket trading.

The earnings reports arrive as consumers face higher costs at the pump. Exxon’s Gulf Coast diesel production hit the second-highest level on record, a direct response to tight supply and high demand. Both companies credited their financial strength to operational efficiency and favorable pricing conditions in the current quarter.