ExxonMobil and Chevron top Q3 estimates on higher prices and strong
output
[October 31, 2026] By
MICHELLE CHAPMAN
ExxonMobil and Chevron both reported better than expected quarterly
results Friday as the oil majors benefited from higher prices and record
production.
Besides the disruption caused by the wars in Iran and Ukraine that have
driven up the cost of fuel, Exxon is also seeing strong production in
its fields in Guyana and the Permian Basin in the Southwest. Chevron
said its results include one month of production in Venezuela where it’s
making a big investment.
Utilization at Exxon's U.S. Gulf Coast refineries was at 100%, and U.S.
Gulf Coast diesel production was at the second-highest on record.
The price of diesel, currently about $6.32 per gallon, is up 71% since
last year, according to AAA. Diesel surpassed $6 last month — a record.
Regular gasoline is up about 38% in the past year as well. To that end,
some state officials have been offering gas tax holidays and other
measures to ease costs.
Pain at the pump
The cost of crude oil — the main ingredient in gasoline as well as
diesel — has been volatile amid ongoing uncertainty about the war's
future. The conflict with Iran has impeded most shipping through the
Strait of Hormuz, a narrow waterway that previously served as a delivery
route for a fifth of the world’s oil and natural gas.
Both Brent crude and benchmark U.S. crude were at over $100 a barrel on
Friday. Brent is still near the high end of its range since the war with
Iran began. The highest price for the most actively traded contract in
the market for Brent crude since then is nearly $120, reached in March.
At the beginning of the month, the Group of Seven wealthy democracies
announced that they planned to release 100 million barrels of oil and
fuel products in the coming weeks, starting with “substantial” amounts
of diesel.
The release follows on from a March announcement that International
Energy Agency member countries would release 426 million barrels of oil
and products to stabilize the oil market. European Union countries
committed about 92 million barrels, a promise weighted toward refined
products made from crude such as diesel.
President Donald Trump has been trying to tamp down soaring energy costs
ahead of the U.S. midterm elections. As part of those efforts, he
announced earlier this month that the U.S. struck a deal to obtain
diesel from Russia. Congress has criticized the deal as fueling Russia’s
war against Ukraine, violating existing U.S. laws and drawing the U.S.
closer to Russia. Even as Congress has tried to push back, the first
tanker carrying Russian diesel to the United States set sail a week ago.
[to top of second column] |
A sign shows the price of regular gasoline at $5.19 per gallon at a
Mobil gas station, April 29, 2026, in Portland, Ore. (AP Photo/Jenny
Kane, File)
 Results beat Wall Street
expectations
Darren Woods, ExxonMobil chairman and CEO, noted that investments
such as the expansion of its Beaumont refinery in Texas have
contributed to an increase in its distillate production by
approximately 40% since 2019.
For the third quarter, net income more than doubled to $3.72 per
share. On an adjusted basis, profit totaled $4.23 per share, easily
topping the average analyst estimate of $4.12 per share.
Revenue during the three months ended in September rose 33% to
$113.16 billion, also beating estimates.
The Spring, Texas-based company also raised its quarterly dividend
to $1.07 and set a $20 billion stock buyback plan.
Houston-based Chevron said it earned $9.9 billion, or $5.06 per
share, during the third quarter, as revenue surged 36% to $67.8
billion. Its results handily topped estimates.
Crude utilization at Chevron's U.S. refineries totaled 98%. Those
refineries processed more than 1 million barrels of crude oil per
day. The company said it set production records at its Eastern
Mediterranean and Australian assets.
Chevron, the second-largest U.S. oil company, has had a presence in
Venezuela since 1923. Last month it announced it will invest $7
billion over the next five years in Venezuela. It said Friday that
following an accounting-related change during the quarter, it’s now
including those results.
Overall capital expenditures during the quarter were lower compared
with a year ago because it spent less in the Permian Basin.
Mike Wirth, Chevron’s chairman and CEO, said that the company signed
agreements to reduce Bakken midstream costs by about 50%,
strengthening the asset’s competitiveness. Chevron increased its
holdings in the Bakken fields in North Dakota and Montana following
its $53 billion acquisition of Hess Corp. last year.
Shares of Exxon rose 1.3% in morning trading. The stock is up 64% in
the past 12 months. Chevron's stock climbed 1.8%.
All contents © copyright 2026 Associated Press. All rights reserved |
