ExxonMobil and Chevron both beat analyst expectations for third-quarter profit on Friday, October 30, as soaring refining margins lifted earnings from their fuel-making businesses to rival — and in Exxon’s case exceed — their upstream segments.
The results
Exxon reported third-quarter net income of $15.4 billion, or $3.72 per share, and adjusted earnings of $4.23 per share, 10 cents above the average analyst estimate; revenue rose 33% to $113.16 billion. Chevron reported net income of $9.9 billion, or $5.06 per share, and adjusted earnings of $5.28 per share, 35 cents above expectations; revenue rose 36% to $67.8 billion. Exxon called the quarter its fourth-highest profit in its 156-year history; Chevron likewise notched its fourth-highest quarterly profit in company history.
Refining drove the beat
Exxon’s refining division earned a record $9.05 billion in the quarter, almost five times a year earlier, and for the first time in at least six years Exxon earned more from refining than from exploration and drilling. Chevron’s refineries earned $4.93 billion, also a record and about four times a year earlier, with US refinery throughput above 1 million barrels per day. Reuters attributed the margin surge to higher gasoline and diesel prices during the US-Israeli war with Iran and the Russia-Ukraine war, which disrupted global energy markets. Shell, TotalEnergies and BP also topped third-quarter estimates earlier in the week; combined adjusted net income for the five Western supermajors was reported at $56.3 billion — attribute that combined figure to the tally reported, not to either company alone.
What they did with the cash
Both US majors used the windfall mainly to pay down debt and strengthen balance sheets rather than significantly raising dividends or buybacks. Exxon reduced debt by $8 billion in the quarter, raised its fourth-quarter dividend by 4 cents to $1.07, and pledged to maintain $20 billion in annual buybacks, with dividends raised for a 44th consecutive year. Chevron cut net debt by nearly $14 billion from the end of 2025 and held quarterly buybacks at $2.5 billion, the low end of its full-year guidance range.
What to watch
Whether refining margins hold if fuel prices ease, and how the majors balance debt reduction against shareholder returns in the fourth quarter. No new dividend or buyback increase beyond those stated above should be claimed.
Frequently asked questions
What did Exxon earn in Q3?
$15.4bn net income, $4.23 adjusted per share.
What did Chevron earn?
$9.9bn net income, $5.28 adjusted per share.
Why did refining surge?
Higher fuel prices and disrupted global energy markets.
