Big Oil's spending caution speaks louder than its profits: Bousso
XLE•Five major oil companies reported combined third-quarter net profits of $56 billion, but largely kept spending plans unchanged and directed excess cash toward debt reduction and share buybacks. Shell cut its 2026 capital spending guidance by $1 billion to $23 billion-$25 billion.
1. Profits surge
BP, Chevron, Exxon Mobil, Shell and TotalEnergies reported combined third-quarter net profits of $56 billion, supported by higher oil and gas prices, strong refining margins and trading results. BP posted a record quarterly profit of $8.5 billion, while the other majors generally had their second-strongest quarter on record.
2. Cash goes to balance sheets
The companies have mostly maintained a conservative approach to spending, using excess cash to strengthen balance sheets and repurchase shares. Their combined net debt fell to $117 billion in the third quarter from $204 billion in the first quarter, while buybacks totaled $12.3 billion.
3. Spending plans hold
Shell lowered its 2026 capital spending guidance by $1 billion to $23 billion-$25 billion, and Chevron expects 2026 spending at the lower end of its $18 billion-$19 billion range. The article says executives remain cautious about the industry's long-term outlook despite elevated prices, with uncertainty around the energy transition and future supply and demand.
