Big Oil's spending caution speaks louder than its profits: Bousso
XLE•Five major Western oil companies reported combined third-quarter net profits of $56 billion, but largely maintained their cautious spending plans. Their combined net debt fell to $117 billion, while buybacks totaled $12.3 billion.
1. Profits surge
BP, Chevron, Exxon Mobil, Shell and TotalEnergies reported combined net profits of $56 billion in the third quarter, driven by higher oil and gas prices, strong refining margins and trading results. BP posted a record quarterly profit of $8.5 billion; the other majors generally recorded their second-strongest quarters on record.
2. Cash goes to balance sheets
Despite the improved market conditions, the companies have mostly directed excess cash toward debt reduction and share repurchases rather than major new spending. Their combined net debt fell to $117 billion in the third quarter from $204 billion in the first, while buybacks totaled $12.3 billion.
3. Spending plans remain cautious
Shell lowered its 2026 capital spending guidance by $1 billion to $23 billion-$25 billion, while Chevron expects spending at the lower end of its $18 billion-$19 billion range. The article says executives remain wary of treating elevated prices as the start of a new supercycle, with uncertainty over the energy transition and long-term demand still weighing on their outlook.
