Exxon, Chevron profits beat forecasts as refining margins surge during wars
XOM•Exxon and Chevron beat quarterly profit forecasts as surging refining margins boosted earnings. Exxon reported adjusted earnings per share of $4.23 and Chevron $5.28; both used excess cash to reduce debt rather than significantly increase shareholder returns.
1. Refining boosts earnings
Exxon and Chevron beat analyst expectations for quarterly profit as higher refining margins lifted fuel-making earnings. Exxon earned more from refining than from exploration and drilling for the first time in at least six years, while Chevron’s downstream earnings reached their highest level in that period.
2. Plans to expand supply
Exxon said it is investing in its refineries and expects US distillate production to grow by another 100,000 barrels per day, without specifying a timeline. Chevron said it could increase capacity at its Pascagoula refinery by 7% by the end of the decade. Chevron Vice Chairman Mark Nelson said margins may remain elevated into next year.
3. Debt and shareholder returns
Exxon reduced debt by $8 billion in the quarter and plans to maintain its approach to dividends; it raised its fourth-quarter dividend by 4 cents. Chevron has cut net debt by nearly $14 billion since the end of 2025. Exxon said it would repurchase $20 billion of shares in 2027, while Shell plans $5 billion in buybacks over the next three months and BP plans an early repayment of its outstanding $5 billion Deepwater Horizon liability.
