Chevron, Exxon Post Massive Q3 Profits on Refining Strength

Chevron and ExxonMobil reported massive third-quarter profits Friday, driven by record-breaking refining margins as global capacity remains constrained by geopolitical conflict, according to reports from OilPrice.com.

Chevron's profit nearly tripled to $9.9 billion, or $5.06 per share, up from $1.82 a share a year ago, OilPrice.com reported. ExxonMobil's earnings more than doubled to $15.4 billion, or $3.72 per share. Both companies' adjusted earnings comfortably beat Wall Street estimates.

The staggering profits were powered by downstream operations. Chevron's U.S. refining profits jumped to $3.59 billion from $638 million a year earlier, despite fuel sales holding steady at 1.3 million barrels per day. Its U.S. refineries ran at 98% capacity. Exxon's energy products business earned an adjusted $9.05 billion, up sharply from $4.1 billion the prior quarter, with its U.S. Gulf Coast refineries operating at 100% utilization.

OilPrice.com attributed the refining windfall to global capacity shortages, noting that "roughly 10% of global fuel-making capacity [is] sidelined by the Iran war and Ukrainian attacks on Russian refineries." This has left remaining plants like those operated by the majors to supply a tight market, particularly for diesel.

Upstream performance was mixed. Higher crude prices, with Brent averaging $97 per barrel versus $69 a year earlier, helped Chevron's upstream earnings climb to $5.7 billion from $3.3 billion. However, its worldwide production fell to 3.98 million barrels of oil equivalent per day. Exxon's upstream adjusted earnings fell to $7.3 billion from $9.2 billion in Q2 as crude prices eased, though production held near 4.5 million boe/d. Chevron noted its U.S. production remained above 2 million boe/d for the fifth consecutive quarter.

Both companies generated enormous cash flow. Chevron produced $16 billion in operating cash flow and $12 billion in free cash flow, using it to reduce debt by $3.5 billion and maintain $2.5 billion in share repurchases. Exxon generated $25.7 billion in operating cash flow, returning $9.4 billion to shareholders and announcing plans for another $20 billion in share repurchases in 2027.

Looking ahead, ExxonMobil CEO Darren Woods told CNBC the company plans to invest more than $100 billion over the next few years to augment global energy supplies, Rigzone reported. Chevron is also planning additional investment, with its joint ventures in Venezuela expecting to spend $7 billion over the next five years, according to OilPrice.com.

For Bakken operators and North Dakota, the results highlight a market where refining bottlenecks are creating historic profit margins for integrated majors with U.S. refinery capacity. While upstream earnings benefited from higher oil prices, the majors' focus on shareholder returns and large-scale, long-cycle capital investments underscores the financial power concentrated in the largest players as they navigate a volatile geopolitical landscape.