Exxon, Chevron Post $26.5B Q2 Profit, Focus on Debt

ExxonMobil and Chevron reported a combined $26.5 billion in second-quarter profit, a windfall driven by high production and refining margins amid a global market scrambled by conflict, according to OilPrice.com. The results are drawing political ire in Washington as national gasoline prices remain high.

Chevron reported a record net income of $12.2 billion, nearly five times its year-ago profit. Exxon earned $14.5 billion, double its Q2 2025 result and its best quarter since oil prices soared after Russia's invasion of Ukraine, OilPrice.com reported. The companies attributed the surge to producing more oil, refining more fuel, and selling it into a tight market exacerbated by the Iran war, which disrupted Gulf production and tanker traffic through the Strait of Hormuz.

For Bakken operators and royalty owners, the performance of these integrated majors underscores the complex global dynamics supporting strong crude prices. Chevron's global production reached 4 million barrels of oil equivalent per day, aided by its acquisition of Hess Corporation, while its U.S. output hit a record 2 million bpd. Exxon produced 4.5 million bpd globally, with its Permian output also reaching a record, according to OilPrice.com.

However, the companies indicated the current price problem is shifting from crude oil to refined products. Exxon CFO Neil Hansen said the bigger issue is "the shrinking availability of the products made from it," OilPrice.com reported. Refining profits skyrocketed, with Chevron's jumping to $4.9 billion from $737 million a year earlier, and Exxon's earning $5.5 billion after a loss in the previous quarter.

Despite the blowout profits, Rigzone reported that both ExxonMobil and Chevron are steering this cash toward debt reduction rather than significantly increasing share buybacks. This conservative financial approach may signal a focus on strengthening balance sheets amidst market volatility and political uncertainty.

That political pressure is mounting. Former President Donald Trump, who has called for gasoline at $2.25 per gallon against a national average of $4.11, has ordered a Justice Department investigation into alleged price gouging, OilPrice.com reported. An export ban is also being discussed. Chevron has warned that restricting exports would discourage investment and eventually reduce market supply.

For North Dakota, the majors' record production and profits reflect a favorable price environment for Bakken crude. Yet, the intense focus on refining margins and potential policy responses, like an export ban, introduces risks. Any policy that disrupts the flow of U.S. crude or products to global markets could impact Bakken wellhead economics and future investment decisions by operators across the basin.