ExxonMobil and Chevron Report Strong Third Quarter Earnings
Oil giants benefit from elevated prices and increased production, surpassing analyst expectations.
ExxonMobil and Chevron announced robust third-quarter financial results Friday, driven by a combination of higher oil and gas prices and increased production volumes. Both companies exceeded analyst estimates, signaling a strong performance in the energy sector.
ExxonMobil reported that its net income more than doubled to $3.72 per share, with adjusted profits reaching $4.23 per share, surpassing the average analyst expectation of $4.12 per share. Revenue for the quarter rose 33% to $113.16 billion, also exceeding forecasts. The company's strong output was bolstered by its operations in Guyana and the Permian Basin, while its U.S. Gulf Coast refineries operated at 100% capacity, achieving near-record diesel production.
Darren Woods, ExxonMobil's chairman and CEO, highlighted the impact of investments, such as the expansion of its Beaumont refinery in Texas, which has increased distillate production by approximately 40% since 2019. The company also announced an increase in its quarterly dividend to $1.07 and initiated a $20 billion stock buyback program.
Chevron, the second-largest U.S. oil company, posted third-quarter earnings of $9.9 billion, or $5.06 per share, on revenue that surged 36% to $67.8 billion. The company's performance included one month of production from Venezuela, where it has a significant investment and recently announced plans to invest $7 billion over the next five years. Chevron's U.S. refineries maintained high utilization rates at 98%, and the company reported record production from its Eastern Mediterranean and Australian assets.
Mike Wirth, Chevron's chairman and CEO, noted efforts to reduce midstream costs in the Bakken region by approximately 50%, enhancing the asset's competitiveness. The company also increased its holdings in the Bakken fields following its acquisition of Hess Corp. last year. Overall capital expenditures for Chevron were lower year-over-year due to reduced spending in the Permian Basin.
The rise in fuel prices has been significant, with diesel prices increasing by 71% to about $6.32 per gallon and regular gasoline up 38% in the past year, according to AAA. Geopolitical factors, including conflicts in Iran and Ukraine, have contributed to the upward pressure on fuel costs.