Exxon, Chevron Beat Estimates as Refining Surges — SkimNews
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- ExxonMobil reported adjusted third-quarter earnings per share of US$4.23, while Chevron earned US$5.28 on an adjusted basis; both beat estimates as refining margins lifted downstream profits to rival upstream results, and their shares rose 2% and 1%, respectively, in pre-market trading.
- ExxonMobil earned more from refining than from upstream for the first time in at least six years, while Chevron’s third-quarter downstream earnings reached their highest level over the same period.
- Strait of Hormuz was effectively closed, while attacks on refineries in Saudi Arabia and Russia knocked out fuel-making capacity; the disruptions sent gasoline and diesel prices higher as Exxon and Chevron ran U.S. refineries near full rates.
- ExxonMobil said refinery investments will grow U.S. distillate output by another 100,000 barrels per day, though it gave no timeline; Chevron separately identified efficiency opportunities at its U.S. Gulf refineries and 7% potential capacity growth at Pascagoula by decade-end.
- ExxonMobil cut debt by US$8 billion in the third quarter and said it would repurchase US$20 billion of shares in 2027, unchanged from the prior two years; Chevron cut net debt by nearly US$14 billion from end-2025, with both prioritizing balance sheets over larger dividends or buybacks.
- Trump considered a diesel export ban in September before saying in early October he would not impose it, as high gasoline and diesel costs became a political flashpoint ahead of Tuesday’s U.S. midterm elections.
- Chevron said spot prices for benchmark Brent crude swung from US$68 to US$132 per barrel during the third quarter, underscoring the volatility of the energy market.
Why it matters: Exxon and Chevron shareholders are the immediate beneficiaries of the refining boom, with adjusted earnings of US$4.23 and US$5.28 per share and pre-market gains of 2% and 1%. The cash is also strengthening balance sheets, with US$8 billion in Exxon debt reduction and nearly US$14 billion at Chevron, rather than funding larger dividends or buybacks.
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