ExxonMobil and Chevron Post Record Q3 Profits on $6 Diesel Prices

ExxonMobil and Chevron reported stronger than expected third-quarter earnings on Friday, driven by rising fuel prices and record production levels.

The results for both companies reflect the impact of ongoing conflicts in Iran and Ukraine, which have increased the cost of fuel. Exxon also cited strong output from its operations in Guyana and the Permian Basin. Chevron’s figures now include one month of production from its renewed operations in Venezuela.

ExxonMobil saw its net income for the quarter more than double to $3.72 per share. Adjusted profit reached $4.23 per share, exceeding the average analyst estimate of $4.12. Revenue for the three months ended in September increased 33% to $113.16 billion.

The company’s U.S. Gulf Coast refineries operated at 100% utilization. Diesel production in that region hit the second-highest level on record. ExxonMobil chairman and CEO Darren Woods noted that investments, including the expansion of the Beaumont refinery in Texas, have increased distillate production by approximately 40% since 2019. The company raised its quarterly dividend to $1.07 and announced a $20 billion stock buyback plan.

Chevron reported third-quarter earnings of $9.9 billion, or $5.06 per share. Revenue surged 36% to $67.8 billion. Crude utilization at its U.S. refineries reached 98%, processing more than 1 million barrels of crude oil daily. The company set production records at its assets in the Eastern Mediterranean and Australia.

Chevron has maintained a presence in Venezuela since 1923 and announced last month that it will invest $7 billion there over the next five years. Chairman and CEO Mike Wirth stated that the company signed agreements to cut Bakken midstream costs by about 50%. Chevron increased its holdings in the Bakken fields in North Dakota and Montana following its $53 billion acquisition of Hess Corp. last year.

The surge in earnings coincides with high consumer fuel prices. Diesel is currently priced at about $6.32 per gallon, up 71% since last year. Regular gasoline has risen 38% over the same period. Both Brent crude and benchmark U.S. crude traded above $100 per barrel on Friday. The Group of Seven nations announced earlier this month that they will release 100 million barrels of oil and fuel products in the coming weeks.

ExxonMobil shares rose 1.3% in morning trading, extending a 64% gain over the past 12 months. Chevron stock climbed 1.8%.