ExxonMobil and Chevron beat forecasts on record output

ExxonMobil and Chevron both exceeded Wall Street expectations in their third-quarter reports released Friday, a performance driven by surging fuel prices and record production levels. The results come as the ongoing conflicts in Iran and Ukraine continue to inflate energy costs across the market.

ExxonMobil, based in Spring, Texas, reported that its net income more than doubled to $3.72 per share. On an adjusted basis, profit reached $4.23 per share, surpassing the average analyst estimate of $4.12. Revenue for the three months ended in September climbed 33% to $113.16 billion. The company also increased its quarterly dividend to $1.07 and authorized a $20 billion stock buyback program.

CEO Darren Woods attributed the gains to strong operations in Guyana and the Permian Basin. He noted that the expansion of the company’s Beaumont refinery in Texas has boosted distillate production by approximately 40% since 2019. Utilization at Exxon’s U.S. Gulf Coast refineries hit 100%, with diesel production reaching the second-highest level on record.

Chevron, headquartered in Houston, reported earnings of $9.9 billion, or $5.06 per share. Revenue jumped 36% to $67.8 billion. The company said its results now include one month of production from Venezuela, where it announced a $7 billion five-year investment plan last month. Chevron also set production records at its Eastern Mediterranean and Australian assets.

Mike Wirth, Chevron’s chairman and CEO, said the company signed agreements to cut Bakken midstream costs by about 50%. This move strengthens the competitiveness of the asset, which Chevron expanded following its $53 billion acquisition of Hess Corp. last year. Crude utilization at Chevron’s U.S. refineries stood at 98%, while capital expenditures fell year-over-year due to reduced spending in the Permian Basin.

Consumer fuel prices reflect the strength in the sector. According to AAA, the price of diesel is currently about $6.32 per gallon, a 71% increase from last year. Regular gasoline is up roughly 38% over the same period. In premarket trading, Exxon shares rose 1.9%, while Chevron shares gained 1.1%.