Chevron and Exxon beat earnings forecasts as refining profits surge on high diesel prices
Chevron and Exxon refineries run at full capacity as US refiners ramp up to fill supply gap after Ukraine and Iran bomb refineries in Russia and Middle East
Chevron and ExxonMobil reported sharply higher third-quarter profits on Friday, beating Wall Street expectations, as their United States refineries ran at full capacity to capitalise on high diesel fuel prices.
Chevron's net income rose nearly 200 percent to $9.9 billion, or $5.06 a share, from $3.5 billion a year earlier. Adjusted earnings of $5.28 a share beat the $4.89 analysts had expected, on revenue of $67.8 billion against forecasts of $61.6 billion.
Exxon's profit doubled to $15.4 billion, or $3.72 a share, from $7.5 billion in the same period of 2025. Adjusted earnings of $4.23 a share topped the $4.08 forecast, with revenue of $113.2 billion compared with expectations of $103.1 billion.
Diesel prices have surged globally as Ukraine and Iran bombed refineries in Russia and the Middle East, while US refiners ramped up production to fill the supply gap.
Chevron's US refineries processed a record amount of crude at just above 1 million barrels per day, running at 98 percent capacity, with diesel and jet fuel yields up more than 10 percent. Profit from its refining division surged more than 300 percent to $4.9 billion. Exxon's Gulf Coast refineries operated at full capacity with their second-highest diesel production on record, and its refining unit earned about $7.2 billion in the quarter, outpacing its production business at about $7.1 billion.
Chevron's output declined slightly to 3.9 million barrels per day, down from about 4 million a year earlier, with the decline in its international segment, partly due to the Middle East conflict. Exxon's production for the year so far is about 4.5 million barrels per day, down more than 2 percent from nearly 4.7 million in the first nine months of 2025.
Chevron shares were up about 2 percent in premarket trading and Exxon was trading about 1.5 percent higher.
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Adjusted earnings per share in Q3: actual vs. analysts' expectations
US$ per share
Source: CNBC
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Analysis
Why This Matters
The results show how refinery attacks in Russia and the Middle East are reshaping global fuel markets, with US refiners capturing outsized profits from the supply gap.
Higher diesel prices and strong refining earnings can feed into fuel costs for transport, farming and industry, affecting consumers and businesses.
The earnings beats and the share price reaction signal that investor expectations for oil majors remain tied to geopolitical disruptions to refining capacity.
Background
Chevron and ExxonMobil are two of the world's largest integrated oil companies, combining crude production with refining and fuel sales. Refining margins, the difference between what crude costs and what refined fuels sell for, drive earnings in that segment and are highly sensitive to supply disruptions. The current surge reflects attacks on refineries in Russia and the Middle East, which have reduced competing supply and pushed diesel prices higher, while US refineries have the capacity to fill the gap.
What to Watch
Whether diesel prices stay elevated and whether further strikes on refineries in Russia or the Middle East tighten supply again.
Whether US refineries can sustain record run rates without maintenance-related outages in coming quarters.
Whether the Middle East conflict continues to weigh on Chevron and Exxon's international crude production, which declined in the period.
12 claims in this story checked against 1 source: 9 supported.
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SupportedChevron and Exxon beat earnings forecasts as refining profits surged on high diesel prices.US Top News and Analysis: “Chevron and Exxon beat earnings expectations as refining profits soar on high diesel fuel prices.”
Partly supportedChevron and Exxon refineries ran at full capacity.US Top News and Analysis: “Chevron's U.S. refineries processed record amounts of crude oil at just above 1 million barrels per day, as the facilities ran at 98% capacity.”
SupportedUkraine and Iran bombed refineries in Russia and the Middle East, and U.S. refiners ramped up production to fill the supply gap.US Top News and Analysis: “Diesel prices have surged globally as Ukraine and Iran have bombed refineries in Russia and the Middle East. U.S. refiners have ramped up production to fill the supply gap.”
SupportedChevron’s net income rose nearly 200% to $9.9 billion, from $3.5 billion a year earlier.US Top News and Analysis: “Chevron's net income surged nearly 200% to $9.9 billion, or $5.06 a share, compared to $3.5 billion, or $1.82 a share, in the same period last year.”
SupportedChevron’s adjusted earnings of $5.28 a share beat the $4.89 forecast.US Top News and Analysis: “When adjusted for one-time items, it reported earnings of $5.28 per share, soundly beating Wall Street's expectations of $4.89.”
SupportedChevron revenue was $67.8 billion, compared with a $61.6 billion forecast.US Top News and Analysis: “Chevron's revenue: $67.8 billion, vs. $61.6 billion expected”
SupportedExxon’s profit doubled to $15.4 billion, from $7.5 billion in the same period of 2025.US Top News and Analysis: “ExxonMobil's profits doubled to $15.4 billion, or $3.72 a share, compared to $7.5 billion, or $1.76 a share, in the same period in 2025.”
SupportedExxon’s adjusted earnings of $4.23 a share topped the $4.08 forecast.US Top News and Analysis: “Exxon's earnings per share: $4.23 adjusted, vs. $4.08 expected”
SupportedExxon revenue was $113.2 billion, compared with a $103.1 billion forecast.US Top News and Analysis: “Exxon's revenue: $113.2 billion, vs. $103.1 billion expected”
Partly supportedChevron’s diesel and jet fuel yields rose more than 10%.US Top News and Analysis: “Diesel and jet fuel yields rose more than 10%, the company said.”
SupportedChevron’s refining division profit surged more than 300% to $4.9 billion.US Top News and Analysis: “Profits from Chevron's refining division surged more than 300% to $4.9 billion compared to $1.1 billion in the same period in 2025.”
Partly supportedExxon’s Gulf Coast refineries operated at full capacity and had their second-highest diesel production on record.US Top News and Analysis: “Exxon's Gulf Coast refineries operated at 100% utilization with the second-highest diesel production on record at those facilities, the company said.”
