Exxon and Chevron Beat Third-Quarter Estimates as Refining Margins Surge
Exxon reported $15.4 billion and Chevron $9.9 billion in third-quarter 2026 earnings on 30 October, as refining margins rose and Chevron expanded in Venezuela.
ExxonMobil and Chevron reported third-quarter 2026 results on 30 October, and both beat analyst estimates on third-quarter profit as refining margins climbed. Exxon reported earnings of $15.4 billion, or $3.72 a share, and Chevron reported $9.9 billion, or $5.06 a share, according to the earnings releases each company filed with the U.S. Securities and Exchange Commission.
Reuters reported that soaring refining margins lifted earnings from fuel-making, with the Strait of Hormuz effectively closed. Chevron also said its joint ventures in Venezuela plan to invest $7 billion over five years.
Refining Margins Lifted Earnings
Exxon's segment results show the shift. Its energy products segment, which includes refining, earned $7.2 billion in the quarter, slightly more than its upstream segment at $7.1 billion, according to Exxon's 8-K. Reuters reported that this is the first time in at least six years that Exxon has earned more from refining than from exploration and drilling.
Chevron's downstream business earned $4.9 billion, Reuters reported that this was its highest downstream result over the same period. Reuters tied the surge to attacks on refineries in Saudi Arabia and Russia. Reuters reported that Brent crude swung from as low as $68 to as high as $132 a barrel during the quarter. Vice Chairman Mark Nelson said margins will stay a bit elevated, maybe into next year.
Output, Buybacks and Balance Sheets
Chevron's upstream production averaged 3.98 million barrels of oil equivalent a day in the quarter, with 2.04 million in the United States and 1.94 million internationally, according to its 8-K. U.S. output has topped 2 million barrels a day for five straight quarters. Chevron reported a return on capital employed of 17.7%. Its adjusted earnings were $5.28 a share, according to its 8-K.
Exxon's upstream production reached 4.50 million oil-equivalent barrels a day, per its 8-K. Its adjusted earnings were $4.23 a share, according to its 8-K. In the quarter Exxon paid $4.3 billion in dividends and bought back $5.1 billion of shares. Its net debt stood at $22.1 billion on 30 September 2026. Chevron has cut net debt by nearly $14 billion since the end of 2025, Reuters reported.
Chevron Expands in Venezuela While Exxon Sets Conditions
Chevron's 8-K says its Venezuelan joint ventures plan to invest $7 billion over the next five years to unlock low-cost, long-duration production growth. The company said it improved commercial terms and expanded its acreage there, with potential to more than double output over five years. Venezuelan production was included for one month in the quarter after a change to equity accounting. Chairman and CEO Mike Wirth said the company delivered strong operational performance and disciplined execution while continuing to invest to grow energy supply.
Exxon's latest public position on Venezuela that this report could confirm dates from 9 January 2026. At a White House meeting that day, Chief Executive Darren Woods called the country's legal and commercial framework uninvestable, citing two past seizures of Exxon assets there, ThePrint reported. Woods said Exxon was ready to put a team on the ground if the Venezuelan government extended an invitation and appropriate security guarantees were in place. He also asked how durable the financial protections would be and what the returns would look like.
At the same meeting, when asked about specific commitments, Energy Secretary Chris Wright pointed to Chevron as the 'one specific pledge' from an oil company, ThePrint reported. ThePrint also described Chevron as the only major U.S. oil company still in Venezuela.
Dividends, Refinery Plans and Next Steps
Exxon's fourth-quarter dividend is $1.07 a share, payable 10 December 2026 to holders of record on 16 November 2026, according to its 8-K. The company marked 44 consecutive years of annual dividend-per-share increases. Reuters reported that Exxon plans to repurchase $20 billion of shares in 2027.
On refining, Exxon expects U.S. distillate output to grow by another 100,000 barrels a day through refinery investments, with no timeline given, Reuters reported. Chevron could grow capacity at its Pascagoula refinery by 7% by the end of the decade. Exxon CFO Neil Hansen said higher fuel prices put real pressure on families and businesses.
