Exxon Posts $15.4 Billion in Third-Quarter Profit as Refining Margins Surge
Key Facts
Exxon Mobil reported third-quarter 2026 profit under U.S. accounting standards of $15.4 billion, compared with $7.5 billion in the same period a year earlier, according to company data cited by Agence France-Presse. Chevron’s profit was $9.9 billion, versus $3.5 billion in the third quarter of 2025, the news agency reported. The results reflect strength in refining as turmoil in energy markets curtailed fuel production capacity and lifted margins. Exxon’s results topped analysts’ estimates, with adjusted earnings per share of $4.23 versus an average estimate of $4.12, according to the Associated Press. The company’s revenue also rose 33% to $113.16 billion in the three months ended in September.
Refining margins were a major driver of Exxon’s results. They reached $50.3 a barrel in the third quarter, about three times their level a year earlier, as supplies of products including diesel tightened, according to AFP. Exxon said earnings from energy products improved from the previous quarter on higher margins and strong operating performance. It added that crude distillation units at its U.S. Gulf Coast refineries ran at full capacity. Refinery performance indicates that the companies’ gains extended beyond oil and gas production to converting crude into fuel in a market facing a shortage of processing capacity.
Exxon said refining capacity in Russia and the Middle East remained low, with about 10% of global capacity offline, according to AFP. Reuters linked disruption in the fuel market to the war with Iran and the war between Russia and Ukraine, as well as the effective closure of the Strait of Hormuz and attacks on refineries in Saudi Arabia and Russia. The disruptions impaired fuel-making capacity and lifted margins at Exxon and Chevron. Against that backdrop, Exxon’s refining earnings exceeded those from its exploration and production business for the first time in at least six years, according to Reuters. Chevron’s refining and marketing earnings also reached their highest levels over the same time frame.
Data from both companies showed high operating and production levels. Chevron’s U.S. refinery utilization reached 98% in the third quarter, according to the AP, while the company said its U.S. production rose 27% from its level two years earlier. Chevron also recorded production records at its assets in the eastern Mediterranean and Australia. At Exxon, Chief Executive Darren Woods said investments such as the expansion of the Beaumont refinery in Texas had helped increase distillate production by about 40% since 2019. Exxon’s diesel production on the U.S. Gulf Coast reached its second-highest level on record, the news agency reported.
But higher fuel margins come as costs rise for consumers and businesses. Exxon Chief Financial Officer Neil Hansen said, "Higher fuel prices put real pressure on households and businesses," adding that the company was seeking to increase supplies using the means available to it, according to Reuters. Spot Brent crude prices ranged between $68 and $132 a barrel during the third quarter, a range that reflects volatility in the energy market, Reuters reported. The price movement highlights the breadth of the challenges facing the fuel market, where crude-price swings intersect with disrupted refining capacity. The companies’ results show how supply disruption flowed through to refiners’ earnings as fuel prices pressured households and businesses.
Exxon plans to buy back $20 billion of shares in 2027, the same level it maintained over the previous two years, according to Reuters. It also declared a quarterly dividend of $1.07 a share, payable on December 10, 2026, to shareholders of record on November 16. On supply, the company said refinery investments would add 100,000 barrels per day to U.S. distillate production, without specifying a timeline. Chevron’s chief financial officer said the company could increase capacity at its Pascagoula refinery in Mississippi by 7% by the end of the decade. The plans reflect a push to increase domestic fuel production, while the timing of Exxon’s potential increase remains unspecified.
Shares reacted to the results in premarket trading on October 30, 2026, with Exxon rising 1.9% and Chevron gaining 1.1%, according to the AP. The gains followed reports of strong quarterly profits and improved refining performance. The year-over-year comparison shows the companies’ profits widening in the third quarter, while operating data point to strong activity at their U.S. refineries. The increase in fuel production tied to Exxon’s investments has no announced timeline, while Chevron identified the end of the decade as a possible date for increasing capacity at its Pascagoula refinery. Exxon’s declared quarterly dividend is scheduled to be paid on December 10, 2026.