Exxon and Chevron Profits Rise on War-Driven Refining Boom

US oil giants ExxonMobil and Chevron reported better-than-expected third-quarter profits on Friday, October 30, as rising refining margins boosted earnings from their fuel production businesses. Disruptions to global energy markets caused by the US-Israeli war with Iran and the ongoing Russia-Ukraine conflict have restricted fuel supplies, pushing gasoline and diesel prices higher. Damage to refineries and the effective closure of the Strait of Hormuz have further tightened global refining capacity.

Exxon reported adjusted earnings of $4.23 per share, while Chevron recorded $5.28 per share. Exxon earned more from refining than from its oil exploration and production operations for the first time in at least six years. Chevron’s downstream earnings also reached their highest level in the same period. Both companies are exploring ways to increase refinery capacity and improve fuel production to meet global demand. Exxon plans to increase US distillate production by another 100,000 barrels per day through refinery investments.

The companies are using their increased cash flow to strengthen their financial positions and reduce debt rather than significantly expanding shareholder payouts. Exxon reduced its debt by $8 billion during the quarter and announced plans to repurchase $20 billion worth of shares in 2027. Chevron has reduced its net debt by nearly $14 billion since the end of 2025. Meanwhile, BP also reported strong quarterly results and plans to use additional funds to reduce liabilities, including repaying its remaining $5 billion Deepwater Horizon-related obligation early.