Key facts
- ExxonMobil and Chevron earned a combined $26.5 billion in the second quarter.
- Chevron reported a record net income of $12.2 billion, while Exxon earned $14.5 billion.
- High crude oil prices and strong refining margins fueled the profits.
- President Donald Trump ordered an investigation into gasoline price gouging.
- Chevron's global production reached 4 million barrels of oil equivalent per day.
ExxonMobil and Chevron collectively posted $26.5 billion in profits for the second quarter, benefiting from increased oil production, higher fuel sales, and strong refining margins. The profits come amid a market disrupted by war, leading to high gasoline and diesel prices.
Chevron reported a record net income of $12.2 billion, nearly five times its profit from the same period last year. Exxon earned $14.5 billion, doubling its year-ago profit and achieving its best result since the surge in oil prices following Russia's invasion of Ukraine.
The conflict in the Middle East, coupled with reduced Gulf production and disruptions to tanker traffic through the Strait of Hormuz, significantly impacted crude prices. Furthermore, refinery outages in the Middle East, combined with lost Russian capacity and China's reduced fuel exports, exacerbated the situation in gasoline and diesel markets.
Chevron's refining profit surged to $4.9 billion from $737 million a year prior. Exxon's refining business generated $5.5 billion, recovering from a $1.3 billion loss in the first quarter. Exxon CFO Neil Hansen noted that the primary issue is now the limited availability of refined products, rather than crude oil itself.
Chevron's global production reached 4 million barrels of oil equivalent per day, boosted by its Hess acquisition, with U.S. output hitting a record 2 million bpd. Exxon produced 4.5 million bpd, also achieving record output from the Permian Basin, with refineries operating near capacity.
President Donald Trump has expressed dissatisfaction with current gasoline prices, which average $4.11 per gallon nationally, compared to $2.25 during the pandemic. He has ordered the Justice Department to investigate alleged price gouging and has not ruled out an export ban on refined products. Chevron has cautioned that restricting exports could deter investment and ultimately reduce market supply.