Earnings
Exxon and Chevron lean on refining as upstream earnings and output slip in the third quarter
Exxon's energy products profit more than doubled from the second quarter while Chevron's production fell to 3.98 million barrels a day.
HedgeWeekly News Desk ·
ExxonMobil reported third-quarter earnings of $15.4 billion, or $3.72 a share, and adjusted earnings of $17.5 billion, or $4.23 a share, up from $14.7 billion in the second quarter. Its energy products segment earned $9.05 billion on an adjusted basis, against $4.10 billion in the previous quarter, while upstream earnings fell to $7.31 billion from $9.19 billion.
Chevron posted net income of $9.92 billion, or $5.06 a share, and adjusted earnings of $10.36 billion, or $5.28 a share. That compares with $11.98 billion adjusted in the second quarter and $3.63 billion a year earlier. Net oil-equivalent production slipped to 3.98 million barrels a day from 4.07 million in the second quarter, while U.S. refinery crude inputs reached a record 1.09 million barrels a day, the company said.
Both groups kept cash returns high. Exxon generated $25.7 billion of operating cash flow and $19.1 billion of free cash flow, paid out $9.4 billion to shareholders and put its net debt at $22.1 billion. It also said it plans $20 billion of buybacks in 2027, market conditions permitting. Chevron produced $12.0 billion of free cash flow, repurchased $2.5 billion of stock and declared a dividend of $1.78 a share.
For funds and allocators, the split matters. At both companies the quarter's earnings strength came from downstream margins rather than from higher crude output: Exxon's upstream profit and Chevron's production both fell from the second quarter. Investors will watch whether refining strength carries into the fourth quarter, because Exxon's $20 billion 2027 buyback plan assumes supportive market conditions.