WAR-DRIVEN FUEL BOOM HANDS EXXON AND CHEVRON A REFINING WINDFALL

ExxonMobil and Chevron both beat analyst expectations for third-quarter profit on Friday, October 30, powered by a surge in refining margins as global wars disrupted fuel supplies and sent gasoline and diesel prices higher.

Exxon, America's largest oil producer by market value, reported third-quarter earnings of $15.4 billion, or $3.72 a share, with adjusted earnings of $4.23 a share. Free cash flow of $19.1 billion funded $9.4 billion in shareholder distributions, and the company announced $20 billion of share repurchases for 2027.

Chevron earned $5.28 in adjusted per-share profit, with its third-quarter downstream earnings reaching their highest point in at least six years. Exxon reduced debt by $8 billion during the quarter, while Chevron has cut net debt by nearly $14 billion compared with the end of 2025.

The refining boom was driven by war. Reuters reported that the U.S.-Israeli war on Iran and the Russia-Ukraine conflict disrupted global energy markets, while the effective closure of the Strait of Hormuz and attacks on refineries in Saudi Arabia and Russia knocked out fuel-making capacity. Exxon and Chevron ran their U.S. refineries near full rates to fill the gap.

Exxon is now investing more in its refineries, including at its Baytown complex in Texas, and leaning on its trading team to direct supplies where they are needed most, Chief Financial Officer Neil Hansen told Reuters. High fuel prices have become a political flashpoint ahead of Tuesday's U.S. midterm elections, with diesel and gasoline costs adding to voter frustration — though the industry has so far avoided the toughest measures floated in Washington, including a possible diesel export ban.