Chevron and Exxon beat earnings estimates as diesel prices lift refining profits

Chevron and Exxon Mobil reported sharply higher third-quarter profits on Friday, saying their U.S. refineries ran at or near full capacity to take advantage of elevated diesel fuel prices.

Chevron's net income rose nearly 200% to $9.9 billion, or $5.06 a share, from $3.5 billion, or $1.82 a share, in the same period a year earlier. Adjusted for one-time items, the company reported earnings of $5.28 a share, beating Wall Street's expectations of $4.89.

Exxon Mobil's profit doubled to $15.4 billion, or $3.72 a share, from $7.5 billion, or $1.76 a share, in the same period in 2025. Adjusted for one-time items, it posted earnings of $4.23 a share, also above the Street's estimates.

Diesel prices have surged globally as Ukraine and Iran have bombed refineries in Russia and the Middle East, prompting U.S. refiners to ramp up production to fill the supply gap.

Refining and production

Chevron said its U.S. refineries processed record amounts of crude oil, at just above 1 million barrels per day, running at 98% capacity, while diesel and jet fuel yields rose more than 10%. Profits from its refining division jumped more than 300% to $4.9 billion from $1.1 billion a year earlier.

Exxon said its Gulf Coast refineries operated at 100% utilization and recorded their second-highest diesel production on record.

Chevron's oil and gas production business also improved, with profits up about 70% to $5.7 billion from $3.3 billion. Output declined slightly to 3.9 million barrels per day from about 4 million barrels per day a year earlier. The decline came in its international segment, due in part to the conflict in the Middle East, while U.S. output was largely flat year over year.

Market reaction

Chevron shares were up about 2% in premarket trading, while Exxon was trading about 1.5% higher.

Source: CNBC.