Exxon and Chevron Beat Q3 Earnings Forecasts with Record Oil Output Amid Price Drop

• Exxon Mobil achieved record production of 4.77 million barrels per day, boosting upstream earnings to $5.68 billion.

• Chevron’s production surged 21% to 4.1 million barrels per day, aided by the Hess acquisition and expansions in the Permian and Gulf of Mexico.

• Despite a 16% drop in U.S. crude prices this year, both firms returned significant cash to shareholders, with Exxon distributing $9.4 billion in the quarter.

Discover Exxon Mobil and Chevron Q3 2025 earnings highlights: record outputs and profits amid oil price challenges. Learn key production gains and financial strategies for investors today.

What were Exxon Mobil and Chevron’s Q3 2025 earnings results?

Exxon Mobil and Chevron’s Q3 2025 earnings exceeded analyst expectations, with Exxon reporting adjusted earnings of $1.88 per share against forecasts of $1.82, and Chevron at $1.85 per share versus $1.68 predicted. Exxon’s net income reached $7.55 billion, down 12% year-over-year but supported by robust production, while Chevron’s fell 21% to $3.54 billion due to acquisition costs and currency impacts. Both demonstrated resilience through operational efficiencies and record outputs in challenging markets.

How did Exxon Mobil achieve record oil production in Q3 2025?

Exxon Mobil set new production benchmarks in the quarter, reaching 700,000 barrels per day offshore Guyana and nearly 1.7 million barrels per day in the Permian Basin, contributing to a total of 4.77 million barrels per day. CEO Darren Woods emphasized during the earnings call that profitability per barrel has more than doubled since 2019, thanks to low costs and rigorous project standards requiring double-digit returns even at $35 per barrel oil prices. Upstream earnings hit $5.68 billion, with refining at $1.8 billion and chemicals at $515 million, though the latter faced margin pressures. Capital spending for 2025 is projected below $27 billion, while shareholder returns included $9.4 billion and a dividend hike to $1.03 per share. Data from LSEG confirms these figures outpaced expectations amid a 16% U.S. crude price decline this year.

Revenue for Exxon came in at $85.29 billion, slightly below the $87.7 billion anticipated, yet the company maintained strong financial health. Woods noted that every major investment meets high return thresholds, far below current oil prices around $60 per barrel. This focus on efficiency helped offset broader market pressures from increased OPEC+ supply and economic uncertainties tied to trade policies.

Chevron mirrored this production strength, posting a 21% year-over-year increase to 4.1 million barrels per day, integrating Hess assets alongside gains in the Permian Basin, Gulf of Mexico, and Kazakhstan. U.S. output rose 27% to 2 million barrels per day, while international volumes grew 16% to the same level. CEO Mike Wirth highlighted the Hess deal’s role in expanding capacity, with adjusted free cash flow climbing 50% to $7 billion.

Chevron’s downstream operations shone, with U.S. refining earnings surging to $638 million—over four times the prior year’s figure—and international refining up 11% to $499 million, driven by improved product margins. Capital expenditures increased 7% to $4.4 billion, focused on Hess integration and global growth. Despite a $235 million loss from the Hess transaction and currency effects, the company’s strategic expansions cushioned overall performance.

Market reactions were mixed, with Exxon’s stock dipping about 1% on the earnings release day, reflecting broader oil price volatility from higher OPEC+ output and tariff concerns impacting economic confidence. Both firms’ results underscore a commitment to shareholder value, with Exxon raising its dividend and Chevron bolstering its balance sheet through cash flow gains.

Frequently Asked Questions

What factors contributed to Exxon Mobil’s Q3 2025 profit despite falling oil prices?

Exxon Mobil’s $7.55 billion Q3 2025 net income, or $1.88 adjusted per share, beat estimates due to record production in Guyana and the Permian Basin, reaching 4.77 million barrels per day total. Cost controls doubled profitability per barrel since 2019, while upstream earnings of $5.68 billion offset refining and chemical margin challenges, as per LSEG data.

How has Chevron’s Hess acquisition impacted its production in 2025?

Chevron’s Hess acquisition has significantly boosted 2025 production to a record 4.1 million barrels per day, up 21% from last year, with key gains in the Permian, Gulf of Mexico, and Kazakhstan. This integration, alongside higher volumes, helped adjusted earnings reach $1.85 per share, exceeding forecasts despite transaction costs and currency fluctuations.

Key Takeaways

• Record Production Drives Profits: Exxon and Chevron both hit all-time highs in output, with Exxon’s 4.77 million bpd and Chevron’s 4.1 million bpd fueling earnings beats amid price declines.
• Shareholder Focus Remains Strong: Exxon returned $9.4 billion to investors and raised its dividend to $1.03 per share, while Chevron’s free cash flow rose 50% to $7 billion.
• Efficiency Mitigates Market Pressures: Cost controls and high-return projects enabled both companies to thrive despite OPEC+ supply increases and economic uncertainties from trade policies.

Conclusion

Exxon Mobil and Chevron’s Q3 2025 earnings highlight the oil giants’ ability to deliver strong results through record Exxon Mobil and Chevron Q3 2025 earnings and production expansions in regions like Guyana, the Permian Basin, and via the Hess deal. Despite challenges from falling crude prices and global trade tensions, their focus on cost efficiency and shareholder returns positions them well for future growth. Investors should monitor ongoing OPEC+ decisions and economic indicators, as these firms continue to prioritize high-return investments in a volatile energy landscape.