ExxonMobil and Chevron announced third-quarter financial results that surpassed analyst forecasts, benefiting from elevated commodity prices and record production levels across their operations. The strong performance underscores a significant divergence between corporate profitability in the energy sector and consumer purchasing power, as gasoline and diesel costs have risen substantially year-over-year.
According to AAA data, average gasoline prices stand at $4.20 per gallon, representing an increase of approximately $1.20 from the prior year. Diesel prices have climbed to around $6.32 per gallon, reflecting a 71% increase over the same period. Regular gasoline prices are up approximately 38% annually. In polling conducted by Harris for the Guardian, 36% of voters identified rising living costs as the most pressing issue heading into the midterm elections that will determine congressional control.
ExxonMobil reported net income exceeding $3.72 per share for the quarter, with adjusted profit reaching $4.23 per share and handily clearing the average analyst estimate of $4.12. Revenue climbed 33% to $113.16 billion during the three-month period ending in September. The company operates at full capacity at its U.S. Gulf Coast refineries, with distillate production at the second-highest level on record. Growth has been supported by expanded operations in Guyana and the Permian Basin, as well as refinery upgrades including a Texas facility expansion that has boosted distillate output by approximately 40% since 2019. ExxonMobil raised its quarterly dividend to $1.07 and announced a $20 billion stock repurchase program.
Chevron reported earnings of $9.9 billion, or $5.06 per share, with revenue surging 36% to $67.8 billion, also outperforming expectations. The Houston-based company recently committed to a $7 billion investment in Venezuela over the coming five years and began including Venezuelan production results in its financial statements following an accounting change. Geopolitical disruptions in Iran and Ukraine have contributed to elevated fuel costs globally. Both companies’ shares gained in pre-market trading, with ExxonMobil stock up 1.9% and Chevron advancing 1.1%, extending gains of 64% and other positive returns over the preceding 12-month period.
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