Chevron and ExxonMobil reported sharply higher third-quarter profits on Friday as their U.S. refineries operated near maximum capacity to capitalize on elevated diesel prices driven by global supply constraints. Chevron's net income surged nearly 200% to $9.9 billion, or $5.06 a share, compared to $3.5 billion, or $1.82 a share, in the third quarter of 2025. ExxonMobil's profits doubled to $15.4 billion, or $3.72 a share, versus $7.5 billion, or $1.76 a share, in the year-ago period. Both companies beat Wall Street expectations with adjusted earnings of $5.28 and $4.23 per share respectively.
The surge in profits reflects a global fuel crisis stemming from attacks on refineries in Russia and the Middle East by Ukrainian forces, Iranian entities and Houthi militants, which have reduced global refining capacity by millions of barrels per day. As a result, importers have increasingly turned to U.S. Gulf Coast refineries for diesel supplies. U.S. diesel averaged $6.32 per gallon on Friday, representing an increase of more than 70% compared to the same period last year, according to AAA. Prices in the U.S. hit a record high in September.
Chevron's refining division profits surged more than 300% to $4.9 billion compared to $1.1 billion in the third quarter of 2025, while its oil and gas production generated earnings of $5.7 billion, up 70% from $3.3 billion in the year-ago period. The company's U.S. refineries processed record amounts of crude oil at just above 1 million barrels per day, running at 98% capacity, with diesel and jet fuel yields rising more than 10%. ExxonMobil's refining division generated profits of about $7.2 billion in the quarter, with its Gulf Coast refineries operating at 100% capacity utilization and producing record volumes of diesel.
Chevron CEO Mike Wirth told CNBC that "the system is under stress" and that the company remains "in an environment that is fairly fragile." ExxonMobil CEO Darren Woods stated that "refining capacity is very tight today" and highlighted diesel as "the key crunch point" because of its critical importance to economic growth and inelastic demand. However, both companies' strong earnings have drawn political scrutiny. President Donald Trump said in August that Chevron and Exxon "were making too much money based on a shortage," with the supply disruption beginning in March after the U.S. and Israel attacked Iran.
Production volumes at both companies declined during the period. Chevron's oil and gas production fell slightly to 3.9 million barrels per day compared to about 4 million barrels per day in the third quarter of 2025, with the decline occurring primarily in its international segment due in part to Middle East conflict, while U.S. output remained largely flat year over year. ExxonMobil has produced about 4.5 million barrels per day this year, a more than 2% decline from nearly 4.7 million during the first nine months of 2025.