By Collin Eaton
America's two largest oil companies on Friday posted their smallest annual profits since 2021, pressured by a growing glut of crude that has weighed on prices.
Exxon Mobil and Chevron also reported their fourth-quarter earnings declined year over year, though both companies increased oil-and-gas production.
Oil prices began sinking shortly after President Trump returned to office and urged the Saudi Arabia-led Organization of the Petroleum Exporting Countries to boost oil production in an already well-supplied global oil market.
U.S. oil prices ended 2025 down 20% at $57.42 a barrel, and have since climbed back above $65. Despite the slide, Exxon and Chevron's shares have risen nearly 30% and 10%, respectively, over the past year.
-- Exxon's annual earnings declined to $28.8 billion, from $33.7 billion in
2024. Its quarterly profit fell to $6.5 billion, down 14% from the same
period a year earlier.
-- On a per-share basis, it earned $1.53 in the fourth quarter, or $1.71
when stripping out certain one-time costs. Analysts surveyed by FactSet
predicted $1.70.
-- Chevron posted an annual profit of $12.3 billion, down 30% from the
previous year. Its fourth-quarter earnings declined to $2.8 billion, from
$3.2 billion the year before.
-- Quarterly per-share earnings were $1.39, or $1.52 when excluding one-time
charges. Analysts expected $1.42, per FactSet.
Big picture
Exxon's earnings sank, but the company said it boosted its annual oil-and-gas production to the highest level in over 40 years and spent $37.2 billion -- outpacing its peers -- on dividends and share repurchases in 2025. The U.S. oil giant has cut $15 billion from its structural costs in recent years, girding its balance sheet for times of lower oil prices. It brought 10 new projects online last year, adding $3 billion of annual earnings potential.
"Our transformation is delivering a more resilient, lower-cost, technology-led business with structurally stronger earnings power," Chief Executive Darren Woods said.
Last year, Chevron pumped record levels of oil and gas worldwide, up 12% from the previous year. Following its victory in a prolonged arbitration case with Exxon, its $53 billion purchase of Hess helped the company add far more barrels to its books last year than it produced.
Venezuela pressure
Trump is pressing Exxon, Chevron and other oil companies to pump $100 billion into oil projects in Venezuela, following the U.S. incursion that culminated in the capture of strongman Nicolás Maduro.
Most companies don't want to rush into Venezuela before the Trump administration and the Latin American country's current government offer security guarantees and create a workable financial and legal framework for new projects.
Chevron said Friday it was continuing to engage with the U.S. and Venezuelan governments.
"We do believe there are opportunities for expansion of our footprint," Chevron Chief Financial Officer Eimear Bonner said.
The company, she said, has had a productive dialogue with the Trump administration, which has asked Chevron for input as U.S. officials have examined opportunities in Venezuela and identified areas that could potentially "unlock more value."
Bonner also applauded Venezuela's new hydrocarbon law, which allows private companies more autonomy within the country's state-controlled oil industry.
Write to Collin Eaton at collin.eaton@wsj.com
(END) Dow Jones Newswires
January 30, 2026 06:30 ET (11:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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