Chevron's stock rises as earnings soar past expectations, but ExxonMobil misses profit forecasts and the stock drops
Combined profits of ExxonMobil and Chevron for the second quarter soared more than 300% in three months to more than $26 billion.
Profits at the two biggest oil companies, ExxonMobil and Chevron, soared during the second quarter - as one would expect - with the Iran war leading to supply shortages.
Combined, net earnings for the two companies for the quarter to June 30 jumped 316% from the previous quarter to $26.6 billion. And combined revenue grew 38% to $183.2 billion.
Chevron $(CVX)$ said production in the U.S., which wasn't constrained by the war, reached record levels, while ExxonMobil $(XOM)$ said Permian Basin production was also at an all-time high.
But the earnings results weren't all rosy.
Both companies noted that supply disruptions due to the Middle East conflict impacted overall production, while Chevron added that it also led to a drop in crude inputs to refineries and to lower refined product sales, as demand for gasoline and diesel fuel declined amid rising prices.
Chevron's stock edged up 0.3% in premarket trading on Friday, as earnings beat expectations, but ExxonMobil missed profit projections. Its stock fell 1.1%.
ExxonMobil's net earnings for the latest quarter totaled $14.53 billion, which was up 247% from the first quarter, and up 106% from a year ago. Meanwhile, adjusted EPS rose to $3.52 from $2.09 in the first quarter but missed the average analyst estimate compiled by FactSet of $3.56.
Chevron's net profit for the latest quarter came in at $12.07 billion, 446% more than in the first quarter and up 385% from last year. Adjusted EPS of $6.11 beat the FactSet consensus of $5.55.
ExxonMobil's total revenue rose 42% to $116 billion and Chevron revenue was up 56% to $70.06 billion, above the respective FactSet consensus of $109.94 billion and $62.72 billion.
Keep in mind that crude prices actually fell during the second quarter, as the Iran war started on Feb. 28, and WTI crude futures (CL00) peaked in early April, at the start of the quarter, while Brent futures (BRN00) peaked in early May.
WTI futures fell 31.5% during the quarter and Brent futures sank 29.8%, with both ending the quarter slightly above where they were just before the Iran war started.
ExxonMobil's stock fell 19.4% during the second quarter, but was up 30.4% in 2026 through Thursday, while Chevron shares shed 19.9% in Q2 but had gained 26.2% this year.
-Tomi Kilgore
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