ExxonMobil and Chevron reported third-quarter earnings above analysts’ expectations on Friday, 30 October, benefiting from higher prices and record production. The results came as consumers faced rising fuel costs, with concerns about living expenses shaping voters’ views ahead of midterm elections that will decide control of Congress.
Regular gasoline averaged $4.20 a gallon, according to AAA, nearly $1.20 more than a year earlier and an increase of about 38% over the past year. Diesel prices stood at about $6.32 a gallon, up 71%. In a recent Harris poll conducted for the Guardian, 36% of voters identified the rising cost of living as the election’s most important issue.
Disruption from the wars in Iran and Ukraine has pushed fuel costs higher. Exxon also benefited from strong output at its operations in Guyana and the Permian Basin in the south-west. Chevron’s quarterly figures included a month of production in Venezuela, where the company is committing substantial investment.
Exxon’s US Gulf coast refineries operated at 100% utilization, while diesel output from those facilities reached its second-highest level on record. Chairman and chief executive Darren Woods said investments including the expansion of the Beaumont refinery in Texas had helped increase the company’s distillate production by approximately 40% since 2019.
Exxon reported that third-quarter net income more than doubled to $3.72 a share. Adjusted earnings reached $4.23 a share, exceeding the average analyst forecast of $4.12. Revenue for the three months through September increased 33% to $113.16bn, also surpassing estimates. The Spring, Texas-based company raised its quarterly dividend to $1.07 and set out a $20bn share buyback plan.
Chevron earned $9.9bn, equivalent to $5.06 a share, in the third quarter. Revenue at the Houston-based company climbed 36% to $67.8bn. Both measures comfortably exceeded expectations.
The second-largest US oil company, Chevron has operated in Venezuela since 1923. In September, it announced plans to invest $7bn there over five years. The company said an accounting-related change during the quarter meant it was now including those results in its figures.
Investors sent Exxon shares up 1.9% in pre-market trading, with the stock having gained 64% over the previous 12 months. Chevron shares rose 1.1%. The market gains accompanied a widening political debate over the benefits of higher oil prices and their impact on household budgets.
At a Georgia rally on 24 October, Donald Trump described higher gasoline prices as ultimately benefiting all Americans, saying he was making the argument despite warnings from advisers. He said the country was earning hundreds of billions of dollars as buyers sought oil from Texas, Oklahoma and Louisiana because of events in the Middle East. Trump also anticipated criticism that he was celebrating oil earnings while consumers struggled with fuel costs.
