Chevron sets a record, Exxon doubles profit amid war with Iran

American oil giants Chevron and ExxonMobil together earned almost $26.6 billion in the second quarter of 2026. Companies benefited from rising energy prices and record refining margins after supply disruptions caused by the US war with Iran and the ongoing closure of the Strait of Hormuz.

Chevron posted net income of $12.07 billion - the highest quarterly result in the company's history. The figure increased almost fivefold from $2.49 billion in the same period of 2025.

Chevron revenue grew by 56% - to about $70.1 billion. Adjusted earnings per share were $6.06 against $1.77 a year earlier and exceeded analysts' expectations.

ExxonMobil finished the quarter with net income of $14.525 billion, more than double the prior year's figure and the best result for the company since 2022. Adjusted profit was $14.68 billion, or $3.52 per share.

ExxonMobil's operating cash flow reached $23.56 billion, and free cash flow stood at $17.24 billion. The company attributed strong results to favorable market conditions, high production, efficient operation of refineries and cost reduction.

One of the main sources of profit growth was refining. Prolonged restrictions on transit through the Strait of Hormuz coincided with a reduction in available processing capacity in other regions. This caused a sharp rise in prices for gasoline, diesel and jet fuel and increased the difference between the cost of crude oil and finished petroleum products.

ExxonMobil's refining and fuel segment generated $5.47 billion in profit. The company also recorded record second-quarter production of diesel fuel.

ExxonMobil's upstream division earned $7.93 billion. Production in the Permian basin exceeded a record 1.8 million barrels of oil equivalent per day, with total company production at around 4.51 million barrels per day.

ExxonMobil noted that accumulated savings from structural cost reductions reached $16.3 billion compared to 2019 levels.

Chevron also reported record oil and gas production and maximum utilization of refineries. The company's production in the US reached approximately 2.1 million barrels of oil equivalent per day - an increase of 382,000 barrels from a year earlier.

Growth was fueled by Hess assets acquired by Chevron in 2025, as well as increased production in the Permian basin. In Venezuela, the company ramped up production by about 15% to 280,000 barrels per day over the last six months.

Both companies directed a substantial portion of proceeds to shareholders. $4.3 billion in dividends and spent $5.1 billion on share buybacks. Total payments to shareholders amounted to $9.4 billion.

Chevron returned another $6.6 billion to shareholders through dividends and share repurchases. Thus, the combined payouts by the two oil majors reached $16 billion in the quarter.

Company management stressed that they do not plan to sharply increase investments just because of a temporary spike in prices. Chevron maintained its existing spending plan and expects 7-10% production growth in 2026. ExxonMobil used part of its cash flow to reduce net debt by about $7 billion.

On sources: ExxonMobil, The Wall Street Journal, Barron's