ExxonMobil and Chevron posted sharply higher second-quarter profits on Friday after the U.S.-Iran conflict pushed crude oil prices higher, boosting earnings across their upstream and refining operations.
The results add to the spike in crude prices and tighter fuel markets that have strengthened the financial performance of the world’s largest oil producers, even as concerns persist over the security of global energy supplies.
Chevron delivered the stronger earnings surprise, while Exxon reported record production but narrowly missed Wall Street’s profit expectations.
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Chevron Posts Nearly 400% Jump In Profit
Chevron reported net income of $12 billion for the second quarter, nearly five times the $2.5 billion earned in the same period last year.
Adjusted earnings came in at $6.06 per share, comfortably ahead of analysts’ expectations of $5.56 per share, according to LSEG.
Revenue rose to $70 billion, surpassing forecasts of $62 billion.
Chief Executive Mike Wirth said the company is benefiting from strong performance across its operations.
“We’re kind of firing on all cylinders, which is good, because the world needs it,” Wirth told CNBC.
He also warned that risks to global oil supplies extend beyond the Strait of Hormuz, noting that attacks by Iran-backed Houthi forces in the Red Sea are threatening another critical shipping corridor used for Saudi crude exports.
“The situation is under stress and I’m afraid it’s going to continue to do so,” Wirth said. “We’re running out of time. Every day that goes by, the situation gets more difficult.”
Exxon Doubles Quarterly Earnings
ExxonMobil reported second-quarter profit of $14.5 billion, roughly double the $7.1 billion earned a year earlier.
Adjusted earnings were $3.52 per share, slightly below analysts’ expectations of $3.60 per share, although revenue significantly exceeded forecasts.
Revenue climbed to $116 billion, well above the consensus estimate of $97.8 billion, reflecting higher oil prices and stronger production volumes.
Despite the earnings miss, Exxon continued to demonstrate operational strength through record output and improved refining performance.
The earnings surge followed a sharp increase in crude prices during the quarter. U.S. benchmark crude averaged $92.45 per barrel between April and June, up 27% from the previous quarter, as concerns over supply disruptions intensified following the escalation of the U.S.-Iran conflict.
The conflict has heightened fears over shipping through the Strait of Hormuz, a vital artery for global crude exports, while attacks in the Red Sea have complicated alternative export routes.
Higher crude prices generally translate into stronger cash flows for oil producers, while tighter supplies of refined fuels such as gasoline and diesel have also boosted refining margins.
Production Reaches Record Levels
Chevron reported record U.S. oil and gas production of approximately 2 million barrels per day, supported by higher exports as disruptions in the Middle East tightened global supplies.
Worldwide production increased to 4 million barrels per day, up from 3.4 million barrels per day a year earlier, representing roughly 20% growth.
Exxon also achieved record operational performance.
The company said upstream production reached its highest level in more than two decades, excluding disruptions related to the Middle East.
Production in the Permian Basin reached a record high, while total global output rose to 4.5 million barrels per day.
The strong production growth reflects years of investment in low-cost shale assets and large offshore developments that continue to generate higher volumes even as global supply risks increase.
Refining Becomes A Major Profit Driver
The surge in fuel prices significantly improved refining profitability for both companies. Chevron’s refining business generated $4.9 billion in earnings, more than six times the $737 million reported a year earlier, as gasoline and diesel prices climbed following supply disruptions linked to the Middle East conflict.
Exxon’s refining segment reported $5.5 billion in earnings, marking a dramatic turnaround from a $1.3 billion loss in the first quarter.
Compared with $1.4 billion in the same quarter last year, the improvement was driven by strong Gulf Coast refinery utilization and record diesel production.
The results reveal that integrated oil companies are benefiting from multiple parts of the energy value chain during periods of elevated prices. While upstream operations capture gains from higher crude prices, refining businesses often earn stronger margins when fuel supplies tighten.
Upstream Earnings Strengthen
Chevron’s oil and gas production business generated $8.2 billion in earnings, compared with $2.7 billion a year earlier, reflecting the combined impact of higher oil prices and increased production.
Exxon’s upstream division earned $7.9 billion, up from $5.4 billion in the second quarter of 2025.
The strong upstream performance reaffirmed the sector’s sensitivity to crude price movements, particularly during periods of geopolitical disruption.
The results show that geopolitical developments have once again become a key driver of energy markets. Although ceasefire efforts have reduced immediate fears of a wider regional conflict, continued tensions involving Iran, the Strait of Hormuz and Red Sea shipping routes have kept risk premiums embedded in oil prices.