Exxon and Chevron report massive profits after Trump brags U.S. energy companies are ‘making a freaking fortune’ just before midterms

The war has pushed oil prices well above $100 per barrel and U.S. gasoline costs to autumn records and diesel to all-time highs. Driven by spiking refining profits, Exxon posted a third-quarter profit $15.4 billion, more than double the $7.5 billion profit from the same quarter a year ago, and just shy of its highest quarterly profit ever in 2022. Likewise, Chevron’s earnings of $9.9 billion were well up from $3.5 billion a year ago.

“We recognize the impact high prices have on people’s lives and economic growth,” said Exxon CEO Darren Woods during Friday’s earnings call. “We always have, which is why we have been constantly focused on efficiently growing advantaged production to keep markets supplied. That focus and commitment pays off in times like this.”

He specifically cited a large refining expansion in Beaumont, Texas in 2023 that he said has kept prices from rising even higher.

The earnings reports—including huge earnings from London-based Shell and BP—come as Trump highlights the big profits for U.S. oil companies on the campaign trail. “I could just see the fake headlines. ‘President Trump is talking about all the money they’re making while people are suffering at the pump.’ That’ll be the headline,” Trump said. “But I said, ‘I don’t give a damn. I’m going to say it.’ We’re making a freaking fortune.”

In fairness, the Big Oil companies have been careful not to brag about how much they’re profiting from the Iran war. After all, they don’t control the global markets for oil and fuel prices and, like most corporations, they’re maximizing their profits in a favorable commodities environment.

Exxon’s stock is up 62% in 12 months, including a 1% hike Friday. Chevron is up 53% in a year, also counting a gain of over 1% Friday.

But the companies that focus more exclusively on oil refining have proven even bigger winners, especially from roughly 10% of global refining capacity offline in the Middle East and Russia. Phillips 66 and Valero Energy reported their most profitable quarters ever this week—$5.6 billion and $6.8 billion, respectively. Philips 66’s market cap is up 104% in a year, and Valero has risen by a whopping 140%.

Valero said Friday it continued to grow by buying the mothballed Houston oil refinery of petrochemical maker LyondellBasell for $320 million.

Eyes on wars

Even if peace deals came in Iran and Ukraine, Exxon’s Woods said it will take time to restore supply chains and for Russia to repair badly damaged refineries.

“It will take certainly well through next year before we see things getting back closer to normal, but it could be longer than that frankly,” Wood said.

Chevron CEO Mike Wirth offered similar expectations for elevated global gasoline and diesel prices.

“I would expect [refining] margins to stay elevated in the short term. The world has 10% of its refining capacity offline today,” Wirth said. “I would expect margins to eventually moderate as refinery runs recover and export flows increase, but that will take some time.”

Although the oil companies are clearly benefiting from the global conflicts, they do still desire more certainty and less volatility for planning purposes. From Exxon’s perspective, the company is losing a lot of natural gas profits from Qatar shutdowns.

“Somehow, someway, the issues in the Middle East are going to have to be resolved and the Strait [of Hormuz] is going to have to open,” Woods said. “Those resources are critically needed.”

Led by Saudi Arabia and U.S. naval escorts, Middle East oil exports have mostly recovered from pre-war levels this fall. However, China, which has cut its oil imports effectively in half, is now buying more again, and the U.S. is no longer rapidly draining its depleted Strategic Petroleum Reserve. Also, Middle Eastern oil is moving at great costs for leasing tankers and paying insurance—as Iran continues to attack vessels—and energy markets anticipate a possible escalation in U.S. strikes after the midterms.

Wirth said Chevron benefits by either owning or having long-term leases for oil tankers at pre-war rates.

“It is a material contributor to the results,” Wirth said.