ExxonMobil and Chevron reported sharply higher third-quarter profits this week, with Exxon's earnings doubling to $15.4 billion from $7.5 billion a year earlier and Chevron's nearly tripling to $9.9 billion from $3.5 billion. Both companies credited the jump largely to refining operations, where margins have widened as diesel prices climbed to roughly $6.32 a gallon amid supply disruptions tied to the ongoing conflict with Iran.
Refining margins do most of the work
Chevron's refining division profit surged more than 300% to $4.9 billion for the quarter, up from $1.1 billion a year earlier, while Exxon's refining business generated about $7.2 billion in the third quarter alone and has brought in $11.4 billion over the first nine months of 2026, nearly triple the $4 billion it posted over the same stretch last year. Across the broader industry, oil and gas companies generated more than $130 billion in combined profits between April and September, compared with less than $47 billion over the same months in 2025.
The surge reflects how disruption to Middle East energy supply routes has widened the gap between crude prices and the price refiners can charge for finished products like diesel and gasoline, a dynamic that has proven far more lucrative for companies with large refining operations than the upstream drilling side of the business alone.
