Chevron Corp. CVX reported stronger-than-expected third-quarter earnings on Friday as disruptions to global fuel supplies lifted refining margins, helping the oil major offset weaker contributions from its oil and gas production business.
The stock was up 1.25% in premarket trading.
The company reported net income of $9.9 billion, or $5.06 per share, compared with $3.5 billion, or $1.82 per share, in the same period last year.
Adjusted earnings, excluding special items and foreign currency effects, came in at $10.4 billion, or $5.28 per share, beating the average analyst estimate of $4.89, according to LSEG data.
Revenue reached approximately $67.8 billion, beating estimates comfortably.
Refining business drives earnings beat
Chevron’s downstream division, which includes refining and fuel sales, generated $4.9 billion in earnings, more than four times the $1.1 billion recorded a year earlier and slightly higher than the previous quarter.
The improvement came as attacks on refining facilities in Russia and the Middle East disrupted fuel production, tightening supplies of diesel and other refined products and pushing margins higher.
Chevron’s US refineries processed a record more than 1 million barrels of crude per day during the quarter, with the facilities running at 98% capacity.
Production yields of diesel and jet fuel also increased by more than 10%, reflecting strong demand for refined products.
The upstream business, which covers oil and gas exploration and production, generated $5.7 billion in earnings.
Although higher than the $3.3 billion reported a year earlier, the figure declined 30% from the second quarter as crude prices eased.
Worldwide production averaged 3.98 million barrels of oil equivalent per day, down 2% from the previous quarter.
The company also recorded its first month of equity-accounted production from Venezuela under improved fiscal terms, with total production costs below $20 per barrel.
However, production in the third quarter of 2026 was lower than a year ago primarily due to lower
entitlements from higher prices and impacts from the Middle East conflict
Cash generation supports shareholder returns
Cash flow from operations reached $16 billion, while adjusted free cash flow climbed to $14.2 billion, twice the level recorded a year earlier.
Chevron distributed $3.5 billion in dividends and repurchased $2.5 billion worth of shares during the quarter.
Net debt declined to $20.7 billion from $34.5 billion at the end of 2025.
Chief Executive Mike Wirth said the company delivered strong operational performance while continuing to invest in expanding energy supplies.
Chevron’s board also declared a quarterly dividend of $1.78 per share.
Oil majors benefit from refining boom
Other major energy companies also reported strong third-quarter performances.
ExxonMobil posted adjusted earnings of $17.5 billion, while Shell reported adjusted earnings of $10.8 billion and announced a $5 billion share buyback programme.
BP’s third-quarter profit quadrupled to $8.46 billion, its highest on record, as refining margins and energy prices strengthened.
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