Chevron (CVX) has reported second-quarter earnings that substantially exceeded analyst expectations, propelled by a sharp increase in refining margins, while larger competitor Exxon Mobil (XOM) fell short of market projections.

The second-largest U.S. energy company by market value posted adjusted earnings per share of $6.06, significantly above the consensus estimate of $5.57. This marked the company's highest quarterly net profit since 2022, when the Russia-Ukraine conflict drove energy prices to multi-year highs. In pre-market trading, Chevron shares rose approximately 1.5%.

Chevron Chairman and CEO Mike Wirth commented: "Amid heightened geopolitical uncertainty and volatile markets, the entire Chevron team remained focused on safely and reliably supplying the energy the world needs."

"The strong second-quarter results were driven by strict capital discipline and efficient execution. U.S. upstream oil and gas production and U.S. refinery crude processing volumes both reached new records, with core assets operating at peak reliability," Wirth added.

Chevron's impressive financial performance was largely fueled by record refining output. Amid the Iran conflict, prices for refined products like diesel and gasoline have surged far more than crude oil. The company reported its refinery utilization rate at approximately 97%. The crack spread, a key profitability metric for the refining industry, measures the margin refineries earn by processing crude oil into finished products. The geopolitical turmoil has caused the largest supply shock in history, tightening crude supply while strengthening demand for refined products, pushing crack spreads to record highs, according to CME Group data.

The inflationary impact of the conflict is evident in the U.S., with data from the American Automobile Association (AAA) showing the national average retail gasoline price at the pump surpassing $4.10 per gallon on Friday.

Natasha Kaneva, J.P. Morgan's global head of commodities, commented: "Price movements across the board confirm the market's reasoning. The surge in distillate crack spreads in Europe and the U.S. to historical levels indicates that the primary issue in this energy supply crisis is no longer just a crude oil shortage, but increasingly a refining capacity bottleneck."

On May 12, 2026, a drone shot captured the Chevron Pasadena Refinery in Pasadena, Texas, near Houston. Chevron's U.S. crude oil production reached a quarterly record of 2.07 million barrels per day, an 18% increase year-over-year. Global total oil and gas production rose 20% compared to the same period last year. The company attributed part of the production increase to the acquisition of Hess Corporation, completed in July 2025, which secured Chevron several major oil fields offshore Guyana.

In contrast, the largest U.S. energy company by market value, Exxon Mobil, underperformed expectations. Second-quarter adjusted earnings per share came in at $3.52, below the analyst consensus of $3.63. Pre-market shares fell as much as 3%. Exxon Mobil stated that additional costs from scheduled maintenance eroded final profits. Although the company achieved a record quarterly output for diesel and posted refining earnings of $4.1 billion (a four-year high), this figure was still well below the market expectation of $5.36 billion. Exxon Mobil's report noted that excluding Middle Eastern production affected by geopolitical disruptions, its upstream oil and gas output hit a twenty-year high, with high production from the U.S. Permian Basin boosting overall capacity.

The strong performance of European oil majors further highlighted Exxon Mobil's relative weakness this quarter. Shell (SHEL) reported adjusted earnings per share of $1.76, significantly beating the forecast of $1.55. TotalEnergies (TOTB.F) posted adjusted earnings per share of $2.68, slightly below the market estimate of $2.71, but representing a 72% increase year-over-year.