Exxon, Chevron report record profits on steep fuel prices

Exxon Mobil and Chevron, the two largest energy companies in the United States, said Friday that profits rose to record levels in the second quarter as they continued to reap the benefits of soaring oil and gas prices.

Exxon reported income of $17.9 billion for the three months through June, more than three times what it earned in the same quarter a year ago. Revenue at the energy giant jumped to $115.6 billion, from $67.7 billion a year ago. Chevron’s performance was similar, with profit more than tripling to $11.6 billion as sales rose to $65 billion, compared with $36 billion a year ago.

Coming after oil prices nearly doubled from a year ago, the results were expected, but Exxon and Chevron still beat analysts’ predictions for profits in the quarter. The results mean that five of the biggest Western oil companies — including Britain’s BP and Shell, as well as France’s TotalEnergies — are likely to have generated some $60 billion in earnings for the second quarter.

Shell and Total also reported bumper earnings Thursday, and analysts are expecting similarly strong results from BP next week.

With oil and gas prices as high as they are, the profit results could increase political pressure on oil companies to do more to boost production and lower costs to consumers. They have already faced harsh criticism from President Joe Biden over the windfall earnings at a time when consumer prices in the United States are spiking.

On Friday, the companies said they would expand production somewhat, but they also announced a big increase in share buyback programs that reward shareholders.

The surge in profits followed a spike in crude oil, natural gas and gasoline prices this year, resulting mostly from Russia’s invasion of Ukraine and efforts to punish Moscow by cutting off its petroleum sales to the rest of the world. A global economy that was rebounding from the coronavirus pandemic and hesitation among oil producers to quickly ramp up production also contributed to the jump in prices.

In the three months from April to June, the U.S. crude oil benchmark averaged about $109 a barrel, or 64% more than it did in the same period a year earlier. On Friday, the price of West Texas Intermediate crude was closer to $98 a barrel.