ExxonMobil and Chevron Earnings Fall, but Bigger Profits Are on Their Way because of Soaring Oil Prices
Both companies beat Wall Street estimates, but Exxon lost nearly $4 billion on hedges and Chevron booked a $2.9 billion charge.
- On Friday, May 1, 2026, Exxon Mobil and Chevron reported sharp profit drops for the first quarter, as war-related hedging losses offset gains from surging oil prices.
- The conflict in Iran forced closure of the Strait of Hormuz, causing both companies to record significant charges on financial hedges as oil prices spiked before physical deliveries could occur.
- Exxon posted net income of $4.2 billion, down 45%, while Chevron reported $2.2 billion, down 37%, yet both beat Wall Street's adjusted earnings estimates for the period.
- Chevron bought back $2.5 billion of stock, 16% less than the previous period, maintaining caution about increasing buybacks amid current market volatility.
- Chief Financial Officer Eimear Bonner stated, "We really don't know how long the Strait of Hormuz will remain closed," highlighting uncertainty in forward guidance.
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51 Articles
Daily Journal
ExxonMobil CEO sees chance of higher oil prices as earnings dip
US oil giants reported lower earnings Friday with accounting effects muting the benefits of the Middle East oil shock, as ExxonMobil's CEO cautioned that crude prices could still increase.
US oil companies Chevron and Exxon Mobil beat winning expectations due to high oil prices+++ Colgate palmolive is growing stronger than expected – decline in North America +++ The newsblog.
Turbulent Waters: Oil Giants Face Unexpected Profit Hurdles Amid Middle East Conflict
The two largest US oil companies, Exxon Mobil and Chevron, reported profit declines in the first quarter despite meeting Wall Street expectations. The decline results from hedges impacted by geopolitical tensions following US and Israeli actions against Iran. This has caused a knock-on effect on global oil supply and transportation.
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