America’s two biggest oil companies delivered a strong set of quarterly results on Friday, as ExxonMobil and Chevron both beat profit expectations on robust production and refining performance. Exxon capped its report by announcing a $20 billion share buyback plan for 2027. The numbers stood out in an earnings season otherwise dominated by technology turbulence, as our business section has been tracking.
Production Strength Drives Exxon’s Beat
Exxon reported third-quarter earnings excluding identified items of about $17.5 billion, or $4.23 a share, highlighting strong output from its global portfolio. Chevron posted adjusted earnings of $5.28 a share, ahead of estimates, alongside roughly $12 billion of free cash flow and record United States refinery throughput.
Both companies benefited from crude prices that have been supported by geopolitical risk, including attacks on tankers in the Strait of Hormuz, as well as disciplined spending that has become the industry’s hallmark since the pandemic-era shakeout. Shares of both majors rose in pre-market trading following the releases.
Buybacks and the Shareholder Returns Race
Exxon’s planned $20 billion buyback for 2027 underlines how the supermajors now compete as much on shareholder returns as on production growth. With balance sheets repaired and debt low, the giants are funnelling cash to dividends and repurchases while keeping investment focused on their lowest-cost barrels.
As earnings coverage of the oil majors notes, the strategy has won over investors who once demanded growth at any price. The question for the sector is whether returns can stay this generous if crude prices soften from their current elevated levels.
A Defensive Corner of a Nervous Market
Energy was one of the few sectors to attract consistent buying during Friday’s tech-led sell-off, rising even as the broader market fell. Healthcare names reporting the same morning, including Regeneron and AbbVie, added to the defensive tone, while consumer staples such as Colgate-Palmolive raised guidance and gained.
The rotation tells its own story about the market’s mood: cash-generative, dividend-paying industries are back in favour while investors interrogate the spending plans of the technology giants.
For now, the oil majors are doing exactly what shareholders asked of them — producing profitably, spending carefully and handing back cash. In a market suddenly nervous about expensive promises, that reliability has rarely looked more valuable.
