Exxon and Chevron Lift Oil Production, Blunting Crude Price Drop

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(Bloomberg) — Exxon Mobil Corp. and Chevron Corp. surpassed profit expectations as higher oil production helped offset the blow from lower crude prices. 

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The titans of the US oil industry expanded output from the US Permian Basin, Guyana and other regions. For Exxon, full-year production hit a 40-year high while Chevron benefited from the integration of its $48 billion takeover of Hess Corp.

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The outperformance comes as major US drillers face growing pressure to assist in the Trump administration’s aspiration to revive the Venezuelan oil sector after the ouster of strongman Nicolas Maduro.  

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Chevron intends to finance a 50% increase in its Venezuelan oil production with cash from oil sales rather than committing new capital to the country, Chief Financial Officer Eimear Bonner said during an interview. 

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As the only major oil explorer with ongoing operations in the South American nation, Chevron has a leg up on rivals that departed years ago during a nationalization campaign by Maduro’s predecessor, the late former leader Hugo Chavez.

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Late Thursday, The Trump administration took steps to begin relaxing some of the punishing sanctions that have isolated the Venezuelan energy industry. The move gives other US companies the go-ahead to work with the state-controlled oil producer, with restrictions such as a prohibition on transactions with Chinese-tied entities.  

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Exxon’s adjusted fourth-quarter net income of $1.71 a share was 2 cents higher than the average estimate in a Bloomberg survey. Chevron earned $1.52 a share, 14 cents higher than expected.

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For both companies, debt ratios crept higher during the final three months of 2025. Exxon and Chevron stocks were down 1.5% and 0.4%, respectively, in pre-market trading Friday.

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“We’re capturing more value from every barrel and molecule we produce and building growth platforms at scale,” Chief Executive Officer Darren Woods said in a statement. The strategy is “creating a long runway of profitable growth through 2030 and beyond.” 

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Exxon has a broader refining footprint than its peers, which enabled it to benefit from rebounding fuel-making margins at the end of 2025. On Friday, the company stuck with its $20 billion-a-year share buyback program and expects to maintain the payout at least through the end of this year under “reasonable market conditions.” 

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Despite Woods’ bullish outlook, full-year profit dropped 10% to $30.1 billion due to lower oil prices and chemical margins as well as “growth-related costs,” the company said. Capital spending is seen around $28 billion this year, down from last year’s $29 billion. 

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Meanwhile, Chevron increased production by more than 20% from a year earlier to the equivalent to 4.05 million barrels a day as new supplies came online from places like Tengiz in Kazakhstan, as well as the Hess portfolio.