Exxon and Chevron Face Profit Decline Amid Oil Price Drop
New York, Friday, 31 October 2025.
Exxon and Chevron report lower Q3 earnings as OPEC+ increases oil production, impacting prices. Despite this, both companies beat Wall Street expectations and set production records.
OPEC+ Production Increase and Its Impact
Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX) recently reported a decline in their third-quarter earnings for 2025, attributing this downturn primarily to falling oil prices. This decline is largely due to the decision by OPEC+ to increase oil production, which has led to an oversupply in the market and subsequently, lower prices. As of the end of October 2025, oil prices were around $60 per barrel, a significant drop from the highs of over $100 per barrel seen in 2022 [1][2].
Earnings Report and Market Reaction
Despite the challenging market conditions, both Exxon and Chevron managed to outperform Wall Street’s profit expectations. Exxon reported earnings per share of $1.88, slightly above the expected $1.83, while Chevron’s earnings per share stood at $1.75, also above the forecasted $1.71 [1][3]. However, the companies’ net incomes fell sharply, with Exxon experiencing a 12% decline in net income to $7.55 billion, compared to $8.6 billion in the same period last year [1].
Production Records and Future Outlook
In contrast to the earnings decline, both Exxon and Chevron set production records. Exxon’s production in its lucrative offshore assets in Guyana reached more than 700,000 barrels per day, while its Permian Basin operations hit nearly 1.7 million barrels per day. Overall, Exxon produced 4.77 million barrels per day in the quarter [1]. Chevron also reported a significant production increase, with an approximate 7% rise compared to the previous year, excluding the impact of its acquisition of Hess [2]. These production milestones illustrate the companies’ strategic focus on maintaining robust output levels despite volatile market conditions.
Strategic Responses and Investor Sentiment
Both Exxon and Chevron have responded to the current market scenario by focusing on cost-cutting and enhancing capital efficiency. Exxon Mobil has implemented a $7 billion cost reduction plan, which is part of its strategy to generate $165 billion in surplus cash by 2030 [4]. Additionally, both companies have committed to increasing shareholder returns, with Exxon raising its quarterly dividend by 4% [3]. These measures have been well-received by investors, as indicated by the companies’ ability to beat profit expectations despite the adverse price environment.