Diesel price up 71% from a year ago to about $6.32 a gallon, AAA says

ExxonMobil and Chevron both reported better-than-expected third-quarter results Friday, benefiting from higher fuel prices and record production.

Spring, Texas-based ExxonMobil said net income more than doubled to $3.72 per share in the quarter. On an adjusted basis, profit totaled $4.23 per share, easily topping the average analyst estimate of $4.12 per share. Revenue during the three months ended in September rose 33% to $113.16 billion, also beating estimates.

Beyond the disruption caused by the wars in Iran and Ukraine, which have driven up the cost of fuel, ExxonMobil reported strong production in its fields in Guyana and the Permian Basin in the Southwest. Utilization at its U.S. Gulf Coast refineries was 100%, and U.S. Gulf Coast diesel production ran at the second-highest level on record. Chairman and CEO Darren Woods said investments such as the expansion of the company’s Beaumont refinery in Texas have contributed to an increase in distillate production of approximately 40% since 2019. The company also raised its quarterly dividend to $1.07 and set a $20 billion stock buyback plan.

Houston-based Chevron said it earned $9.9 billion, or $5.06 per share, during the third quarter, as revenue surged 36% to $67.8 billion, handily topping estimates. Crude utilization at Chevron’s U.S. refineries totaled 98%, and the company said it set production records at its Eastern Mediterranean and Australian assets. Overall capital expenditures during the quarter were lower compared with a year ago because it spent less in the Permian Basin.

Chevron, the second-largest U.S. oil company, has had a presence in Venezuela since 1923 and last month announced it will invest $7 billion there over the next five years. Following an accounting-related change during the quarter, its latest results include one month of Venezuelan production. Chairman and CEO Mike Wirth said the company signed agreements to reduce Bakken midstream costs by about 50%, strengthening the asset’s competitiveness; Chevron increased its Bakken holdings in North Dakota and Montana after acquiring Hess Corp. for $53 billion last year.

The reports come as fuel costs climb for consumers. The price of diesel, currently about $6.32 per gallon, is up 71% since last year, according to AAA, and regular gasoline is up about 38% in the past year. In premarket trading Friday, Exxon shares rose 1.9% and were up 64% over the past 12 months, while Chevron shares rose 1.1%.