RESOLVING THE LEDGER
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Two Houston-area oil giants saw profits soar in the second quarter as global oil prices jumped amid the Iran war—even as local drivers continue paying above $3.50 a gallon for gasoline.
ExxonMobil and Chevron reported billions in earnings Friday, benefiting from higher crude prices, record production and stronger refining margins as conflict in the Middle East disrupted global energy markets.
Exxon, which is headquartered in Spring, reported $14.5 billion in second-quarter profits, more than double the roughly $7.1 billion it earned during the same period last year.
Chevron reported $12 billion in net income, a nearly 400 percent increase from the $2.5 billion it posted in the second quarter of 2025.
The companies' results come as Houston-area drivers continue to feel the effects of higher energy costs. The average price for regular gasoline in the Houston area was about $3.64 per gallon Friday, according to AAA.
The jump in profits was fueled in part by rising crude prices after the Iran war disrupted global energy markets and raised concerns about potential supply shortages.
According to Chevron's second-quarter earnings report, U.S. crude oil futures averaged $92.45 per barrel in the second quarter, up 27 percent from the previous quarter.
Chevron CEO Mike Wirth said the company benefited from strong demand and increased production but warned that global energy markets remain under pressure as disruptions continue.
"We're kind of firing on all cylinders, which is good, because the world needs it," Wirth told CNBC on Friday.
Exxon said its oil production reached its highest level in more than 20 years, excluding disruptions tied to the Middle East.
The company's operations in the Permian Basin—one of the largest oil-producing regions in the world—reached record output levels during the quarter.
Worldwide production totaled about 4.5 million barrels per day, while Chevron reported global production of about 4 million barrels per day.
Chevron's U.S. production reached an all-time high of roughly 2 million barrels per day as exports increased amid global supply disruptions.
Both companies also saw major gains from their refining businesses, which turn crude oil into gasoline, diesel and other petroleum products.
Chevron's refining segment reported $4.9 billion in profits, up from $737 million during the same quarter last year.
Exxon's refining business earned $5.5 billion, compared with a $1.3 billion loss in the first quarter.
Exxon CEO Darren Woods said the company's earnings were affected by the difficulty of predicting prices during a period of major market volatility.
"We have so much disruption," Woods said during an interview with CNBC's "Squawk Box."
While higher oil prices can boost energy company earnings, drivers typically do not see prices change at the pump overnight.
Gasoline prices are affected by a variety of factors, including crude oil costs, refinery operations, transportation expenses, seasonal demand and taxes.
But crude oil remains the largest factor in gasoline prices, so prolonged increases in global oil prices can eventually push fuel costs higher for consumers.
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