Exxon and Chevron report massive profits after Trump brags U.S. energy companies are ‘making a freaking fortune’ just before midterms

ExxonMobil and Chevron announced record profits on Friday, totaling almost $10 billion to over $15 billion, due to the ongoing Iran war and its impact on oil prices. President Donald Trump has been highlighting the substantial earnings of U.S. oil companies prior to the November 3 midterm elections. The war has driven oil prices above $100 per barrel, with gasoline and diesel costs hitting autumn and all-time highs respectively.

Exxon reported a profit of $15.4 billion, nearly double the $7.5 billion earned during the same quarter last year, while Chevron's earnings were $9.9 billion, up from $3.5 billion a year ago. Exxon CEO Darren Woods emphasized the importance of efficiently growing advantaged production to maintain market supply, citing a large refining expansion in Beaumont, Texas as a key factor in preventing prices from rising further.

The earnings reports from other major oil companies, including London-based Shell and BP, also reflect strong performance during this period. Despite the profits, the companies have refrained from directly bragging about the financial gains from the Iran war, as they do not control global markets and are maximizing profits in a favorable commodities environment.

Exxon's stock has increased by 62% in 12 months, with a 1% rise on Friday, while Chevron's stock is up 53% in the same period. However, companies with a heavier focus on oil refining have excelled, with Phillips 66 and Valero Energy reporting their most profitable quarters ever, generating $5.6 billion and $6.8 billion respectively.

Valero's market cap has risen by 140% in the past year, with the company continuing to grow by acquiring mothballed refineries at a reduced cost. Despite the current benefit from global conflicts, oil CEOs expect elevated margins to persist in the short term due to the 10% of global refining capacity being offline, primarily in the Middle East and Russia.