ExxonMobil has reported better-than-expected earnings for the third quarter of 2026, as a sharp increase in refining profits helped offset weaker earnings from its oil and gas production business. The US energy major benefited from higher fuel prices and stronger refining margins amid disruptions to global energy supplies caused by conflicts in the Middle East and the Russia-Ukraine war.
The company posted adjusted earnings of $17.5 billion for the September quarter, exceeding the average analyst estimate of $16.6 billion compiled by LSEG. Adjusted earnings per share stood at $4.23, beating the market expectation of $4.08.
Reported net income was $15.4 billion, or $3.72 per share. The results highlight how the changing global energy market has shifted the balance of ExxonMobil’s earnings, with its refining operations becoming a major source of profit during the quarter.
The biggest contribution came from the company’s downstream business, which includes refining and fuel-related operations. Adjusted earnings from its Energy Products segment climbed to $9.1 billion, compared with $4.1 billion in the June quarter. This represented an increase of around 120% sequentially.
The improvement came as attacks on energy infrastructure and disruptions to fuel production tightened supplies of diesel and other refined products. The US-Israeli war involving Iran and Ukrainian strikes on Russian refineries have affected global refining capacity, pushing up fuel prices and improving margins for companies that process crude oil into finished products.
For ExxonMobil, the strong refining performance was significant because it generated more earnings from fuel-making operations than from its traditional oil and gas production business. The company earned $7.3 billion from its upstream segment, which covers exploration and production, down 20% from the previous quarter.
Lower benchmark Brent crude prices compared with the June quarter contributed to the decline in upstream earnings. The contrast between the two businesses demonstrates the advantage of ExxonMobil’s integrated energy model, which allows it to earn money from different stages of the oil and gas supply chain.
The company’s refining operations also benefited from strong utilisation levels. ExxonMobil said its US Gulf Coast refineries operated at 100% crude-unit utilisation during the quarter. The facilities also recorded their second-highest diesel production level on record in the region.
ExxonMobil produced around 4.5 million barrels of oil equivalent per day during the September quarter, broadly unchanged from the previous three months. This indicates that the improvement in overall earnings was driven more by stronger refining margins than by a significant increase in production volumes.
The company also reported $1.3 billion in adjusted earnings from its Specialty Products business, up 32% from the June quarter. However, its chemicals business faced weaker margins, reflecting differences in market conditions across the company’s operations.
Cash generation remained strong during the period. ExxonMobil reported operating cash flow of approximately $25.7 billion and free cash flow of $19.1 billion. The company distributed $9.4 billion to shareholders through dividends and share repurchases.
This included $4.3 billion in dividend payments and $5.1 billion in share buybacks. ExxonMobil also announced plans to repurchase $20 billion worth of shares in 2027, subject to market conditions. The programme signals the company’s intention to continue returning cash to investors while maintaining its investment plans.
The company declared a fourth-quarter dividend of $1.07 per share, an increase of around 4% from the previous payout. The dividend will be paid on December 10 to shareholders on record as of November 16.
ExxonMobil has also strengthened its balance sheet by reducing net debt. Net debt stood at approximately $22.1 billion at the end of September, down by nearly $11 billion since the beginning of the year. The figure reflects total debt of $34.3 billion and cash holdings of $12.2 billion.
Chairman and Chief Executive Officer Darren Woods said the company continued to meet global energy requirements through its scale, operational capabilities and investments. He also highlighted the role of technology and structural cost savings in improving the company’s earnings potential.
According to the company, structural cost savings have reached $16.9 billion since 2019. ExxonMobil said these improvements, along with investments in production and refining, have strengthened its ability to respond to changing market conditions.
The company is also working to increase fuel supplies. Investments at its Baytown complex in Texas are expected to support higher production, with ExxonMobil indicating that US distillate output could increase by another 100,000 barrels per day through refinery projects. Distillates include products such as diesel and heating oil.
However, the unusually strong refining margins may not last indefinitely. Energy executives have indicated that margins could gradually return towards normal levels as damaged facilities are repaired and global fuel supplies improve. The timing will depend on geopolitical developments, refinery operations and market demand.
ExxonMobil’s latest results underline the growing importance of refining in its earnings mix. While oil and gas production remains central to its business, the September quarter showed how fuel shortages and higher refining margins can reshape profitability across the global energy industry.