ExxonMobil and Chevron posted fourth-quarter results on Friday that cleared analyst forecasts, proving that sheer volume growth can still deliver in a weak price environment. Brent crude averaged around $73 per barrel during Q4, well below the year-ago quarter, yet both companies raised dividends and signaled confidence in 2026.
Exxon leans on Permian and Guyana
ExxonMobil reported adjusted earnings of $7.3 billion, or $1.71 per share, edging past the $1.68 consensus estimate. Revenue came in at $82.3 billion. Net production hit a quarterly record of 5.0 million barrels of oil equivalent per day, driven by Permian Basin output of 1.8 million boepd and Guyana gross production that reached 875,000 barrels per day after the early startup of the Yellowtail project.
The Pioneer Natural Resources integration delivered $4 billion in annual synergies, nearly double original projections, helping push Exxon's Permian breakeven down to roughly $20 per barrel. Full-year earnings came in at $28.8 billion, down from $33.7 billion in 2024, while shareholder distributions totaled $37.2 billion, including $20 billion in buybacks.
Exxon hiked its quarterly dividend by 4% to $1.03 per share, extending a 43-year streak of annual increases.
Chevron rides Hess deal to output records
Chevron earned $2.8 billion in Q4, or $1.52 per share on an adjusted basis, beating the $1.47 consensus. Production surged 21% year over year to 4.05 million boepd as the completed Hess acquisition added a 30% stake in Guyana's Stabroek block, contributing 261,000 boepd and boosting proved reserves to 10.6 billion barrels.
The Permian Basin averaged 1 million boepd for the full year on 10% less capital than initially budgeted. Chevron returned $27.1 billion to shareholders during 2025 and raised its dividend 4% to $1.78 per share, marking 39 straight years of growth.
Cash flow from operations reached $10.8 billion for the quarter, with free cash flow at $4.2 billion. The company targets $3 billion to $4 billion in structural cost reductions by the end of 2026.
Efficiency over prices
Both companies showed that high-margin barrels and aggressive cost control can cushion even a steep commodity downturn. Exxon's $15.1 billion in cumulative structural savings since 2019 and Chevron's $1.5 billion in 2025 cost cuts point to an industry that has permanently lowered its operating cost base.
WTI crude currently trades near $65, still roughly 10% below year-ago levels. With OPEC+ set to meet Saturday to discuss extending production freezes, both supermajors appear well positioned regardless of which direction the cartel moves.
Exxon guided 2026 capex at $27 billion to $29 billion, while Chevron expects production growth of 7% to 10% year over year. Shares of both companies dipped modestly after the reports, suggesting the market had already priced in a strong quarter.