Oil Giants ExxonMobil and Chevron Face Profit Plunge as Crude Prices Tank

Energy titans ExxonMobil and Chevron reported significant profit declines for the second quarter, driven by a sharp drop in crude oil prices. ExxonMobil’s net income fell 23% year-over-year to $7.08 billion, while Chevron’s profits plummeted 44% to $2.49 billion. The slump in oil prices, which dipped below $60 per barrel, took a heavy toll on both companies’ bottom lines, highlighting the volatility of the energy sector.

Despite the profit downturn, both companies outperformed Wall Street’s expectations on adjusted earnings per share, with ExxonMobil reporting $1.64 and Chevron at $1.77. ExxonMobil’s revenue dropped 12% to $81.51 billion but exceeded forecasts, while Chevron’s revenue, also down 12% to $44.82 billion, fell short of analyst projections. The mixed results reflect the broader challenges facing the oil industry amid fluctuating commodity prices.

Chevron’s earnings were further strained by a $215 million loss tied to the fair market value of Hess shares, following its $53 billion acquisition of the rival company. The deal, finalized after a contentious battle with ExxonMobil, bolsters Chevron’s portfolio, creating what the company calls “one of the most advantaged and differentiated portfolios in the industry.” However, the integration comes at a time when low oil prices continue to pressure profitability.

Market reactions were muted, with ExxonMobil shares slipping nearly 2% in recent trading but remaining up 2% year-to-date. Chevron’s stock edged lower on Friday but has gained 4% in 2025. As global oil prices remain under pressure, both companies face an uncertain outlook, with investors closely monitoring how they navigate a challenging energy landscape.