A multimillion-barrel oil glut weighed on results at industry giants Exxon Mobil (XOM) and Chevron (CVX) in 2025, with both companies reporting annual profit declines but talking up diversification efforts as the US AI build-out and potential regime change in Venezuela opened opportunities for the global energy sector.
Exxon reported adjusted annual profits that tallied $30.1 billion, down from $33.5 billion a year ago, while Chevron reported an adjusted profit of $13.5 billion, down from $18.3 billion in 2024.
For the quarter, both companies topped expectations, with Exxon reporting adjusted EPS of $1.71 against forecasts for $1.68, while Chevron earned $1.52 per share, better than the $1.44 expected.
In 2025, the price of oil fell about 15%, with the price of Brent crude, the international benchmark, averaging $69 a barrel for the year, the lowest annual average since 2020, according to the EIA.
The agency also noted that the global supply of oil outstripped demand in each quarter last year. Going back to the fourth quarter of 2024, the global industry has produced more oil than is being consumed for five straight quarters.
Shares of Exxon fell before flipping to a pickup of 0.9% on Friday following the results, while Chevron stock rose 3.4%. Over the last year, Exxon shares have outpaced the S&P 500, rising about 29%. Chevron stock is up 13% over that period.
On a call with analysts, Exxon said it reached its highest full-year net production in more than 40 years, at 4.7 million oil-equivalent barrels per day. The company plans to spend $27 billion-$29 billion in capital expenditures in 2026; it spent $29 billion in 2025.
Asked about the prospect of the Permian basin — the company’s productive oilfield in the US — nearing peak production, Exxon CEO Darren Woods said, “Simply put, there is no near-term peak Permian for us.”
Notably missing on Exxon’s call was any substantive commentary from Woods or other company executives on Venezuela.
Woods took some blowback from President Trump after calling the country “uninvestable” during a meeting of oil executives at the White House following the arrest of its president, Nicolás Maduro.
Instead, Woods touted new projects the company has brought online, like its Golden Pass LNG facility in Texas and its “Proxxima” chemical products platform.
Woods also said that, given Exxon’s efforts in power generation technology, the company is in “position to have really substantive conversations with some of the hyperscalers.”
“Our transformed company will continue to build on this success in 2026 with higher structural earnings power, stronger mix, lower breakevens, and a portfolio designed to perform across commodity cycles,” Woods added.
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