Oil Giants Exxon, Chevron Post Lower Annual Profits Amid Price Slump, Pivot to New Ventures
Two of the world's largest energy companies, Exxon Mobil and Chevron, closed 2025 with lower annual profits, pressured by a prolonged slump in oil prices. However, strong fourth-quarter performances and a strategic push into new energy sectors and international opportunities offered a glimpse into their evolving playbooks.
Exxon reported adjusted earnings of $30.1 billion for the year, down from $33.5 billion in 2024. Chevron's annual profit fell to $13.5 billion from $18.3 billion. The decline tracks a roughly 15% drop in oil prices last year, with Brent crude averaging $69 a barrel—its lowest annual average since the pandemic year of 2020, according to the U.S. Energy Information Administration. The agency noted a persistent global supply surplus that has lasted five consecutive quarters.
Despite the annual dip, both firms beat Wall Street expectations for the final quarter. Exxon posted adjusted earnings per share of $1.71, above the $1.68 forecast, while Chevron earned $1.52 per share, topping estimates of $1.44.
In post-earnings commentary, the companies charted divergent strategic paths. Exxon CEO Darren Woods emphasized record annual production and investments beyond traditional oil and gas. "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 told analysts. He highlighted the startup of the Golden Pass LNG export facility in Texas and a new chemicals platform called "Proxxima," and suggested Exxon's power generation technology could lead to "substantive conversations" with major data center operators.
Notably absent was detailed discussion on Venezuela, where Exxon has no current operations. Woods had previously drawn political scrutiny after calling the country "uninvestable."
Chevron, in contrast, leaned into its unique position as the only U.S. major still operating in Venezuela. CEO Mike Wirth projected potential to grow production there by up to 50% over the next 18-24 months, stating, "We remain committed to its present... and we stand ready to help it build a better future."
In a notable shift, Chevron also signaled a return to frontier exploration, listing new oil and gas prospects from Brazil to Namibia. Simultaneously, it promoted "new energies" ventures in power, lithium, and hydrogen, linking them to supporting U.S. data center growth.
The market reaction was mixed: Exxon shares dipped 1.5% Friday, while Chevron's rose 1%. Over the past year, Exxon has significantly outperformed the S&P 500.
Reader Reactions:
Michael R., Energy Sector Analyst in Houston: "The quarterly beats show operational resilience, but the annual story is all about price volatility. Their diversification into LNG, power, and minerals isn't just PR—it's a necessary hedge for the energy transition."
Sarah Chen, Portfolio Manager at Greenleaf Capital: "Chevron's aggressive Venezuela bet and return to exploration is a huge risk. It feels like a pivot away from the capital discipline they preached for years. The market seems unsure how to price this."
Gregory "Bull" Masterson, Independent Oil Trader: "This is pathetic! Billions in profit and they're whining about prices? They're using the 'energy transition' as a cover. Exxon's CEO is chasing data center fads while Chevron is diving back into political jungles. Shareholders should demand a return to core drilling, not this scattered 'everything' strategy."
Dr. Elena Rodriguez, Geopolitical Risk Consultant: "The divergent approaches to Venezuela are fascinating. Chevron is banking on geopolitical stabilization, while Exxon is completely de-risking from it. This will be a real-time case study in how majors manage political exposure."
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at [email protected].
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