ExxonMobil (NYSE:XOM) shares gained more than 1% in premarket trading on Friday after the US energy giant reported third-quarter 2026 earnings above analyst expectations, supported by sharply higher refining margins amid ongoing conflicts in the Middle East and Ukraine.
The company posted adjusted earnings per share of $4.23, exceeding the Bloomberg consensus estimate of $4.13.
Stronger diesel and gasoline prices, driven by disruptions to fuel production and supply, helped lift profitability across ExxonMobil’s refining operations.
Refining Margins Benefit From Global Supply Disruptions
The ongoing US-Israeli conflict with Iran and Russia’s war in Ukraine have disrupted operations at critical fuel-producing facilities, contributing to higher prices for refined petroleum products.
These developments have strengthened refining margins, allowing energy companies to benefit from the difference between crude oil costs and the selling prices of products such as diesel and gasoline.
Earlier this month, ExxonMobil indicated that improved refining margins could contribute approximately $4.5 billion to its third-quarter results, following a $4.1 billion benefit in the preceding quarter.
The stronger performance followed similarly favourable refining results reported by other major energy companies, including Shell and TotalEnergies.
ExxonMobil Plans $9.4 Billion in Shareholder Returns
Supported by higher earnings, ExxonMobil announced plans to distribute $4.3 billion in dividends and repurchase approximately $5.1 billion of its shares.
The combined $9.4 billion in planned shareholder returns highlights the company’s continued focus on returning capital to investors.
ExxonMobil’s stronger-than-expected earnings reinforced the positive impact of elevated refining margins on major oil producers, although the outlook remains sensitive to geopolitical developments and changes in global fuel prices.