ExxonMobil, Chevron Post Strong Profits Despite California Hits

ExxonMobil made news in early January when it said it would be forced to take a major, $2 billion impairment hit against its 2023 earnings related to its operations in the anti-oil and gas state of California. Efforts by Gov. Gavin Newsom’s government to force the shrinking number of oil and gas companies still active in the state with draconian regulation and taxation also forced Chevron to take an even bigger, $4 billion hit related to its own operations in the state.

That major impairment charge played a significant role in cutting Chevron’s 2023 profits down from 2022. In total, the San Ramon-based major reported profits of $21.3 billion for 2023, down 20% from the record $26.3 billion it recorded the previous year. But Chevron’s profits rose in the wake of the announcement, which still beat market expectations.

Houston-based ExxonMobil, meanwhile, also beat expectations by announcing robust profits for 2023 of $36 billion, well below the all-time record $56 billion the company recorded in 2022, but impressive in light of the significant drop in prices for both oil and natural gas during 2023.