Big Oil Cuts Debt Amid Geopolitical Uncertainty

Oil majors ExxonMobil and Chevron are using their record second-quarter earnings to strengthen their balance sheets, directing billions of dollars toward debt reduction amid market uncertainty.

ExxonMobil reduced its net debt by more than $7 billion, while Chevron cut debt by a record $8.4 billion, lowering its net debt-to-cash flow ratio by over half.

The two U.S. supermajors more than doubled their net income during the quarter, benefiting from higher crude prices and strong refining margins following prolonged disruptions to global energy markets.

Chevron CEO Mike Wirth expects product markets to remain constrained into the third quarter and potentially beyond, while ExxonMobil's Darren Woods said that he expects the Strait of Hormuz to eventually reopen, but declined to predict when.