Big Oil's Windfall Profits Fuel Debt Reduction Rather Than Buybacks

The largest US oil companies are reaping massive profits from global energy market disruptions but choosing to use their windfall gains to reduce debt rather than reward shareholders.

ExxonMobil and Chevron, in particular, have taken a cautious approach to their surging earnings, with both companies more than doubling their second-quarter net income.

ExxonMobil lowered its net debt by over $7 billion during the quarter, while Chevron steered a record $8.4 billion into debt reduction, effectively slashing its ratio of net debt to cash flow from operations in half.