Cash flow from operations jumped to $22.6 billion from $8.6 billion a year earlier. Free cash flow, after $4.5 billion of capital expenditure, was $18.1 billion. Management directed $8.4 billion of that cash to debt reduction, retiring more than it returned to shareholders via dividends and buybacks ($6.6 billion). Structural cost reductions reached a $3 billion annual run rate six months ahead of schedule, and Hess synergies hit $1.5 billion annually — 50% above the original target and achieved a year after closing.
Brent crude averaged $104 per barrel during the quarter, up from $68 in Q2 2025, but the price environment has since shifted. In early August, Brent spiked to $86.33 on heightened war risk, then fell more than 5% to about $83.49 after the U.S. paused planned strikes on Iran and OPEC+ agreed to raise output quotas by 188,000 bpd from September. Goldman Sachs sees Brent trading in an $80–$90 range until a nuclear deal is confirmed or a major escalation occurs. The Strait of Hormuz remains virtually shut, with non-Iranian vessel transits near 10% of pre-crisis levels and LNG exports down 95%.