Shell vs ExxonMobil Q3 2026 Results: The Same Quarter on One Basis

Profit: derivatives moved the two in opposite directions

Both companies strip price-timing effects out of their adjusted profit. In this quarter those effects pulled the reported figures apart.

Shell removes a $976 million gain on commodity derivatives and $442 million from its current cost of supplies adjustment, which strips inventory price effects. Exxon adds back $2,541 million of "timing effects", mainly losses on derivatives not yet settled, which it expects to reverse in later quarters.

Below the price effects, both strip the same kinds of item. Shell's $873 million of divestment gains were more than offset by $926 million of net impairments and $130 million of restructuring. Exxon removes a $675 million gain on asset sales and adds back $226 million of other charges.

Because the two adjusted measures remove the same categories this quarter, the adjusted comparison is the closer like-for-like one. Exxon earned about $6.7 billion more than Shell, not the $3.4 billion the reported figures show.

Cash: two adjustments, both in Shell's favor

Shell's free cash flow is its operating plus investing cash flow. Two differences from Exxon's figure matter this quarter.

• Interest. Shell reports interest paid in financing, so its $954 million of interest never enters free cash flow. Exxon's operating cash flow is after interest. Moving Shell's interest in lowers its figure.
• The ARC Resources acquisition. Shell's $7.9 billion of capital spending in the quarter includes the $3.3 billion of cash it paid for ARC Resources, which completed on 2 September. Exxon made no comparable acquisition. Taking the deal out raises Shell's figure.

Net of both, Shell's free cash flow on one definition is up to $18.7 billion, against Exxon's $19.1 billion. The published gap of $2.8 billion shrinks to about $0.4 billion. "Up to" because Shell does not disclose how much cash came with ARC.

Exxon paid out 49% of its free cash flow to shareholders. Shell paid out 33% of its published figure and 29% on one definition.

Debt: leases decide who owes more

Shell's net debt of $39.7 billion includes $34.1 billion of lease liabilities. ExxonMobil's $22.1 billion includes none.

Take leases out of both, and Shell's net debt is $5.6 billion, a quarter of Exxon's. Put leases into both, adding the $6.8 billion of operating lease liabilities in Exxon's last annual report, and Shell's is $39.7 billion against Exxon's $28.9 billion.

Shell's lease figure is also moving. Its index-linked vessel leases rose by $7.7 billion in the first nine months of 2026 as shipping rates climbed with the Middle East conflict, including $5.4 billion of non-cash increases in the third quarter alone. Part of the change in Shell's headline net debt is a shipping bill, not borrowing.

ARC Resources brought $2.5 billion of net debt and leases with it in September, of which Shell repaid $1.9 billion of debt before the quarter ended.

What to watch in the fourth quarter

• ExxonMobilExxon's $2.5 billion of timing effects are expected to reverse in later periods. If they do, Exxon's reported profit benefits and its adjusted profit does not.
• ShellShell expects a non-cash loss of about $6.4 billion in the fourth quarter on the transition of its Dutch pension plan, subject to remeasurement.
• ShellARC Resources' first full quarter inside Shell. Shell paid $10.6 billion of the $13.9 billion equity price in new shares, so per-share figures move as well as totals.
• Shell and ExxonMobilBuybacks. Shell has launched a $5.0 billion programme for the fourth quarter. Exxon plans $20 billion of repurchases in 2027.

How Rebase does this

Rebase maps every filing, IFRS or US GAAP, onto one template. Price-timing effects, disposal gains, interest, acquisitions and leases each get their own line, so two companies' quarters can be compared on the same definitions within days of the results, with every figure linked to the page it came from.

Sources: Shell plc, third quarter 2026 and nine months unaudited results (Form 6-K), including the reconciliation of income to Adjusted Earnings, identified items, condensed statement of cash flows, net debt and lease liabilities; ExxonMobil Holdings Corporation (parent of Exxon Mobil Corporation since 1 July 2026), third quarter 2026 results (Form 8-K), including the reconciliation to Adjusted Earnings, estimated timing effects, free cash flow and balance sheet. Exxon's operating lease liabilities of $6,834 million are at 31 December 2025, from its FY2025 Form 10-K; the September 2026 balance is not in the quarterly release. Shell's one-definition free cash flow adds back the full $3,336 million cash consideration for ARC Resources and is an upper bound.