While the two oil companies reported slight profit losses from the previous quarter, there was a combined $14 billion in profits according to the Q2 reports. Exxon earned $17.9 billion Q2 2022 vs. $7.9 billion in Q2 2023 and Chevron pulled in $11.6 billion Q2 2022 but only $6 billion in Q2 2023.

Between dividends and buybacks, Exxon spent $8 billion and Chevron spent a company record of $7.2 billion. The two companies are sitting on more cash than usual due to last year’s energy price hikes, The Washington Journal reports.

With a settling economy, large cash reserves and promising energy growth, Exxon and Chevron are looking to expand. Exxon and Chevron have each created new energy units dedicated to pursuing and expanding alternative and renewable energy sources in the coming years, including carbon capture and hydrogen. Exxon recently purchased oil producer and pipeline operator Denbury for nearly $5 billion earlier this month, which will expand its carbon capture capabilities.

As the most active oil fields in the United States, the Permian basin of West Texas and New Mexico are being considered for potential deals. The Journal reports, “Conditions are ripe for a deal frenzy in the oil patch this year. The shale industry has shifted from the rapid growth it pursued for more than a decade to a mature business underpinned by fiscal restraint and hefty shareholder payouts. Drilling for new oil discoveries has fallen out of favor with investors, leaving many companies with few options other than to acquire rivals to extend their runway.”