*

Exxon's Q3 profits down 5% yr/yr, Chevron's ( CVX ) off 21% on

weak

refining margins

*

But US oil majors outrun European rivals that bet on

renewables

*

Exxon Q3 output soars over 24% yr/yr to record 4.6 million

boepd

*

Chevron ( CVX ) Q3 output jumps 14% yr/yr to record 1.61 million

boepd

*

Oil increases set to be tested by slowing demand, OPEC

decision

By Shariq Khan

NEW YORK, Nov 1 (Reuters) - U.S. oil producers Exxon

Mobil ( XOM ) and Chevron ( CVX ) posted better-than-expected

third-quarter profits on Friday, outperforming their European

rivals, as record high oil production cushioned the blow from a

plunge in fuel margins.

The two focused on expanding oil and gas production as

rivals BP and Shell spent heavily on wind, solar

and renewables that have yet to pay off. Both U.S. oil firms

have meanwhile benefited from acquisitions of smaller oil

producers.

Still, their surging production could soon face a challenge

from uncertain demand, especially in top oil importer China, and

the potential for OPEC to lift production curbs as soon as next

month. The group is expected to delay a plan to add 180,000

barrels per day amid concerns over weak demand and oversupply.

Exxon pumped a record 4.6 million barrels of oil equivalent

per day (boepd) in the third-quarter, up more than 24% from a

year-ago, as its $60 billion bet on Pioneer Natural Resources

and purchase of Denbury paid dividends.

Chevron ( CVX ), whose $53-billion takeover of Hess has been

held up, posted a 14% increase in third-quarter output to a

record 1.61 million boepd, mostly from gains in its U.S. shale

business. It added a drilling rig in the Permian basin last

quarter and will begin a production expansion in Kazakhstan next

quarter.

Both companies reported lower year-over-year profits as weak

global refining margins that hit BP and TotalEnergies

hard cut their oil earnings. Exxon's third-quarter profits were

5% lower than last year, while Chevron's ( CVX ) fell 21%.

Their declines were smaller than Wall Street expectations

and those reported by top European rivals. BP this week reported

a 30% drop in profits from a year ago, and TotalEnergies posted

a 37% decline in adjusted net income.

Exxon's $1.92 per share profit was four cents higher than

Wall Street's outlook, whereas Chevron's ( CVX ) $2.51 per share

adjusted income was well ahead of analysts' average estimates of

$2.42, according to LSEG data. Both companies' shares rose

nearly 2% in premarket trading.

Both pumped record amounts of oil and gas from the Permian

Basin, the top U.S. shale field. Exxon's output from the basin,

which spans across Texas and New Mexico, hit a record 1.4

million boepd.

Exxon is not planning to take its foot off the gas.

"We see tremendous opportunities to invest in profitable

growth in both our existing and new businesses," said finance

chief Kathryn Mikells.

Chevron ( CVX ) said its output in the Permian jumped by 22% to a

record 950,000 boepd, helped by last year's acquisition of PDC

Energy, and is on track to 1 million boepd in the field next

year.