ExxonMobil Holdings Corp. and Chevron Corp. plowed blowout profits into debt reduction rather than huge buyback increases in a sign of Big Oil's caution about how long war-driven price rallies will last.

Both companies reported record quarterly earnings fueled by soaring crude prices following Russia's invasion of Ukraine. Instead of aggressively boosting shareholder returns through expanded buyback programs, management teams prioritized strengthening balance sheets.

ExxonMobil reduced its net debt to $20.6 billion, the lowest level in years, while Chevron cut its net debt ratio to 12.3%. The moves reflect executive concerns that geopolitical volatility may not sustain elevated energy prices indefinitely.

Analysts noted the restraint marks a departure from previous cycles when oil majors rapidly increased distributions during price spikes. The strategy signals Big Oil expects a potentially shorter upcycle than in past decades.