Chevron reported first-quarter earnings of $2.2 billion on Friday, down from $3.5 billion a year earlier, but said performance remained “solid” despite geopolitical disruptions and market volatility.
The U.S. oil major posted adjusted earnings of $2.8 billion for the quarter, compared with $3.8 billion a year earlier, as higher production and refining margins were offset by unfavorable timing effects and a $360 million legal reserve.
“Strong operating results in the United States, particularly following the integration of Hess, and continued growth in the Gulf of America and Permian Basin, drove higher production while maintaining financial flexibility,” Chief Executive Mike Wirth said.
Chevron CEO: Guyana’s rise in global oil industry ‘extraordinary’︱OilNOW
Chevron’s total oil and gas production rose 15% globally and 24% in the United States, supported by the integration of Hess and output growth from key U.S. basins. U.S. production exceeded two million barrels of oil equivalent per day for a third consecutive quarter.
Upstream earnings climbed to $3.9 billion, driven by higher volumes, while downstream operations posted a loss of $817 million, weighed by weaker international margins and higher costs.
Cash flow from operations fell to $2.5 billion from $5.2 billion a year earlier, largely due to higher working capital outflows tied to rising commodity prices. Adjusted free cash flow remained steady at about $4.1 billion.
Chevron returned $6.0 billion to shareholders during the quarter through dividends and share buybacks, extending its streak of returning more than $5 billion per quarter to 16 consecutive periods.
The company said U.S. refinery throughput exceeded 1 million barrels per day for a fifth straight quarter and hit a record in March.
Wirth said Chevron continues to monitor developments in the Middle East, stressing the need to safeguard operations amid an “unpredictable external environment” and to maintain disciplined investment to ensure energy supply and security.
Chevron is a major player that gained a foothold in Guyana after winning a legal battle against ExxonMobil over a 30% stake owned by Hess in the prolific Stabroek Block. Following the 2025 conclusion of the arbitration, Chevron completed its acquisition of Hess and is a co-venturer of ExxonMobil and CNOOC in the Guyana asset, where 11 billion oil-equivalent barrels were discovered since 2015, and oil production has grown to more than 900,000 barrels per day.
