Financial Data and Key Metrics Changes - Chevron reported earnings of $3.5 billion or $2 per share for Q1 2025, with adjusted earnings of $3.8 billion or $2.18 per share, reflecting a $200 million increase in adjusted earnings compared to the previous quarter [9][12] - Cash returned to shareholders reached $6.9 billion through dividends and buybacks, marking twelve consecutive quarters of over $5 billion returned [5][6] - Organic CapEx was $3.5 billion, the lowest quarterly total in two years, while inorganic CapEx was approximately $400 million [10][11] Business Line Data and Key Metrics Changes - Adjusted upstream earnings remained flat compared to the last quarter, with higher realizations offset by lower liftings and affiliate earnings [12] - Adjusted downstream earnings increased due to improved refining margins and lower maintenance costs [12] - First quarter oil equivalent production was flat compared to the previous quarter, with growth expected to resume in the Permian in Q2 2025 [13] Market Data and Key Metrics Changes - Chevron achieved first oil at Ballymore in the Gulf of America, contributing to expected production growth to 300,000 barrels of oil equivalent per day by 2026 [7][46] - The expansion of the Pasadena refinery has strengthened the Gulf Coast value chain, allowing for increased capacity and integration with Pascagoula [8][109] Company Strategy and Development Direction - Chevron's strategy focuses on execution to unlock industry-leading cash flow growth, with a capital program directed towards short-cycle assets and deepwater projects [6][14] - The company aims for structural cost savings of $2 billion to $3 billion by the end of next year, alongside a $2 billion reduction in CapEx budgets [6][14] - Chevron is expanding its pipeline of future opportunities, adding over 11 million net exploration acres since the start of last year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and commodity cycles, emphasizing cost and capital discipline [6][14] - The company remains well-positioned to generate cash flow growth, even in lower price environments, with a strong balance sheet and a net debt ratio of 14% [14][104] - Management highlighted the importance of maintaining flexibility in capital spending to adapt to market conditions [101][104] Other Important Information - Chevron's guidance for annual buybacks remains unchanged at $10 billion to $20 billion, with expected buybacks of $2.5 billion to $3 billion in Q2 2025 [14][15] - The company is actively engaging in power ventures, with plans for a floating production unit in Cyprus expected to produce 800 million cubic feet of gas per day [60][94] Q&A Session Summary Question: Update on TCO and production levels - Management expressed satisfaction with the startup performance at TCO, achieving nameplate capacity in less than 30 days and positive discussions regarding concession extensions [18][20] Question: Position in California refining market - Management noted a strong position with two refineries and highlighted challenges posed by state policies affecting investment [23][24] Question: Financial framework and buyback decisions - Management reiterated the importance of maintaining a balance between buybacks and capital discipline, with a focus on long-term financial priorities [30][32] Question: Impact of macroeconomic factors on production - Management discussed the implications of potential production losses in Venezuela and Kazakhstan, emphasizing the value of TCO production to the government [41][43] Question: Future prospects in the Gulf of Mexico - Management provided insights on Ballymore's production ramp-up and the potential for significant output from the project [46][47] Question: Update on power ventures - Management confirmed strong demand for power projects and ongoing discussions with prospective customers, aiming for a final investment decision by year-end [92][94] Question: Tariff impacts on CapEx - Management indicated limited direct exposure to tariffs, with most costs being service-related and local sourcing mitigating potential impacts [121][123]

Financial Data and Key Metrics Changes - Chevron reported earnings of $3.5 billion or $2 per share for the first quarter, with adjusted earnings of $3.8 billion or $2.18 per share, reflecting a $200 million increase from the previous quarter [11][12] - Cash returned to shareholders reached $6.9 billion through dividends and buybacks, marking twelve consecutive quarters of over $5 billion returned [6][7] - Organic CapEx was $3.5 billion, the lowest quarterly total in two years, while inorganic CapEx was approximately $400 million [11][12] Business Line Data and Key Metrics Changes - Adjusted upstream earnings remained flat compared to the last quarter, with higher realizations offset by lower liftings and affiliate earnings [13] - Adjusted downstream earnings increased due to improved refining margins and lower maintenance costs [13] - First quarter oil equivalent production was flat compared to the previous quarter, with growth expected to resume in the Permian in the second quarter [14] Market Data and Key Metrics Changes - The expansion of the Pasadena refinery has strengthened the Gulf Coast value chain, allowing for increased production capacity [10] - The company achieved first oil at Ballymore, with expectations to increase production to 300,000 barrels of oil equivalent per day by 2026 [9][49] - Chevron has added over 11 million net exploration acres since the start of last year, enhancing its future opportunity pipeline [10] Company Strategy and Development Direction - Chevron's strategy focuses on execution to unlock industry-leading cash flow growth, with a disciplined approach to capital and cost management [8][14] - The company aims to deliver growth projects expected to generate an incremental $9 billion of free cash flow in 2026 [15] - Chevron's balance sheet remains strong, with a net debt ratio of 14%, well below the target range of 20% to 25% [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and commodity cycles, emphasizing the importance of cost and capital discipline [6][8] - The company anticipates share repurchases of $2.5 billion to $3 billion in the second quarter, maintaining a robust buyback program [16][18] - Management highlighted the positive outlook for negotiations regarding the concession extension in Kazakhstan, indicating a strong partnership with the government [22][23] Other Important Information - Chevron's capital expenditure budget for 2025 represents a $2 billion reduction from the previous year, with targeted structural cost savings of $2 billion to $3 billion by the end of next year [8] - The company is actively engaging in the power solutions sector, with plans to secure competitive returns on new projects [92][95] Q&A Session Summary Question: Update on TCO and production levels - Management expressed satisfaction with the startup performance at TCO, achieving nameplate capacity in less than thirty days and discussing future concession negotiations with the Kazakh government [20][22] Question: Position in California refining market - Management noted a strong position in California with two well-scaled refineries, while expressing concerns over state policies affecting investment [26][27] Question: Financial framework and buyback strategy - Management reiterated the importance of maintaining a consistent buyback strategy through cycles, with a focus on dividend growth and capital discipline [32][34] Question: Impact of macroeconomic factors on production - Management discussed the implications of potential production losses in Venezuela and the dynamics of OPEC+ on market share [41][46] Question: Future production in the Gulf of Mexico - Management highlighted the successful startup of Ballymore and the expectation of ramping production to 300,000 barrels per day [49] Question: Permian well performance and outlook - Management reported strong performance in the Delaware Basin and anticipated similar results for 2025 [52][55] Question: Update on power ventures - Management confirmed strong demand for power solutions and progress towards final investment decisions by year-end [92][95] Question: Tariff situation and cost control - Management is actively monitoring tariff impacts and taking actions to mitigate costs [120]

Core Insights - Chevron reported revenue of $47.61 billion for the quarter ended March 2025, a decrease of 2.3% year-over-year, and EPS of $2.18, down from $2.93 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $48.66 billion by 2.15%, while the EPS exceeded the consensus estimate of $2.15 by 1.40% [1] Financial Performance - Chevron's total net oil-equivalent production was 3,353 million barrels per day, surpassing the average estimate of 3,297.78 million barrels per day [4] - U.S. upstream net oil-equivalent production was 1,636 million barrels per day, slightly below the average estimate of 1,651.27 million barrels per day [4] - International upstream net oil-equivalent production was 1,717 million barrels per day, exceeding the average estimate of 1,667.46 million barrels per day [4] - Worldwide net natural gas production was 8,230 Mcf/D, higher than the estimated 7,997.44 Mcf/D [4] - Sales and other operating revenues were reported at $46.10 billion, slightly below the average estimate of $46.45 billion, reflecting a year-over-year change of -1% [4] Market Performance - Chevron's shares have returned -12.7% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Chevron (CVX) came out with quarterly earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.15 per share. This compares to earnings of $2.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.40%. A quarter ago, it was expected that this oil company would post earnings of $2.19 per share when it actually produced earnings of $2.06, delivering a surprise of -5.94%.Over the last four quarters, the company has su ...

Financial Performance - First quarter 2025 earnings were $3.5 billion, or $2.00 per diluted share[21] - Adjusted earnings for the first quarter 2025 were $3.8 billion, or $2.18 per diluted share[21] - Cash flow from operations excluding working capital was $7.6 billion[21] - The company paid dividends of $3.0 billion and repurchased shares worth $3.9 billion[21] Capital and Investment - Total capital expenditure for the first quarter 2025 was $3.9 billion, with organic capital expenditure at $3.5 billion[21] - The company's share repurchases amounted to $3.9 billion in 1Q25[21] - TCO free cash flow is projected to be distributed in the form of fixed loan repayments and dividends, with a net change in cash of $5.0 billion[46] Production and Operations - Project start-ups include TCO, Anchor, Whale and Ballymore in the Gulf of America, and Pasadena Refinery LTO expansion, increasing light crude processing capacity from 85 MBOED to 125 MBOED[15] - Worldwide net oil & gas production saw changes due to factors like TCO, Gulf of America, asset sales, and turnarounds, with Brent prices at $76/BBL[32] - Turnarounds in 2Q25 are expected to impact earnings by $(300) – $(350) million[40] Financial Priorities - The company is focused on growing the dividend consistently, investing capital efficiently, maintaining a strong balance sheet, and repurchasing shares steadily[35] - The net debt ratio as of March 31, 2025, was 14.4%[21]

FILE PHOTO: A Chevron gas station is seen in Austin, Texas, U.S., October 23, 2023.Chevron stock fell on Friday as the oil major's profit declined on the steep decline in oil prices this years. Chevron's net income declined more than 30% to $3.5 billion, or $2 per share, from $5.5 billion or $2.97 per share, in the year-ago period. Excluding one-time items, Chevron earned $2.18 per share.Here is what Chevron reported for the first quarter compared with what Wall Street was expecting, based on a survey of an ...

[First Quarter 2025 Performance Summary](index=1&type=section&id=First%20Quarter%202025%20Performance%20Summary) [Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) Chevron reported Q1 2025 earnings of $3.5 billion, a decrease from $5.5 billion last year, with adjusted earnings also declining, while returning $6.9 billion to shareholders | Indicator | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Earnings** | $3.5 billion | $5.5 billion | | **Earnings Per Share (Diluted)** | $2.00 | $2.97 | | **Adjusted Earnings** | $3.8 billion | $5.4 billion | | **Adjusted EPS (Diluted)** | $2.18 | $2.93 | | **Cash Flow From Operations** | $5.2 billion | $6.8 billion | - CEO Mike Wirth highlighted the company's resilient portfolio and capital discipline, positioning it for industry-leading **free cash flow growth by 2026**[5](index=5&type=chunk) - The company returned **$6.9 billion** in cash to shareholders, comprising **$3.9 billion** in share repurchases and **$3.0 billion** in dividends[6](index=6&type=chunk)[11](index=11&type=chunk) - Key operational updates include production ramp-up at Tengizchevroil (TCO), Permian Basin production growth, and first oil from the Ballymore project in the Gulf of America[5](index=5&type=chunk) [Key Metrics and Business Highlights](index=2&type=section&id=Key%20Metrics%20and%20Business%20Highlights) Worldwide net oil-equivalent production remained flat at 3,353 MBOED, with capital expenditures slightly lower, while advancing strategic initiatives like the Hess stake and Ballymore production | Metric | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Return on Capital Employed (ROCE)** | 8.3% | 12.4% | | **Capital Expenditures (Capex)** | $3.9 B | $4.1 B | | **Free Cash Flow** | $1.3 B | $2.7 B | | **Net Debt Ratio (end of period)** | 14.4% | 8.8% | | **Net Oil-Equivalent Production** | 3,353 MBOED | 3,346 MBOED | - Key business milestones include acquiring **4.99% of Hess Corporation** common stock[11](index=11&type=chunk) - Production started from the Ballymore field in the Gulf of America in April 2025[11](index=11&type=chunk) - Completed the sale of a majority interest in East Texas gas assets[11](index=11&type=chunk) - Announced a simplified organizational structure to reduce structural costs by **$2-3 billion by the end of 2026**[11](index=11&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) [Upstream](index=3&type=section&id=Upstream) Total upstream earnings decreased to $3.8 billion from $5.2 billion, primarily due to lower international earnings from asset sales, affiliate earnings, and unfavorable tax and currency effects [U.S. Upstream](index=3&type=section&id=U.S.%20Upstream) U.S. upstream earnings decreased to $1.86 billion from $2.08 billion due to higher expenses and lower liquids realizations, despite a 63,000 bpd production increase | U.S. Upstream | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Earnings** | $1,858 MM | $2,075 MM | | **Net Oil-Equivalent Production** | 1,636 MBOED | 1,573 MBOED | | **Liquids Realization** | $55.26 /BBL | $57.37 /BBL | | **Natural Gas Realization** | $2.50 /MCF | $1.24 /MCF | - The **63,000 barrels per day increase** in U.S. production was primarily due to higher output in the Permian Basin and Gulf of America, partly offset by lower production in the Rockies[15](index=15&type=chunk) [International Upstream](index=3&type=section&id=International%20Upstream) International upstream earnings fell to $1.9 billion from $3.2 billion due to lower liftings, reduced TCO affiliate earnings, lower realizations, and unfavorable tax/currency impacts, with production down 56,000 bpd | International Upstream | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Earnings** | $1,900 MM | $3,164 MM | | **Net Oil-Equivalent Production** | 1,717 MBOED | 1,773 MBOED | | **Liquids Realization** | $67.69 /BBL | $72.52 /BBL | | **Natural Gas Realization** | $7.12 /MCF | $7.25 /MCF | - The decrease in international production was primarily due to asset sales in Canada and the Republic of Congo, and withdrawal from Myanmar, partly offset by higher production in Kazakhstan[16](index=16&type=chunk) [Downstream](index=4&type=section&id=Downstream) Total downstream earnings decreased to $325 million from $783 million, with both U.S. and international segments experiencing lower earnings due to reduced refined product margins [U.S. Downstream](index=4&type=section&id=U.S.%20Downstream) U.S. downstream earnings dropped to $103 million from $453 million due to lower margins and a legal reserve, despite a 16% increase in refinery crude unit inputs | U.S. Downstream | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Earnings** | $103 MM | $453 MM | | **Refinery Crude Unit Inputs** | 1,018 MBD | 878 MBD | | **Refined Product Sales** | 1,293 MBD | 1,248 MBD | - The **16% increase** in refinery crude unit inputs was primarily due to improved reliability at the El Segundo refinery and increased capacity at the Pasadena refinery[20](index=20&type=chunk) [International Downstream](index=4&type=section&id=International%20Downstream) International downstream earnings fell to $222 million from $330 million due to lower refined product margins and unfavorable foreign currency effects, with refinery crude unit inputs down 5% | International Downstream | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Earnings** | $222 MM | $330 MM | | **Refinery Crude Unit Inputs** | 618 MBD | 651 MBD | | **Refined Product Sales** | 1,398 MBD | 1,430 MBD | - The **5% decrease** in refinery crude unit inputs was primarily due to a planned turnaround at the GS Caltex refinery in South Korea[20](index=20&type=chunk) [All Other](index=4&type=section&id=All%20Other) The 'All Other' segment reported a net charge of $583 million, up from $521 million, driven by increased operating and interest expenses, partially offset by a favorable Hess share valuation | All Other | 1Q 2025 | 1Q 2024 | | :--- | :--- | :--- | | **Net charges** | $(583) MM | $(521) MM | - This segment encompasses worldwide cash management, debt financing, corporate administration, insurance operations, real estate activities, and technology companies[20](index=20&type=chunk) [Detailed Financial Statements and Reconciliations](index=7&type=section&id=Detailed%20Financial%20Statements%20and%20Reconciliations) [Consolidated Statement of Income](index=7&type=section&id=Consolidated%20Statement%20of%20Income) Q1 2025 total revenues were $47.6 billion, slightly down from $48.7 billion, with net income attributable to Chevron significantly decreasing to $3.5 billion from $5.5 billion | (Millions of Dollars) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Sales and other operating revenues** | $46,101 | $46,580 | | **Total Revenues and Other Income** | $47,610 | $48,716 | | **Total Costs and Other Deductions** | $42,027 | $40,794 | | **Income Before Income Tax Expense** | $5,583 | $7,922 | | **Net Income Attributable to Chevron** | $3,500 | $5,501 | [Balance Sheet Data and Key Ratios](index=8&type=section&id=Balance%20Sheet%20Data%20and%20Key%20Ratios) As of March 31, 2025, total debt increased to $29.7 billion, raising the net debt ratio to 14.4%, with ROCE at 8.3% and Capex at $3.9 billion | (Millions of Dollars) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $4,638 | $6,781 | | **Total assets** | $256,397 | $256,938 | | **Total debt** | $29,681 | $24,541 | | **Total Chevron stockholders' equity** | $149,244 | $152,318 | | Ratio | 1Q 2025 | 4Q 2024 (EOP) | | :--- | :--- | :--- | | **Debt ratio** | 16.6% | 13.9% | | **Net debt ratio** | 14.4% | 10.4% | | **ROCE** | 8.3% | N/A | [Summarized Statement of Cash Flows](index=9&type=section&id=Summarized%20Statement%20of%20Cash%20Flows) Q1 2025 net cash from operations was $5.2 billion, investing activities used $5.6 billion, and financing used $1.7 billion, resulting in **$1.3 billion** free cash flow | (Billions of Dollars) | Three Months Ended March 31, 2025 | | :--- | :--- | | **Net Cash Provided by Operating Activities** | $5.2 | | **Net Cash Used for Investing Activities** | $(5.6) | | **Net Cash Used for Financing Activities** | $(1.7) | | **Net Change in Cash** | $(2.1) | | (Billions of Dollars) | Three Months Ended March 31, 2025 | | :--- | :--- | | **Net Cash Provided by Operating Activities** | $5.2 | | **Less: Capital expenditures** | $3.9 | | **Free Cash Flow** | $1.3 | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Chevron's reported Q1 2025 net income of $3.5 billion was adjusted to $3.8 billion, excluding $175 million in special items and $138 million in negative foreign currency effects | (Millions of Dollars) | 1Q 2025 | | :--- | :--- | | **Reported Net Income** | $3,500 | | **Add back: Total Special Items** | $175 | | **Add back: Total Foreign Currency Effects** | $138 | | **Total Adjusted Earnings** | $3,813 | - Special items in Q1 2025 included a **$130 million legal reserve** in U.S. Upstream, a **$170 million legal reserve** in U.S. Downstream, and a **$55 million tax item** in International Upstream, partially offset by a **$180 million favorable fair value adjustment** of Hess common stock[36](index=36&type=chunk)

Core Insights - Chevron's adjusted earnings per share for the first quarter were $2.18, exceeding market expectations of $2.11 [1] - The upstream business generated $3.76 billion in earnings for the first quarter, representing a 28% year-over-year decline, while market expectations were $4.13 billion [1]

Key Takeaways Energy companies are expected to face a harsh reporting period. Earnings for the broader Zacks Oil & Energy sector expected to be down -22.7% YoY. XOM and CVX are both two energy titans on the reporting docket this week. Earnings season continues to move rapidly, with a notably rich reporting docket this week. A few big-tech names and representatives from many sectors have delivered their quarterly prints, with next week just as exciting.Among the bunch this week are two energy titans, Exxon ...