Production and Operations - Production totaled 853 MBoe/d, exceeding guidance by 2%[167] - Total production volumes increased by 20% from 700 MBoe/d in 2024 to 836 MBoe/d in 2025, primarily driven by the Grayson Mill acquisition and new well activity[188] - Oil production increased by 18% from 330 MBbls/d in 2024 to 388 MBbls/d in 2025, with significant growth in the Rockies region, which saw a 116% increase[187] - Total production expenses remained stable at $895 million, with a per Boe cost of $6.14 for LOE[177] - Production expenses rose by 18% from $2.302 billion in 2024 to $2.706 billion in 2025, largely due to increased activity in the Rockies and Delaware Basin[192] - Approximately 30% and 35% of anticipated 2025 oil and gas production are currently hedged, respectively[174] Financial Performance - Generated $1.7 billion of operating cash flow and $6.8 billion for the past twelve trailing months[167] - Earnings attributable to Devon were $687 million, or $1.09 per diluted share[167] - Net earnings for the nine months ended September 30, 2025, were $2.1 billion, a decrease from $2.3 billion for the same period in 2024, reflecting a change of approximately 9%[185] - Realized prices for oil decreased by 10% from $42.19 per Boe in 2024 to $37.86 per Boe in 2025, contributing to an $884 million decrease in earnings[189] - Operating cash flow for Q3 2025 was $1.69 billion, compared to $1.66 billion in Q3 2024, and $5.18 billion for the nine months ended September 30, 2025, compared to $4.94 billion in 2024[204][206] - Core earnings attributable to Devon for the three months ended September 30, 2025, were $856 million, or $1.04 per share[247] - EBITDAX for the three months ended September 30, 2025, was $1.86 billion, reflecting strong operational performance[252] Acquisitions and Investments - The acquisition of the Williston Basin business of Grayson Mill was for approximately $5.0 billion, enhancing oil production and operating scale[163] - Devon issued $3.25 billion of debt in Q3 2024 to partially fund the Grayson Mill acquisition and retired $472 million of debt in the same quarter[201] - On August 1, 2025, Devon acquired all outstanding noncontrolling interests in CDM for $260 million, fully attributing future net income and cash flows to Devon[218] Cash Management and Shareholder Returns - Cash-return objectives include opportunistic share repurchases, funding dividends, and repaying debt, with approximately 83% of the $5.0 billion share repurchase program completed[167] - Devon repurchased approximately 23.7 million shares for $800 million in the first nine months of 2025, compared to 16.3 million shares for $744 million in 2024[215] - A cash dividend of $0.24 per share was announced for the fourth quarter of 2025, totaling approximately $150 million[237] - The Board of Directors has authorized a $5.0 billion share repurchase program, with $4.2 billion executed through October 2025[237] Tax and Regulatory - The effective income tax rate for Q3 2025 was 24%, up from 21% in Q2 2025, influenced by the OBBB legislation[184] - For the nine months ended September 30, 2025, Devon's total income tax expense was $600 million, with an effective income tax rate of 22%[202] Asset Management - The company recognized a pre-tax gain of $307 million from the sale of its investment in Matterhorn, recorded as asset dispositions[183] - Asset impairments totaled $254 million in the first quarter of 2025 due to the rationalization of two headquarters-related real estate assets[196] - In Q2 2025, Devon sold its investment in Matterhorn for $372 million, recognizing a pre-tax gain of $307 million ($239 million net of tax) from the asset disposition[200] - Devon generated $134 million from divesting headquarters-related real estate assets and $372 million from the sale of Matterhorn in the first nine months of 2025[210] Financial Position and Outlook - Total debt as of September 30, 2025, was $8.4 billion, with $7.4 billion in fixed-rate debt averaging 5.7%[255] - As of September 30, 2025, Devon had approximately $3.0 billion of available borrowing capacity under its Senior Credit Facility[233] - The company has a credit rating of BBB from Standard and Poor's, BBB+ from Fitch, and Baa2 from Moody's, all with a stable outlook[234] - Capital expenditures for the first nine months of 2025 totaled $2.76 billion, representing approximately 53% of operating cash flow[208] - Capital expenditures for the remainder of 2025 are expected to be approximately $0.9 billion to $1.0 billion[238] - The capital expenditures budget indicates a focus on maintaining operational efficiency and growth[238] Business Optimization - The business optimization plan is expected to improve annual pre-tax cash flow by $1.0 billion, with $600 million anticipated to be completed by the end of 2025[166] - Devon's business optimization plan is expected to improve annual pre-tax cash flow by $1.0 billion, with $600 million anticipated to be achieved by the end of 2025[223] Market Conditions - Realized price for oil (unhedged) increased to $63.21 per Bbl, a 2% increase from Q2 2025[173] - Field-level cash margin increased to $24.41 per Boe, up from $23.68 in Q2 2025[179] - Cash settlements from hedges totaled $107 million in the first nine months of 2025, a decrease of 23% compared to $139 million in 2024[190] - A 10% change in the forward curves of commodity derivatives would have impacted net positions by approximately $200 million[254] - The company’s Field-Level Cash Margin for the nine months ended September 30, 2025, was $5.94 billion[252]

Customer Base and Operations - The company serves over 1.35 million customers across 800+ communities in eight states, focusing on operational excellence and growth[126] Financial Performance - For the three months ended September 30, 2025, Electric Utilities' operating income decreased by $2.7 million to $62.4 million, while Gas Utilities' operating income increased by $9.9 million to $20.8 million[141] - For the nine months ended September 30, 2025, Electric Utilities' operating income decreased by $10.3 million to $165.7 million, while Gas Utilities' operating income increased by $43.1 million to $207.7 million[141] - The company’s net income for the nine months ended September 30, 2025, was $191.1 million, an increase of $8.5 million compared to the same period in 2024[141] - Electric Utilities revenue for the three months ended September 30, 2025, was $249.7 million, an increase of 7.4% compared to $232.5 million in the same period of 2024[148] - Total revenue for the nine months ended September 30, 2025, was $706.3 million, up from $659.8 million in 2024, reflecting a 7.0% increase[154] - Gas Utilities revenue for the three months ended September 30, 2025, was $184.4 million, up 6.2% from $173.6 million in 2024[162] - The total revenue for Gas Utilities for the nine months ended September 30, 2025, was $979.9 million, an increase of 10.8% from $884.2 million in 2024[162] Margins and Expenses - Electric Utility margin (non-GAAP) for the three months ended September 30, 2025, increased by $2.3 million to $179.9 million from $177.6 million in 2024[149] - The Electric Utility margin for the nine months ended September 30, 2025, increased by $10.0 million to $514.1 million compared to $504.1 million in 2024[149] - Operations and maintenance expenses rose by $4.7 million to $69.8 million for the three months ended September 30, 2025, compared to $65.1 million in 2024[148] - Operations and maintenance expenses for Gas Utilities decreased by $4.5 million in Q3 2025 compared to Q3 2024, primarily due to lower employee-related expenses[163] Energy Generation and Demand - Wyoming Electric set a new all-time peak load of 379 MW on June 20, 2025, surpassing the previous peak of 314 MW set in January 2024[140] - Coal generation decreased to 556.8 GWh for the three months ended September 30, 2025, from 645.7 GWh in 2024, primarily due to unplanned outages[155] - Total purchased energy increased to 734.8 GWh for the three months ended September 30, 2025, compared to 516.1 GWh in 2024, driven by increased demand[156] - Total generated electricity for the nine months ended September 30, 2025, was 3,856.7 GWh, a decrease of 2.9% from 3,971.3 GWh in 2024[157] - Total purchased electricity for the nine months ended September 30, 2025, was 2,225.3 GWh, a 30.8% increase from 1,701.3 GWh in 2024[157] Debt and Capital Expenditures - Interest expense increased by $17.7 million for the nine months ended September 30, 2025, primarily due to higher interest rates on long-term debt[142] - Capital expenditures for the nine months ended September 30, 2025, totaled $(550.2) million, an increase of $19.7 million compared to $(530.5) million in 2024, primarily due to the Ready Wyoming and Lange II projects[180] - The company completed a public debt offering of $450 million on October 2, 2025, with net proceeds intended to repay $300 million of senior unsecured notes due January 2026[175] Equity and Liquidity - Total stockholders' equity as of September 30, 2025, was $3,768.0 million, compared to $3,501.5 million as of December 31, 2024, indicating a growth in equity[174] - Available liquidity as of September 30, 2025, was $642.0 million, slightly up from $628.8 million as of December 31, 2024[174] - The company's debt to capitalization ratio improved to 53.7% as of September 30, 2025, down from 55.6% at the end of 2024[174] Tax and Other Expenses - Income tax expense increased by $2.9 million primarily due to higher pre-tax income[147] - The effective tax rate for the three months ended September 30, 2025, was 13.5%, up from 10.0% in 2024, primarily due to non-deductibility of certain merger-related expenses[177] Merger Activity - The company is in the process of a merger with NorthWestern, which was agreed upon on August 18, 2025[130] - Operating loss for the three months ended September 30, 2025, increased to $(4.5) million, compared to $(0.2) million for the same period in 2024, primarily due to $8.4 million of NorthWestern merger-related costs[171] Sustainability and Corporate Responsibility - The company published its 2024 Corporate Sustainability Report, highlighting progress on major projects and climate goals[140]

Financial Performance - Total revenues for Q3 2025 decreased by $1.8 billion to $12.023 billion compared to Q3 2024, primarily due to lower marketing revenues[214]. - Revenues from the marketing of NGLs and petrochemicals decreased by a combined $2.2 billion, with lower average sales prices accounting for a $1.6 billion decrease[215]. - Operating income for the nine months ended September 30, 2025 was $5.242 billion, a decrease from $5.367 billion in the same period of 2024[212]. - Cost of sales for Q3 2025 decreased by $1.8 billion to $8.590 billion compared to Q3 2024, driven by lower average purchase prices for NGLs and petrochemicals[221]. - Total revenues for the nine months ended September 30, 2025 decreased by $3.2 billion to $38.803 billion compared to the same period in 2024, primarily due to lower marketing revenues[217]. - Revenues from the marketing of NGLs and crude oil decreased by a combined $3.3 billion for the nine months ended September 30, 2025, mainly due to lower average sales prices[218]. - Operating income decreased by $94 million and $125 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[227]. - Total gross operating margin for the three months ended September 30, 2025, was $2,385 million, a decrease from $2,454 million in the same period of 2024[234]. Capital Investments and Financing - The company expects total organic capital investments for 2025 to approximate $5.0 billion, including $4.5 billion for organic growth and $525 million for sustaining capital expenditures[338]. - Total capital investments for the nine months ended September 30, 2025 reached $4,319 million, an increase of 24% compared to $3,485 million in 2024[341]. - Growth capital projects accounted for $3,368 million of total capital investments in the first nine months of 2025, up from $2,950 million in 2024[341]. - The company issued $2.0 billion in senior notes and had a net cash inflow of $1.7 billion related to debt transactions for the nine months ended September 30, 2025[331]. - Interest charged on debt principal outstanding increased by $27 million quarter-to-quarter and $81 million period-to-period, primarily due to the issuance of $2.5 billion and $2.0 billion of fixed-rate senior notes[230]. - Guaranteed Debt as of September 30, 2025, totaled $34.2 billion, including $30.8 billion in senior notes and $2.3 billion in junior subordinated notes[349]. Market and Pricing Trends - Average natural gas prices for Q3 2025 were $3.07 per MMBtu, compared to $2.15 per MMBtu in Q3 2024, reflecting a year-over-year increase of 42.8%[201]. - Average NGL prices for propane in Q3 2025 were $0.69 per gallon, down from $0.73 per gallon in Q3 2024, indicating a decrease of 5.5%[201]. - The average indicative gas processing gross spread for Q3 2025 was $0.30 per gallon, consistent with Q3 2024[201]. - The average WTI crude oil price for Q3 2025 was $64.93 per barrel, down from $75.10 per barrel in Q3 2024[206]. - The weighted-average indicative market price for NGLs was $0.56 per gallon in Q3 2025, a slight decrease from $0.57 per gallon in Q3 2024[204]. Operational Highlights - The first phase of the Neches River Ethane/Propane Export Facility was completed, featuring a loading dock and an ethane refrigeration train with a capacity of 120 MBPD[197]. - The first natural gas processing train at Mentone West and the eighth train in the Midland Basin were placed into service, each capable of processing over 300 MMcf/d and extracting more than 40 MBPD of NGLs[198]. - Enterprise plans to expand natural gas processing capabilities in the Midland Basin with a new processing train expected to process approximately 300 MMcf/d and extract up to 40 MBPD of NGLs, starting in Q4 2026[196]. - Gross operating margin from natural gas processing and related NGL marketing activities decreased by $17 million for the three months ended September 30, 2025, compared to the same period in 2024[241]. Cash Flow and Distributions - Net cash flow from operating activities for the nine months ended September 30, 2025, was $6,113 million, an increase of $356 million compared to the same period in 2024[321][323]. - Net cash flow provided by operating activities for Q3 2025 was $1,738 million, a decrease of 16.1% from $2,072 million in Q3 2024[336]. - Cash distributions paid to common unitholders increased by $125 million period-over-period, primarily due to higher quarterly distribution rates[331]. - The company declared a quarterly cash distribution of $0.545 per common unit, totaling $1.19 billion, to be paid on November 14, 2025[311]. - Distributable Cash Flow (DCF) for the nine months ended September 30, 2025, was $5,777 million, compared to $5,684 million for the same period in 2024[332]. Cost Management - Total operating costs and expenses for the nine months ended September 30, 2025 decreased by $3.1 billion compared to the same period in 2024[220]. - General and administrative costs remained flat for the three months ended September 30, 2025, while they increased by $5 million for the nine months ended September 30, 2025, primarily due to higher employee compensation costs[225]. - Inflation rates in the U.S. have remained elevated in 2025, impacting operating results, although the company has implemented measures to mitigate these effects[210].

Financial Performance - For the three-month period ended September 30, 2025, the Core Organic Growth Rate was 2.6%[139] - Total revenue for the three months ended September 30, 2025, was $50,526,000, compared to $66,692,000 for the same period in 2024, representing a decline of approximately 24.2%[143] - Core organic revenue for the three months ended September 30, 2025, was $45,176,000, up from $44,029,000 in 2024, indicating a year-over-year increase of approximately 2.6%[143] - The net loss for the three months ended September 30, 2025, was $1,122,000, compared to a net loss of $1,733,000 for the same period in 2024[146] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,032,000, compared to $14,000,000 for the same period in 2024, reflecting an increase of approximately 14.5%[146] - Total revenue for the three months ended September 30, 2025, was $50.5 million, a decrease of 24% from $66.7 million in the same period of 2024, primarily due to declines in divested product lines[153] - Subscription and support revenue decreased by 25% to $47.7 million for the three months ended September 30, 2025, compared to $63.8 million in 2024[152] - For the nine months ended September 30, 2025, total revenue was $167.6 million, down 19% from $206.8 million in 2024, mainly due to declines in divested product lines[154] Cost and Expenses - Total cost of revenue for the three months ended September 30, 2025, was $11.7 million, a decrease of 41% from $19.7 million in 2024[155] - Gross profit for the three months ended September 30, 2025, was $38.8 million, representing a gross margin of 77%, compared to 70% in the same period of 2024[155] - Operating expenses for the three months ended September 30, 2025, totaled $33.5 million, representing 66% of total revenue, compared to 75% in 2024[155] - Sales and marketing expense decreased to $9.7 million in Q3 2025 from $16.3 million in Q3 2024, a decline of 41%[161] - For the nine months ended September 30, 2025, sales and marketing expense was $34.2 million, down 32% from $50.1 million in the same period in 2024[162] - Research and development expense was $7.9 million in Q3 2025, a decrease of 31.1% from $11.4 million in Q3 2024[164] - For the nine months ended September 30, 2025, research and development expense totaled $29.2 million, down 19.1% from $36.1 million in the same period in 2024[165] - General and administrative expense was $8.8 million in Q3 2025, a decrease of 20% from $11.1 million in Q3 2024[167] - For the nine months ended September 30, 2025, general and administrative expense was $30.6 million, down 20% from $38.2 million in the same period in 2024[168] - Depreciation and amortization expense was $6.4 million in Q3 2025, a decrease of 45% from $11.5 million in Q3 2024[171] - For the nine months ended September 30, 2025, depreciation and amortization expense was $21.2 million, down 38% from $34.3 million in the same period in 2024[172] - Divestiture-related expenses were $0.8 million in Q3 2025, compared to nil in Q3 2024, marking a 100% increase[174] Losses and Impairments - Net loss attributable to common shareholders for the three months ended September 30, 2025, was $2.6 million, or $0.09 per share, compared to a net loss of $3.1 million, or $0.12 per share, in 2024[152] - The company reported a loss before provision for income taxes of $1.4 million for the three months ended September 30, 2025, compared to a loss of $1.2 million in 2024[152] - Loss on divestitures of businesses was $0.5 million for the three months ended September 30, 2025, compared to nil in the same period of 2024, as the company finalized divestitures of certain product lines[180] - Loss on debt extinguishment was $2.3 million for the three months ended September 30, 2025, compared to nil in the same period of 2024, due to the replacement of the previous credit facility[181] - For the nine months ended September 30, 2025, loss on divestitures of businesses totaled $24.4 million, with no such losses reported in the same period of 2024[184] - Impairment of goodwill and other intangibles recorded was $2.5 million in the nine months ended September 30, 2025, compared to $87.2 million in the same period in 2024, a decrease of 97%[176] Cash Flow and Financing - Cash provided by operating activities was $18.5 million for the nine months ended September 30, 2025, an increase of approximately $3.6 million from $14.9 million in the same period of 2024[197] - Cash provided by investing activities was $8.0 million for the nine months ended September 30, 2025, compared to cash used of $0.6 million in the same period of 2024, reflecting an increase of $8.5 million[200] - Cash used in financing activities was $61.6 million for the nine months ended September 30, 2025, a decrease of $131.2 million from $192.8 million in the same period of 2024[202] - As of September 30, 2025, the company had $23.4 million in cash and cash equivalents, down from $57.1 million as of December 31, 2024, primarily due to debt repayments[191] - Cash paid for lender fees and debt issuance costs was $6.8 million for the nine months ended September 30, 2025, compared to $0.1 million for the same period in 2024[203] - As of September 30, 2025, the outstanding balance under the Credit Agreement was $240.0 million, maturing in July 2031[212] - A hypothetical change of 100 basis points in variable rate debt could have resulted in a $0.6 million increase in total interest expense for the nine months ended September 30, 2025[213] - The company has an interest rate cap on $120 million of outstanding debt, effectively capping the secured overnight financing rate at 4.5%[212] Market Risks and Economic Factors - The financial impact of the One Big Beautiful Bill Act (OBBBA) is being monitored for potential future effects through 2027[133] - The company plans to continue monitoring macroeconomic factors, including inflation and supply chain constraints, that may impact its operations[131] - The company is exposed to market risks including interest rate, foreign exchange, and inflation risks due to its operations both domestically and internationally[210] - The effect of a hypothetical 10% change in foreign currency exchange rates could have resulted in a change in revenue of $3.6 million for the nine months ended September 30, 2025[214] - The company has not engaged in any currency hedging strategies to manage foreign exchange rate exposure[214] Customer and Product Strategy - The company reported a total of 1,100 enterprise customers relying on its AI-powered knowledge and content management software[135] - The company is focused on expanding its go-to-market operations and increasing sales of its products[131] - The company is committed to integrating AI functionality into its products to enhance customer experiences and drive measurable ROI[135] Accounting Policies - The company evaluates its estimates, judgments, and assumptions on an ongoing basis, which may change as new events occur[207] - There were no material changes in critical accounting policies and estimates compared to the Annual Report for the year ended December 31, 2024[206]

Financial Performance - Total revenue for Q3 2025 was $743.0 million, an increase of $31.7 million or 4.5% compared to Q3 2024 revenue of $711.3 million[169]. - Operating income for Q3 2025 was $60.9 million, up $19.1 million or 45.8% from $41.8 million in Q3 2024, driven by a $34.3 million increase in net revenue[172]. - Net revenue for Q3 2025 was $614.5 million, reflecting a 5.9% increase from $580.2 million in Q3 2024[170]. - Revenue for the three months ended September 30, 2025 was $297.2 million, an increase of $29.5 million or 11.0% compared to $267.7 million for the same period in 2024[188]. - Operating Income for the three months ended September 30, 2025 was $37.5 million, representing an increase of $16.5 million or 78.6% from $21.0 million in the same period of 2024[190]. - Revenue for the nine months ended September 30, 2025 was $2,101.6 million, an increase of $49.0 million or 2.4% compared to $2,052.5 million for the same period in 2024[218]. - Operating income for the nine months ended September 30, 2025 was $102.4 million, an increase of $12.8 million or 14.3% compared to $89.5 million for the same period in 2024[217]. - The Company reported a net income attributable to common shareholders of $16.4 million for the nine months ended September 30, 2025, compared to a net loss of $1.0 million in 2024[231]. Segment Performance - The Marketing Services segment saw a revenue increase of $20.7 million, or 9.2%, from $225.4 million in Q3 2024 to $246.1 million in Q3 2025[170]. - Digital Transformation revenue increased by $10.1 million, or 11.9%, from $85.3 million in Q3 2024 to $95.4 million in Q3 2025[170]. - Communications segment revenue decreased by $16.1 million, or 14.3%, from $112.6 million in Q3 2024 to $96.5 million in Q3 2025[170]. - Revenue in the Media & Commerce segment for the three months ended September 30, 2025, was $174.7 million, an increase of $15.1 million or 9.5% compared to the same period in 2024[198]. - Revenue for the Communications segment was $420.2 million, down $53.7 million or 11.3% from $474.0 million in 2024[254]. Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $114.6 million, a 3.1% increase from $111.2 million in Q3 2024[168]. - Adjusted EBITDA for the three months ended September 30, 2025 was $114.6 million, an increase of $3.4 million or 3.1% compared to $111.2 million for the same period in 2024[186]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $288.0 million, a slight increase of $0.4 million compared to $287.6 million in 2024[234]. Costs and Expenses - Cost of services increased by $13.9 million, with staff costs rising due to the inclusion of costs from acquired entities[173]. - Office and general expenses decreased by $10.0 million, primarily due to a reduction in deferred acquisition consideration expense[174]. - Staff costs for the three months ended September 30, 2025 increased by $3.2 million, primarily due to higher insurance claims[216]. - Cost of services increased by $62.6 million, primarily due to expenses from acquired entities, despite a decline in billable costs of $60.8 million[222]. Cash Flow and Debt - Net cash provided by operating activities was $30.7 million, an increase of $99.9 million or 144.4% compared to the same period in the prior year[269]. - The Company had cash and cash equivalents of $132.2 million as of September 30, 2025, compared to $131.3 million as of December 31, 2024[268]. - As of September 30, 2025, the Company's total debt was $1,526.3 million, an increase from $1,353.6 million as of December 31, 2024, reflecting a growth of approximately 12.8%[280]. - The Company maintained a Total Leverage Ratio of 3.45 as of September 30, 2025, which is below the maximum permitted ratio of 4.25 under the Credit Agreement[284]. Strategic Focus - Stagwell's strategy focuses on building, growing, and acquiring market-leading businesses to deliver modern marketing services[148]. - The Company emphasizes the importance of retaining and attracting key employees and adapting to clients' changing needs in marketing communication[151]. - The Company monitors key financial indicators including revenue, operating expenses, net income, and non-GAAP measures like Adjusted EBITDA and Adjusted Diluted EPS[149]. Market Risks - The Company is exposed to market risks related to interest rates, foreign currencies, and impairment risk, which could affect its financial performance[293]. - The Company has contractual commitments with media providers and other third parties that may exceed revenue from services, which could expose it to risks in case of client defaults[286].

Financial Performance - Third quarter net sales increased by $131 million, or 6.0%, to $2.31 billion in 2025 compared to $2.18 billion in 2024[128] - Net income for the third quarter of 2025 was $227 million, or $2.51 per diluted share, down from $238 million, or $2.64 per diluted share in 2024[116] - Net sales increased by $389 million, or 6.2%, to $6,625.7 million for the nine months ended September 30, 2025, compared to $6,237.2 million in the same period in 2024[142] - For the nine months ended September 30, 2025, net income was $672.3 million, compared to $584.0 million for the same period in 2024, representing a 15.1% increase[177] - EBITDA for the nine months ended September 30, 2025, was $1,369.7 million, up from $1,188.7 million in 2024, reflecting a 15.2% growth[179] Segment Performance - Packaging segment operating income was $328 million in Q3 2025, compared to $321 million in Q3 2024, with EBITDA excluding special items rising to $492 million from $446 million[116] - Paper segment operating income decreased to $36 million in Q3 2025 from $39 million in Q3 2024, with EBITDA excluding special items falling to $40 million from $43 million[118] - Packaging segment operating income rose by $148 million to $952 million during the first nine months of 2025, driven by higher containerboard and corrugated products prices and mix[149] - Paper segment operating income increased by $2 million to $97 million compared to the same period in 2024, primarily due to higher prices and mix[150] - Segment operating income for the Packaging segment was $952.0 million for the nine months ended September 30, 2025, compared to $804.3 million in 2024, indicating an 18.4% increase[180] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,111 million, an increase of $245 million from $866 million in the same period of 2024[159] - The Company used $2,287 million for investing activities during the nine months ended September 30, 2025, compared to $75 million in the same period of 2024, with $1,804 million allocated to the Greif Acquisition[163] - Net cash provided by financing activities was $1,126 million for the nine months ended September 30, 2025, compared to a net cash outflow of $763 million in the same period of 2024[166] - The net cash decrease in cash and cash equivalents for the nine months ended September 30, 2025, was $51 million, compared to an increase of $28.6 million in the same period of 2024[157] Debt and Financing - The Company entered into two credit agreements totaling $1.6 billion, including a $500 million three-year unsecured term loan and a $600 million revolving credit facility[155] - The net proceeds from financing activities related to the Greif Acquisition amounted to $1,494 million[167] - Approximately 75% of the company's debt has fixed interest rates, and a 1% increase in variable-rate debt would increase interest expense by approximately $10 million annually[182] Future Outlook - The company expects fourth quarter earnings to be lower than the third quarter of 2025 due to maintenance outages and seasonally lower volumes[126] - The Paper segment is projected to experience lower production and sales volumes in Q4 2025, with flat pricing compared to the seasonally stronger third quarter[124] - The company expects continued growth in earnings and liquidity, although actual results may differ due to various risks and uncertainties[190][191] Other Financial Metrics - Income from operations increased by $139 million, or 17.4%, during the nine months ended September 30, 2025, compared to the same period in 2024[148] - Gross profit increased by $129 million during the nine months ended September 30, 2025, driven by higher prices and mix in the Packaging and Paper segments[145] - Interest expense, net increased by $16 million during the nine months ended September 30, 2025, primarily due to financing for the Greif Acquisition[152] - The effective tax rate for the nine months ended September 30, 2025, was 24.7%, compared to 24.4% in the same period in 2024[153] - Other income (expense), net for the nine months ended September 30, 2025, totaled $(34.7) million, an improvement from $(51.0) million in 2024[147] Acquisition Details - The Greif Acquisition added approximately $12 million in depreciation and amortization and $8 million in interest expense in the first month of ownership[116] - The Company incurred $25 million in acquisition-related costs during the nine months ended September 30, 2025, related to the Greif Acquisition[176] - The company incurred acquisition and integration-related costs of $26.6 million for the nine months ended September 30, 2025, related to the Greif Acquisition[178] Environmental and Risk Management - The company has not reported any material changes in environmental matters since its 2024 Annual Report[184] - The company is exposed to commodity price changes and interest rate fluctuations, which it manages through certain physical commodity transactions[181] - The company has no off-balance-sheet arrangements as of September 30, 2025[183]

Financial Performance - Net income attributable to Chevron Corporation for Q3 2025 was $3.5 billion ($1.82 per share), down from $4.5 billion ($2.48 per share) in Q3 2024, representing a 22% decrease [108]. - For the first nine months of 2025, net income was $9.5 billion, down 34% from $14.4 billion in the same period of 2024 [108]. - Sales and other operating revenues for Q3 2025 were $48,169 million, a slight decrease from $48,926 million in Q3 2024, primarily due to lower crude oil and refined product prices [167]. - Revenue from sales and other operating revenues was $70.569 billion for the nine months ended September 30, 2025 [195]. Upstream and Downstream Earnings - Upstream earnings in Q3 2025 were $3.3 billion, a decline of 28% compared to $4.6 billion in Q3 2024, primarily due to lower liquids realizations and lower affiliate earnings [109]. - Downstream earnings increased to $1.1 billion in Q3 2025 from $595 million in Q3 2024, driven by higher margins on refined product sales and lower operating expenses [110]. - U.S. upstream earnings decreased by $1.6 billion in the first nine months of 2025, primarily due to lower liquids realizations of $1.7 billion and higher operating expenses of $730 million [151]. - International upstream earnings fell by $2.9 billion in the first nine months of 2025, mainly due to lower affiliate earnings of $1.6 billion and asset sales of $470 million [156]. - International downstream earnings increased by $50 million to $499 million in Q3 2025, primarily due to favorable foreign currency effects of $97 million, despite lower margins on refined product sales of $80 million [163]. Production and Sales - Chevron's worldwide net oil-equivalent production averaged 3.61 million barrels per day in the first nine months of 2025, an increase of 8% year-over-year [140]. - Net crude oil and natural gas liquids production in the U.S. increased to 1,496 MBD in Q3 2025, up 29.5% from 1,156 MBD in Q3 2024 [186]. - Total net oil-equivalent production reached 4,086 MBOED in Q3 2025, a 21.4% increase compared to 3,364 MBOED in Q3 2024 [186]. - Refined product sales increased by 10,000 barrels per day, or 1%, compared to the same period last year [164]. Costs and Expenses - Operating, selling, general and administrative expenses increased to $9,058 million in Q3 2025 from $7,886 million in Q3 2024, primarily due to the addition of Hess and higher professional service fees [171]. - Interest and debt expenses rose to $370 million in Q3 2025 from $164 million in Q3 2024, mainly due to a higher debt balance including the debt from the Hess acquisition [176]. - The effective tax rate may fluctuate significantly due to earnings volatility and jurisdictional tax rate differences, impacting future results [120]. Capital Expenditures and Investments - Capital expenditures totaled $12.1 billion in the first nine months of 2025, consistent with the previous year [187]. - Total capex in the United States for the nine months ended September 30, 2025, was $7.94 billion, down from $8.52 billion in 2024 [200]. - International capex for the same period increased to $4.15 billion in 2025 from $3.59 billion in 2024 [200]. - Chevron plans to achieve $2-3 billion in structural cost reductions by the end of 2026 through portfolio optimization and technology enhancements [128]. Shareholder Returns - The company paid dividends of $9.3 billion to common stockholders during the first nine months of 2025 [188]. - Chevron repurchased 231.1 million shares for $35.5 billion under the $75 billion share repurchase program initiated in 2023 [195]. - The company expects share repurchases in Q4 2025 to be between $2.5 billion and $3.0 billion [196]. Market and Economic Conditions - The average Brent crude oil price was $71 per barrel for the first nine months of 2025, down from $83 per barrel in the same period of 2024 [135]. - The U.S. Henry Hub natural gas price averaged $3.49 per thousand cubic feet (MCF) in the first nine months of 2025, compared to $2.20 per MCF in the same period of 2024 [137]. - The company continues to monitor market risks, with no material changes reported for the nine months ended September 30, 2025 [202]. Strategic Initiatives - Chevron continues to evaluate opportunities for acquisitions and dispositions to enhance its asset base and financial performance [126]. - Chevron has spent approximately $8.2 billion on lower carbon initiatives from September 2021 to September 30, 2025, but will no longer provide forward-looking guidance on planned lower carbon capital spend [118]. - The company is actively managing supply chain costs and has implemented inflation mitigation strategies to address rising expenses [122][123]. - Chevron secured a second long-term agreement to sell liquefied natural gas (LNG) to ENN Global Trading Pte. Ltd. in China, enhancing its LNG value chain [147].

Acquisition and Financial Transactions - The acquisition of Sprint Communications, now called Cogent Fiber, was completed on May 1, 2023, with a total payment of $61.1 million after adjustments[146][148]. - Total qualifying severance expenses related to the acquisition amounted to $28.6 million, with $12.3 million recorded in the nine months ended September 30, 2024[156]. - Acquisition-related costs incurred since the acquisition date totaled $13.6 million, with no additional costs reported for the nine months ended September 30, 2025[158]. - An additional Working Capital Adjustment of $5 million was paid to the Seller in April 2024 following the acquisition[148]. - The Transition Services Agreement with the Seller is intended to last up to two years, with the possibility of a one-year extension, ensuring a smooth transition of services[153]. - Acquisition-related costs totaled $42.1 million, including $28.6 million of reimbursed severance costs, with no acquisition-related costs recorded for the nine months ended September 30, 2025[239]. - The total gain on bargain purchase from the acquisition was $1.4 billion, with an increase of $22.2 million in the gain for the nine months ended September 30, 2024[243]. Revenue and Customer Segments - The company recorded revenue of $4.1 million and $2.1 million from colocation and connectivity services under the Commercial Agreement with T-Mobile USA for the nine months ended September 30, 2024[157]. - Revenue from corporate customers decreased by 9.5% from $116,244,000 in Q3 2024 to $105,201,000 in Q3 2025[193]. - Revenue from net-centric customers increased by 9.2% from $91,873,000 in Q3 2024 to $100,288,000 in Q3 2025[193]. - Wavelength revenue increased by 92.5% from $5,287,000 in Q3 2024 to $10,179,000 in Q3 2025[193]. - Service revenue decreased by 6.2% from $783.8 million for the nine months ended September 30, 2024, to $735.2 million for the nine months ended September 30, 2025[217]. - Revenue from corporate customers decreased by 9.9% to $324.9 million, while revenue from net-centric customers increased by 5.5% to $290.2 million for the nine months ended September 30, 2025[223]. - Wavelength revenue grew significantly by 115.5% from $12.2 million for the nine months ended September 30, 2024, to $26.4 million for the nine months ended September 30, 2025[235]. Operational Efficiency and Network Expansion - The company aims to become a low-cost operator in the wireline telecom industry, benefiting from price deflation and operational efficiencies[159]. - The company operates its network solely using Ethernet protocol, which reduces operational costs and complexity compared to competitors using multiple protocols[159]. - The on-net service structure allows the company to maintain greater control over service quality and pricing, enabling faster service provisioning[160]. - The company has acquired a large portfolio of dark fiber leases from over 375 vendors, providing long-term access to dark fiber at attractive rates[161]. - The acquisition of the Sprint Network allows the company to capitalize on owning a nationwide domestic fiber network, reducing reliance on leased dark fiber[161]. - As of September 30, 2025, the company offers optical wavelength services in 996 wave-enabled data centers across the U.S., Mexico, and Canada, enhancing service offerings[161]. - The company had a total of 3,537 on-net buildings connected to its network as of September 30, 2025, up from 3,424 in 2024, indicating ongoing network expansion[214]. - The company anticipates adding a similar number of on-net buildings to its network for the next several years, continuing its disciplined expansion strategy[214]. Financial Performance and Expenses - Service revenue decreased by 5.9% from $257,202,000 in Q3 2024 to $241,949,000 in Q3 2025[187]. - Network operations expenses decreased by 18.5% from $161,552,000 in Q3 2024 to $131,677,000 in Q3 2025[187]. - SG&A expenses increased by 4.1% from $67,664,000 in Q3 2024 to $70,423,000 in Q3 2025[187]. - Depreciation and amortization expenses decreased by 29.6% from $85,815,000 in Q3 2024 to $60,429,000 in Q3 2025[187]. - The income tax benefit for the three months ended September 30, 2025, was $11.1 million, down from $16.9 million for the same period in 2024[213]. - The company reported a net loss of $(214.2) million for the nine months ended September 30, 2025, with service revenue of $39.9 million[287]. - The company experienced a net cash decrease of $(1.6) million in cash and cash equivalents and restricted cash for the nine months ended September 30, 2025, compared to an increase of $202.3 million in 2024[269]. - Total indebtedness at September 30, 2025, was $2.3 billion, with finance lease obligations for dark fiber under long-term IRU agreements amounting to $601.8 million[284]. Shareholder Returns and Capital Management - During the nine months ended September 30, 2025, the company paid $147.8 million in quarterly dividends, an increase from $141.0 million in 2024[275]. - The company purchased 341,818 shares of common stock for $16.7 million under its buyback program, with an average price of $48.81 per share[288]. - The company issued $174.4 million in secured IPv4 address revenue notes in April 2025, with net proceeds of $170.5 million, of which $72.6 million was restricted cash[277]. - The company expects to maintain timely servicing of its debt obligations without requiring concessions, with access to additional capital from various sources[266]. - The company believes that cash on hand and cash generated from operating activities will be adequate to meet working capital and other cash requirements for the next 12 months[291]. - Future acquisitions or significant unplanned costs may require raising additional funds through debt or equity issuance, which could lead to dilution for existing stockholders[292]. - The company may need to refinance its indebtedness and cannot assure that refinancing will be available on commercially reasonable terms[293]. Market and Risk Management - There are no relationships with unconsolidated entities or financial partnerships that could expose the company to financing, liquidity, market, or credit risk[294]. - As of September 30, 2025, there have been no material changes to critical accounting policies and significant estimates from the previous annual report[295]. - The company has not experienced material changes in exposures to market risk as of September 30, 2025[297].

Financial Performance - For the three months ended September 30, 2025, the company reported a net income of $497,832, primarily from interest income of $629,947, offset by general and administrative expenses of $132,115 [96]. - For the nine months ended September 30, 2025, the company had a net income of $1,110,246, consisting of interest income of $1,648,194, with general and administrative expenses totaling $537,948 [97]. - The company has no revenue and has incurred losses since inception, relying on the sale of securities and loans from the sponsor to fund operations [93]. IPO and Financing - The company completed its IPO on January 24, 2025, raising total gross proceeds of $60,000,000 from the sale of 6,000,000 units at $10.00 per unit [89]. - The company intends to use substantially all net proceeds from the IPO to acquire a target business and cover related expenses [100]. - As of September 30, 2025, the company had cash of $638,311 and working capital of $587,802, with cash provided by financing activities amounting to $61,066,688 [99]. Business Operations and Obligations - The company has until January 22, 2026, to complete its initial business combination, or it will face automatic winding up and liquidation [104]. - The company has incurred and expects to continue incurring significant costs to remain publicly traded and pursue a business combination [103]. - As of September 30, 2025, the company has no long-term debt or capital lease obligations [106]. - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025 [105].

Financial Performance - For the three months ended September 30, 2025, the company reported a net income of $497,832, driven by interest income of $629,947 from the trust account, offset by general and administrative expenses of $132,115 [96]. - For the nine months ended September 30, 2025, the company achieved a net income of $1,110,246, with interest income of $1,648,194 and general and administrative expenses of $537,948 [97]. IPO and Funding - The company completed its IPO on January 24, 2025, raising total gross proceeds of $60,000,000 from the sale of 6,000,000 units at $10.00 per unit [89]. - The company intends to use substantially all net proceeds from the IPO to acquire a target business and cover related expenses [100]. - As of September 30, 2025, the company had cash of $638,311 and working capital of $587,802, with cash provided by financing activities totaling $61,066,688 [99]. Business Operations and Future Plans - The company has no revenue and has incurred losses since inception, relying on the sale of securities and loans from the sponsor to fund operations [93]. - The company has until January 22, 2026, to complete its initial business combination, or it will face automatic winding up and liquidation [104]. - The company has incurred and expects to continue incurring significant costs to remain publicly traded and pursue a business combination [103]. Debt and Financing - As of September 30, 2025, the company has no long-term debt or capital lease obligations [106]. - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025 [105].