Chevron(CVX) - 2025 Q1 - Quarterly Results

First Quarter 2025 Performance Summary Financial Results Overview 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] - The company returned $6.9 billion in cash to shareholders, comprising $3.9 billion in share repurchases and $3.0 billion in dividends[6][11] - 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] Key Metrics and Business Highlights 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] - Production started from the Ballymore field in the Gulf of America in April 2025[11] - Completed the sale of a majority interest in East Texas gas assets[11] - Announced a simplified organizational structure to reduce structural costs by $2-3 billion by the end of 2026[11] Segment Performance 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 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] International Upstream 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] 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 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] International Downstream 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] All Other 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] Detailed Financial Statements and Reconciliations Consolidated Statement of Income 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 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 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 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]