Chevron(US:CVX)2025-05-08 14:49Financial Performance - Net income attributable to Chevron Corporation for Q1 2025 was $3.5 billion ($2.00 per share — diluted), down from $5.5 billion ($2.97 per share — diluted) in Q1 2024, representing a 36.4% decrease [99]. - Upstream earnings in Q1 2025 were $3.8 billion, a decline of 27.7% from $5.2 billion in Q1 2024, primarily due to lower liftings and unfavorable foreign exchange effects [100]. - Downstream earnings in Q1 2025 were $325 million, down 58.6% from $783 million in Q1 2024, mainly due to lower margins on refined product sales [100]. - Sales and other operating revenues for Q1 2025 were $46.101 billion, a decrease from $46.580 billion in Q1 2024, attributed to lower refined product and crude oil prices [154]. - Income from equity affiliates fell to $820 million from $1.441 billion, primarily due to lower upstream-related earnings from TCO in Kazakhstan [155]. - Cash provided by operating activities in Q1 2025 was $5.2 billion, down from $6.8 billion in the year-ago period [171]. - Free cash flow for Q1 2025 was $1,262 million, down from $2,739 million in Q1 2024 [182]. - Net income for Q1 2025 was $6,435 million, while the net income for the year ended December 31, 2024 was $73,119 million [179]. Cost Management and Asset Sales - Chevron plans to achieve $2-3 billion in structural cost reductions by the end of 2026 through portfolio optimization and technology enhancements [119]. - The company is targeting $10-15 billion in asset sales over the five-year period ending in 2028 to augment financial performance [115]. Shareholder Returns - The company repurchased 25.0 million shares for $3.9 billion in Q1 2025, part of a $75 billion share repurchase program initiated in April 2023 [179]. - The company expects share repurchases in Q2 2025 to be between $2.5 billion and $3.0 billion [179]. Production and Operations - The company's worldwide net oil-equivalent production averaged 3.35 million barrels per day, relatively flat year-over-year, with a 4% increase in U.S. production [135][144]. - Chevron's U.S. upstream earnings decreased by $217 million to $1.858 billion, primarily due to higher operating expenses and lower liquids realizations [144]. - International upstream earnings fell by $1.3 billion to $1.9 billion, driven by lower liftings and unfavorable foreign currency effects [146]. - U.S. downstream earnings dropped by $350 million to $103 million, mainly due to lower margins on refined product sales [148]. - International downstream earnings decreased by $108 million to $222 million, impacted by lower margins and unfavorable foreign currency effects [150]. Tax and Expenses - The effective tax rate for the company can change significantly during periods of earnings volatility, influenced by the mix of earnings across different tax jurisdictions [110]. - Income tax expense decreased by $300 million to $2.07 billion in Q1 2025, attributed to a decrease in total income before tax of $2.3 billion [164]. - U.S. income before tax decreased from $2.6 billion in Q1 2024 to $1.9 billion in Q1 2025, a decline of $736 million [165]. - International income before tax decreased from $5.3 billion in Q1 2024 to $3.7 billion in Q1 2025, a decline of $1.6 billion [166]. - Operating, selling, general and administrative expenses rose to $7.63 billion in Q1 2025 from $7.54 billion in Q1 2024, mainly due to higher legal reserves [158]. - Exploration expenses increased to $187 million in Q1 2025 from $129 million in Q1 2024, primarily due to higher dry hole expenses [159]. - Depreciation, depletion and amortization expenses slightly increased to $4.12 billion in Q1 2025 from $4.09 billion in Q1 2024 [160]. Market Conditions - Crude oil prices averaged $76 per barrel in Q1 2025, down from $83 per barrel in Q1 2024, with a sensitivity of approximately $450 million for every dollar change in Brent prices [129]. - Purchased crude oil and products increased to $28.61 billion in Q1 2025 from $27.74 billion in Q1 2024, driven by higher natural gas and crude oil prices [157]. Strategic Initiatives - Chevron entered into a definitive merger agreement with Hess Corporation in October 2023, reflecting confidence in the acquisition [116]. - Between January and March 2025, Chevron purchased 15,380,000 shares of Hess common stock, representing approximately 4.99% of Hess's outstanding shares [117]. - Chevron continues to develop oil and gas resources while aiming to lower carbon intensity and grow new businesses in renewable fuels and carbon capture technologies [107]. - The Wellhead Pressure Management Project at Tengizchevroil LLP became fully operational at year-end 2024, with oil production from the Future Growth Project ramping up by the end of Q1 2025 [122]. Financial Position - Total debt and finance lease liabilities increased to $29.7 billion at March 31, 2025, up from $24.5 billion at December 31, 2024 [172]. - The debt ratio increased to 16.6% as of March 31, 2025, compared to 13.9% at December 31, 2024 [182]. - Current assets increased to $19,086 million as of March 31, 2025, up from $16,918 million at December 31, 2024 [179]. - Current liabilities decreased to $29,262 million as of March 31, 2025, from $30,563 million at December 31, 2024 [179]. - Noncontrolling interests were $836 million at March 31, 2025, slightly down from $839 million at December 31, 2024 [181].