Chevron(US:CVX)2025-08-01 10:17Financial Performance - Chevron reported earnings of $2.5 billion ($1.45 per share - diluted) for Q2 2025, a decrease from $4.4 billion ($2.43 per share - diluted) in Q2 2024[3] - Adjusted earnings for Q2 2025 were $3.1 billion ($1.77 per share - diluted), down from $4.7 billion ($2.55 per share - diluted) in the same quarter last year[4] - Total revenues and other income for Q2 2025 were $44.822 billion, a decrease of 13% from $51.181 billion in Q2 2024[36] - Net income attributable to Chevron Corporation for Q2 2025 was $2.490 billion, down 44% from $4.434 billion in Q2 2024[36] - Total reported earnings for Q2 2025 were $2.49 billion, a decrease from $4.43 billion in Q2 2024[40] - Adjusted earnings for the six months ended June 30, 2025, were $6.87 billion, compared to $10.09 billion for the same period in 2024, reflecting a decline of approximately 31.8%[45] - The total adjusted earnings for the three months ended June 30, 2025, were $3.05 billion, down from $4.68 billion in the same period of 2024, indicating a decrease of 34.7%[45] Cash Flow and Capital Expenditures - Cash flow from operations was $8.6 billion in Q2 2025, compared to $6.3 billion in Q2 2024, reflecting strong operational performance[4] - Net cash provided by operating activities increased to $8.6 billion in Q2 2025 from $6.3 billion in Q2 2024[43] - Capital expenditures (Capex) for Q2 2025 were $3.7 billion, lower than $4.0 billion in Q2 2024[8] - Capital expenditures (Capex) for Q2 2025 were $3.71 billion, down from $3.97 billion in Q2 2024[43] Shareholder Returns - Chevron returned $5.5 billion to shareholders in Q2 2025, marking the 13th consecutive quarter of over $5 billion returned[6] Production and Operations - The company achieved record production of 1 million barrels of oil equivalent per day in the Permian Basin during Q2 2025[5] - U.S. upstream earnings decreased to $1.418 billion in Q2 2025, down from $2.161 billion in Q2 2024, primarily due to lower liquids realizations[14] - International downstream earnings increased to $333 million in Q2 2025, compared to $317 million in Q2 2024, driven by higher margins on refined product sales[19] - Upstream net income for Q2 2025 was $2.727 billion, a decline of 39% compared to $4.470 billion in Q2 2024[37] - Downstream net income for Q2 2025 was $737 million, an increase of 24% from $597 million in Q2 2024[37] Debt and Equity - Total debt increased to $29.47 billion as of June 30, 2025, compared to $24.54 billion at the end of 2024[40] - The debt ratio rose to 16.8% in Q2 2025 from 13.9% in Q2 2024[40] - Chevron's total stockholders' equity decreased to $146.42 billion as of June 30, 2025, from $152.32 billion at the end of 2024[40] Special Items and Adjustments - Special items for the three months ended June 30, 2025, resulted in a total loss of $215 million, compared to a gain of $172 million in the same period of 2024[45] - Foreign currency effects for the three months ended June 30, 2025, had a negative impact of $348 million, compared to a negative impact of $243 million in the same period of 2024[45] Strategic Developments - Chevron completed the acquisition of Hess Corporation in July 2025, enhancing its portfolio with high-quality assets[6] - The company entered the U.S. lithium sector by acquiring approximately 125,000 net acres for direct lithium extraction[12] Cost Management - Operating expenses for Q2 2025 were $7.646 billion, slightly lower than $7.710 billion in Q2 2024[36] - Chevron's total costs and other deductions for Q2 2025 were $40.675 billion, a decrease from $44.145 billion in Q2 2024[36] - The company anticipates sustainable structural cost reductions compared to 2024 levels through operational efficiencies and divestments[28] Performance Ratios - Annualized return on capital employed (ROCE) for Q2 2025 was 6.2%, down from 9.9% in Q2 2024[40]