Chevron(US:CVX)2025-08-07 14:18PART I FINANCIAL INFORMATION This section presents Chevron's comprehensive financial information, including consolidated statements, management's analysis, market risk disclosures, and internal controls Consolidated Financial Statements This section presents Chevron's consolidated financial statements, including income, balance sheet, and cash flow, highlighting a decrease in net income and total assets for the first half of 2025 Consolidated Statement of Income Chevron reported a significant decrease in net income and diluted EPS for Q2 and the first six months of 2025, primarily due to lower revenues Consolidated Statement of Income Highlights (in Millions, except per-share amounts) | Metric | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues and Other Income | $44,822 | $51,181 | -12.4% | $92,432 | $99,897 | -7.5% | | Net Income Attributable to Chevron | $2,490 | $4,434 | -43.8% | $5,990 | $9,935 | -39.7% | | Diluted EPS | $1.45 | $2.43 | -40.3% | $3.45 | $5.40 | -36.1% | Consolidated Balance Sheet As of June 30, 2025, Chevron's total assets and stockholders' equity decreased, primarily due to reduced cash and share repurchases, while total liabilities remained stable Consolidated Balance Sheet Highlights (in Millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $34,691 | $40,911 | | Total Assets | $250,820 | $256,938 | | Total Current Liabilities | $34,827 | $38,558 | | Long-Term Debt | $23,276 | $20,135 | | Total Liabilities | $103,562 | $103,781 | | Total Chevron Stockholders' Equity | $146,417 | $152,318 | Consolidated Statement of Cash Flows Net cash from operations increased slightly for the first half of 2025, while investing activities saw higher outflows due to the Hess acquisition, and financing outflows decreased Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30, in Millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $13,765 | $13,123 | | Net Cash Used for Investing Activities | ($9,050) | ($7,910) | | Net Cash Used for Financing Activities | ($7,649) | ($9,428) | | Net Change in Cash | ($2,887) | ($4,310) | Notes to Consolidated Financial Statements Detailed notes reveal significant decreases in Upstream earnings, ongoing litigation, the completion of the Hess acquisition, and the issuance of new long-term debt - On July 18, 2025, the company completed the acquisition of Hess Corporation for an aggregate purchase price of approximately $48 billion, including assumed debt of $8.8 billion101102 - The company is a defendant in 33 climate change-related lawsuits across the U.S. and 37 coastal erosion lawsuits in Louisiana, with a $131 million accrual for one case despite plans to appeal5960 - In Q1 2025, the company issued $5.5 billion in new long-term debt, with maturities ranging from 2027 to 203599100 Earnings by Segment (Six Months Ended June 30, in Millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Upstream | $6,485 | $9,709 | | Downstream | $1,062 | $1,380 | | All Other | ($1,557) | ($1,154) | | Net Income Attributable to Chevron | $5,990 | $9,935 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the decline in Q2 2025 earnings driven by Upstream factors, partially offset by Downstream gains, while highlighting strategic initiatives, a strong financial position, and capital management Results of Operations Q2 2025 saw a significant decline in Upstream earnings due to lower prices and affiliate contributions, while Downstream earnings improved, and 'All Other' charges increased Upstream Earnings (Q2 2025 vs Q2 2024, in Millions) | Segment | Q2 2025 Earnings | Q2 2024 Earnings | Key Drivers | | :--- | :--- | :--- | :--- | | U.S. Upstream | $1,418 | $2,161 | Lower liquids realizations (-$1.0B), partly offset by higher sales volumes (+$380M) | | International Upstream | $1,309 | $2,309 | Lower affiliate earnings at TCO (-$550M), lower liftings (-$320M), and lower liquids realizations (-$250M) | Downstream Earnings (Q2 2025 vs Q2 2024, in Millions) | Segment | Q2 2025 Earnings | Q2 2024 Earnings | Key Drivers | | :--- | :--- | :--- | :--- | | U.S. Downstream | $404 | $280 | Higher refined product margins (+$140M) and lower opex (+$100M), partly offset by lower CPChem earnings (-$150M) | | International Downstream | $333 | $317 | Higher refined product margins (+$190M), offset by unfavorable tax impacts (-$70M) and currency effects (-$101M) | - Net charges for 'All Other' increased by $341 million in Q2 2025 compared to Q2 2024, primarily due to an unfavorable fair market valuation adjustment for Hess shares, higher interest expense, and pension curtailment costs170 Liquidity and Capital Resources Chevron's liquidity includes $4.1 billion in cash, with total debt increasing to $29.5 billion, while the company generated strong operating cash flow, paid dividends, and continued share repurchases Key Financial Ratios and Metrics | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $29.5 Billion | $24.5 Billion | | Net Debt Ratio | 14.8% | 10.4% | | Free Cash Flow (H1) | $6.1 Billion | $5.1 Billion (H1 2024) | - Capital expenditures for the first six months of 2025 were $7.6 billion, down from $8.1 billion in the same period of 2024203 - The company repurchased 18.6 million shares for $2.6 billion in Q2 2025 and expects to repurchase $2.5-$3.0 billion in Q3 2025199 - Dividends of $5.9 billion were paid to common stockholders during the first six months of 2025, and a quarterly dividend of $1.71 per share was declared for Q3 2025192 Quantitative and Qualitative Disclosures About Market Risk The company states that there have been no material changes in its market risk disclosures for the six months ended June 30, 2025, compared to the information provided in its 2024 Annual Report on Form 10-K - Information about market risks for the six months ended June 30, 2025, does not differ materially from that discussed in Chevron's 2024 Annual Report on Form 10-K207 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025208 - There were no material changes in the company's internal control over financial reporting during the quarter ended June 30, 2025209 PART II OTHER INFORMATION This section details legal proceedings, new risk factors, equity security sales, and other general corporate information Legal Proceedings Chevron reports a new legal proceeding from the ECMC with a potential $1.0 million civil penalty, in addition to ongoing climate change and coastal erosion lawsuits - On June 26, 2025, the Colorado Energy & Carbon Management Commission (ECMC) issued a notice of alleged violations following a well control incident, which may result in a civil penalty of $1.0 million or more212 - The report references Note 11 for details on other significant legal proceedings, including climate change and Louisiana coastal lawsuits212 Risk Factors A new risk factor highlights the potential failure to successfully integrate the Hess acquisition and realize anticipated benefits, which could negatively impact financial results - A new risk factor has been added concerning the Hess acquisition, which closed in July 2025214 - Key risks include the potential failure to successfully integrate Hess and realize anticipated benefits, such as cost synergies and production growth, which could disrupt plans and negatively affect financial results214 Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2025, Chevron repurchased 18.6 million shares for $2.6 billion as part of its $75 billion stock repurchase program, with $42.1 billion remaining authorized Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 11,783,184 | $140.41 | | May 2025 | 6,837,101 | $137.88 | | June 2025 | 635 | $144.01 | | Total | 18,620,920 | $139.48 | - As of the end of Q2 2025, approximately $42.1 billion remained authorized for repurchase under the 2023 Program216 Other Information The company reports that during the three months ended June 30, 2025, none of its directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the second quarter of 2025217 Exhibits This section lists filed exhibits, including the Restated Certificate of Incorporation, CEO and CFO certifications, and Interactive Data Files (Inline XBRL) - Filed exhibits include CEO and CFO certifications under Sarbanes-Oxley rules218 - The report includes Interactive Data Files (Inline XBRL) as Exhibit 101218