Chevron(US:CVX)2025-11-06 16:29Financial 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].