Chevron(US:CVX)2026-01-30 11:16Financial Performance - Reported earnings for Q4 2025 were $2.8 billion ($1.39 per share), down from $3.2 billion ($1.84 per share) in Q4 2024[3] - Adjusted earnings for Q4 2025 were $3.0 billion ($1.52 per share), compared to $3.6 billion ($2.06 per share) in Q4 2024[3] - Total revenues and other income for Q4 2025 were $46.873 billion, down from $52.226 billion in Q4 2024[33] - Net income attributable to Chevron Corporation for Q4 2025 was $2.770 billion, compared to $3.239 billion in Q4 2024[33] - Chevron Corporation reported a net income of $2.77 billion for Q4 2025, down from $3.24 billion in Q4 2024, and a total net income of $12.30 billion for the year, compared to $17.66 billion in 2024[34] - Total adjusted earnings for Q4 2025 were $3,028 million, compared to $3,632 million in Q4 2024, with annual adjusted earnings of $13,521 million versus $18,256 million in 2024[41] - Adjusted earnings per share for Q4 2025 were $1.52, down from $2.06 in Q4 2024, with annual adjusted earnings per share of $7.29 compared to $10.05 in 2024[41] Cash Flow and Capital Expenditures - Cash flow from operations reached $10.8 billion in Q4 2025, an increase from $8.7 billion in Q4 2024[4] - Cash flow from operations (CFFO) for the year was $33.94 billion, an increase from $31.49 billion in 2024[38] - Capital expenditures for 2025 were $17.3 billion, up from $16.4 billion in 2024[10] - Capital expenditures (Capex) totaled $17.35 billion for 2025, compared to $16.45 billion in 2024, with Q4 Capex at $5.26 billion, up from $4.34 billion[36] - The company reported a free cash flow of $16.60 billion for 2025, compared to $15.00 billion in 2024[38] Shareholder Returns - The company returned $27.1 billion to shareholders in 2025, including $12.8 billion in dividends and $12.1 billion in share repurchases[15] - A 4% increase in quarterly dividend to $1.78 per share was announced, payable on March 10, 2026[15] Production and Reserves - Worldwide and U.S. production increased by 12% and 16% respectively in 2025, achieving record levels[7] - The reserve replacement ratio for 2025 was 158%, with year-end proved reserves at approximately 10.6 billion barrels[13] - The acquisition of Hess contributed 261 MBOED to production in 2025, enhancing the company's upstream portfolio[13] Cost Management - Structural cost reductions of $1.5 billion were achieved in 2025, with a target of $3-4 billion by the end of 2026[15] Downstream Performance - U.S. downstream earnings increased due to lower operating expenses, higher margins on refined product sales, and the absence of prior-year severance charges[22] - Refinery crude unit inputs rose by 14% year-over-year, primarily driven by the ramp-up of the Light Tight Oil project and improved reliability at the Pasadena refinery[22] - Refined product sales increased by 3% compared to the previous year, attributed to higher demand for jet fuel[22] - International downstream earnings improved due to higher margins on refined product sales, offset by less favorable foreign currency effects[22] - Refinery crude unit inputs in international operations increased by 2% year-over-year, mainly due to lower turnaround activity at the South Korea affiliate refinery[22] Debt and Assets - Total assets increased to $324.01 billion in 2025 from $256.94 billion in 2024, while total debt rose to $40.76 billion from $24.54 billion[36] - The debt ratio increased to 17.9% in 2025 from 13.9% in 2024, indicating a higher proportion of debt relative to equity[36] Earnings by Segment - Chevron's total upstream earnings for Q4 2025 were $3.04 billion, a decrease from $4.30 billion in Q4 2024, while total downstream earnings improved to $823 million from a loss of $248 million[34] - U.S. Upstream reported earnings of $1,258 million for Q4 2025, down from $1,420 million in Q4 2024, with a total for the year of $5,815 million compared to $7,602 million in 2024[41] - International Upstream earnings were $1,777 million in Q4 2025, a decrease from $2,884 million in Q4 2024, with annual earnings of $7,007 million versus $11,000 million in 2024[41] - U.S. Downstream reported a loss of $230 million in Q4 2025, compared to a loss of $348 million in Q4 2024, with annual earnings of $1,375 million, up from $531 million in 2024[41] - International Downstream earnings increased to $593 million in Q4 2025 from $100 million in Q4 2024, with annual earnings of $1,647 million compared to $1,196 million in 2024[41] Special Items and Impacts - Net charges in the "All Other" segment increased to $(1.088) billion in Q4 2025 from $(0.817) billion in Q4 2024, primarily due to higher corporate tax costs and interest expenses[21] - Special items for the year included a total of $(1,505) million, impacting net income significantly[41] - Foreign currency effects resulted in a total impact of $(130) million in Q4 2025, compared to $722 million in Q4 2024[41] - The company experienced a decrease in total adjusted earnings due to various impairments and severance costs across segments[41] Future Outlook - The company aims to grow its oil and gas business while lowering the carbon intensity of operations and expanding into new energy businesses[21] - Chevron plans to provide forward guidance and sensitivities quarterly, with the next earnings discussion scheduled for January 30, 2026[24]