Chevron profit hit by low crude oil prices and loss from Hess acquisition

Core Insights - Chevron reported a significant decline in net income for the second quarter, down approximately 44% to $2.49 billion, or $1.45 per share, compared to $4.43 billion, or $2.43 per share, in the same period last year [1] - The company incurred a $215 million loss related to the fair value measurement of Hess shares, but adjusted earnings per share were $1.77, surpassing Wall Street estimates of $1.70 [1][7] Acquisition Details - Chevron completed the acquisition of Hess Corporation on July 18, following a successful arbitration that dismissed Exxon's claim to a right of first refusal over Hess's assets in Guyana, allowing the $53 billion deal to proceed [2] - The acquisition is expected to contribute positively to earnings starting in the fourth quarter and aims to reduce annual run-rate costs by $1 billion by the end of 2025 [3] Production and Financial Performance - Chevron's total production reached approximately 3.4 million barrels per day, marking a 3% increase year-over-year, with U.S. production rising about 8% to 1.69 million bpd [4] - The production segment reported a profit of $2.72 billion, down 38% from $4.47 billion in the same period last year due to lower oil prices, while the refining business saw earnings increase by 23% to $737 million [5]