Chevron earnings beat Wall Street estimates as oil production hits record boosted by Hess acquisition

Core Insights - Chevron reported third-quarter financial results that exceeded Wall Street expectations, driven by record production partly due to the acquisition of Hess Corporation [1][2] Financial Performance - Net income decreased by 21% to $3.54 billion, or $1.82 per share, compared to $4.49 billion, or $2.48 per share, in the same period last year [2] - Excluding costs related to the Hess acquisition and foreign currency impacts, Chevron's earnings were $1.85 per share, surpassing Wall Street's estimate of $1.71 per share [2][8] - Revenue for the quarter was $49.73 billion, exceeding expectations of $49.01 billion [8] Production and Operations - Chevron achieved record production of 4.1 million barrels per day, a 21% increase year-over-year, attributed to the Hess acquisition and operations in the Permian Basin, Gulf of Mexico, and Kazakhstan [4] - U.S. production generated a profit of $1.28 billion, down 34% from $1.95 billion in the same quarter of 2024, with production increasing to 2 million barrels per day, up 27% from 1.6 million barrels per day in the previous year [4] - International production earnings were $2 billion, a 24% decline from $2.64 billion in the same quarter last year, with production rising 16% to 2 million barrels per day [5] Downstream and Refining - Profits in Chevron's downstream U.S. refining business surged over 300% to $638 million, compared to $146 million in the third quarter of 2024 [6] - International refining earnings increased by 11% to $499 million from $449 million in the previous year, driven by higher margins on product sales [6] Capital Expenditures and Cash Flow - Capital expenditures rose by 7% to $4.4 billion compared to the same quarter last year, primarily due to investments in legacy Hess assets [7] - Adjusted free cash flow increased approximately 50% to $7 billion compared to the previous year [7]