Chevron Reports Fourth Quarter 2025 Results

Core Viewpoint - Chevron Corporation reported a decrease in earnings for the fourth quarter of 2025, primarily due to lower crude oil prices and unfavorable foreign currency effects, despite achieving record production levels and significant cash flow growth [1][6]. Financial 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 [1]. - 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 [1][2]. - Cash flow from operations (CFFO) increased to $10.8 billion in Q4 2025 from $8.7 billion in Q4 2024 [2][6]. Production and Operations - Chevron's net oil-equivalent production reached record levels, with a total of 4,045 MBOED in Q4 2025, up from 3,350 MBOED in Q4 2024 [5][9]. - The acquisition of Hess Corporation contributed 261 MBOED to production, while legacy Chevron operations added 124 MBOED [6][12]. - The company achieved a production target of 1 million barrels of oil equivalent per day in the Permian Basin [3]. Capital Expenditures and Cash Flow - Capital expenditures (Capex) for 2025 were $17.3 billion, an increase from $16.4 billion in 2024, driven by investments in legacy Hess assets [5][6]. - Free cash flow for 2025 was reported at $20.2 billion, compared to $21.3 billion in 2024 [5][6]. Shareholder Returns - Chevron returned $27.1 billion to shareholders in 2025, including $12.1 billion in share repurchases and $12.8 billion in dividends [6]. - The Board of Directors declared a 4% increase in the quarterly dividend to $1.78 per share, payable on March 10, 2026 [6]. Strategic Developments - The company successfully integrated Hess and achieved its initial synergy target of $1 billion [3][12]. - Chevron is advancing new energy opportunities in power, lithium, and hydrogen, while also achieving structural cost reductions of $1.5 billion in 2025 [3][12]. - The company continues to engage with the U.S. and Venezuelan governments to advance energy goals in Venezuela [4].