Chevron Tops Q4 Earnings Estimates, Lags Revenues, Hikes Dividend

Core Insights - Chevron Corporation (CVX) reported adjusted fourth-quarter earnings per share of $1.52, exceeding the Zacks Consensus Estimate of $1.44 due to higher-than-expected production and an 8% year-over-year reduction in costs [1][2] - The company's revenues totaled $46.9 billion, falling short of the Zacks Consensus Estimate of $51.4 billion and representing a 10.2% decrease year over year [2] Financial Performance - Chevron's upstream production reached 4,045 thousand oil-equivalent barrels per day (MBOE/d), a 21% increase year over year, driven by higher output from the Permian Basin, Gulf of America, and Kazakhstan [4] - The U.S. output increased 25% year over year to an all-time high of 2,055 MBOE/d, while international operations rose 17% to 1,990 MBOE/d [4] - Despite improved volumes, the upstream segment profit fell 29% to $3 billion due to lower liquid realizations, with average realized liquids prices in the U.S. down over 19% to $42.99 per barrel [5] Dividend and Shareholder Returns - Chevron increased its quarterly cash dividend by 4% to $1.78 per share, payable on March 10, 2026, to shareholders of record as of February 17 [3] Cash Flow and Expenditures - The company recorded $10.8 billion in cash flow from operations, up from $8.7 billion in the previous year, with free cash flow for the quarter at $4.2 billion [7][10] - Chevron distributed a total of $27.1 billion in cash to shareholders over the year, including $12.1 billion for share repurchases and $12.8 billion in dividends [7] - Capital and exploratory expenditures for the quarter were approximately $5.3 billion, an increase from $4.3 billion in the year-ago period, attributed to spending on legacy Hess assets and higher investments in U.S. data center power solutions [8]