Chevron Q4 2025 net income drops 12.5% to $2.84bn

Core Insights - Chevron reported a net income of $2.84 billion in Q4 2025, a decrease of approximately 12.5% from $3.25 billion in Q4 2024 [1] - The company's total revenue for Q4 2025 was $46.87 billion, down 10.2% from $52.2 billion in the same period of the previous year [2] Financial Performance - Diluted earnings per share were $1.39 in Q4 2025, a fall of around 24.5% from $1.84 in Q4 2024 [1] - Adjusted earnings were $3.02 billion for Q4 2025, down by approximately 16.8% from $3.63 billion in the same quarter last year [1] - Adjusted diluted earnings per share stood at $1.52 in Q4 2025, compared to $2.06 in Q4 2024, a decrease of around 26.2% [2] Operational Highlights - Cash flow from operations rose to $10.8 billion in Q4 2025, an increase of roughly 24.1% from $8.7 billion in the same quarter of the previous year [2] - Excluding working capital adjustments, cash flow from operations increased to $9.1 billion in Q4 2025 from $5.3 billion in Q4 2024, an increase of approximately 71.7% [4] Segment Performance - Chevron earned $3.03 billion in Q4 2025 through its upstream segment, which is around 29.5% lower than the $4.3 billion achieved in Q4 2024 [3] - The downstream segment reported earnings of $823 million in Q4 2025, compared to a loss of $248 million in Q4 2024 [3] - The 'All Other' category reported a loss of $1.08 billion in Q4 2025, compared to a loss of $817 million in Q4 2024 [3] Annual Overview - The company's net income for the full year 2025 was $12.48 billion, down by approximately 29.7% from $17.75 billion in 2024 [5] - Total revenue for the full year 2025 was $189.03 billion, a decrease of around 6.8% from $202.79 billion in 2024 [5] - Chevron achieved record oil-equivalent production levels globally and in the US, aided by the Hess acquisition, which added 261,000 barrels of oil equivalent per day [5] Reserves and Investments - Year-end proved reserves stood at around 10.6 billion barrels of net oil equivalent, with significant additions from Hess and new projects in the Permian Basin, Australia, and Guyana, resulting in a reserve replacement ratio of 158% [6] - Capital expenditure rose due to investments in legacy Hess assets and US data center power solutions, despite reduced downstream spending [6] Strategic Moves - Through the completion of the Hess acquisition, Chevron achieved a $1 billion synergy target [7] - The company commenced production at key projects in Kazakhstan and the Gulf of Mexico during Q4 [7]