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

Financial Performance - Chevron's adjusted earnings per share were $1.77, exceeding the street's expectation of $1.70 [1] - Revenue surpassed expectations, reaching $44.8 billion compared to the anticipated $43.8 billion [1] - Free cash flow increased by 15%, despite a 10% decrease in crude oil prices [3] - Free cash flow is projected to grow by $12.5 billion over the next two years, from $8.5 billion in 2024 to $21 billion in 2026 [4] Production and Operations - Worldwide and US production reached record levels, with production hitting 1 million barrels of oil equivalent per day for the first time [2] - Production in the Permian Basin has seen a tenfold increase over the past decade [2] - Synergies from the Hess acquisition are expected to contribute an additional $1.5 billion from Guyana and $1.5 billion in overall synergies [6] Investment and Capital Allocation - Dividends and share buybacks are secure, with buybacks ranging between $10 billion and $20 billion per year [4] - Chevron repurchased approximately half of the shares issued for the Hess acquisition since the deal was announced in October 2023 [7] - Chevron anticipates $1 billion in synergies from the Hess deal by the end of the year, halving the initially projected timeframe [8] Strategic Partnerships and Challenges - The Hess deal, announced in October 2023, was delayed due to mediation initiated by ExxonMobil regarding the Guyana share [7] - Despite tensions, Chevron expects continued cooperation with ExxonMobil in Guyana, where Hess has had a couple hundred people working on the ground [9][10][11][12]