Key Takeaways:
Chevron reported Q2 net income of $12.1 billion, or $6.11 per share, up from $2.5 billion a year earlier.
"Our strong second quarter performance is a result of disciplined investment and strong execution that drove record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets," Mike Wirth, chairman and chief executive officer at Chevron, said.
Revenue rose to $67.2 billion from $44.4 billion a year earlier. Adjusted earnings were $12.0 billion, or $6.06 per share. Cash flow from operations excluding working capital totaled $19.7 billion. Net oil-equivalent production rose 20 percent to 4.07 million barrels per day, with U.S. upstream output reaching a record 2.08 million barrels per day. U.S. refinery crude throughput hit a record 1.07 million barrels per day at more than 97 percent capacity utilization.
The results come as Brent crude averaged $104 per barrel in the quarter, up from $68 a year earlier. Chevron reduced total debt by a record $8.4 billion and achieved $3 billion in annual structural cost savings six months early. The company also signed a 20-year power purchase agreement with Microsoft to supply 2.67 gigawatts to a West Texas data center.
Upstream earnings rose to $8.2 billion from $2.7 billion a year earlier, driven by higher liquids realizations and sales volumes. International upstream earnings reached $4.6 billion, while U.S. upstream contributed $3.5 billion. Downstream earnings climbed to $4.9 billion from $737 million, with both U.S. and international segments posting gains on higher refined product margins. International downstream results included an asset sale gain and favorable foreign currency effects, while refinery crude unit inputs fell 10 percent from a year earlier because of supply disruptions from the Middle East conflict.
The company achieved $1.5 billion of annual run-rate savings from the Hess Corporation acquisition within one year of closing, exceeding the initial target by 50 percent. Chevron also signed heads of agreements with the Government of Iraq to advance potential participation in the West Qurna 2 and Nasiriyah oilfield developments. The company completed the sale of its Hong Kong downstream fuels and lubricants businesses and agreed to sell its 50 percent interest in the Singapore Refining Company, with the transaction expected to close in 2027.
Chevron's board declared a quarterly dividend of $1.78 per share, payable September 10 to shareholders of record August 19. Return on capital employed reached 21.4 percent in the quarter, up from 6.2 percent a year earlier. Capital expenditures totaled $4.5 billion in the quarter, up from $3.7 billion a year earlier, largely due to spending on legacy Hess assets.
The strong quarter gives Chevron the financial flexibility to fund its capital program while returning cash to shareholders. Investors will watch third-quarter results for continued production growth from legacy Hess assets and the Permian Basin, as well as the impact of Middle East supply disruptions on international operations.
This article is for informational purposes only and does not constitute investment advice.
