Chevron Reports Second Quarter 2025 Financial Results: Highlights Production Milestones and Strategic Growth
Chevron Corporation today announced financial results for the second quarter of 2025, reporting earnings of $2.5 billion, or $1.45 per diluted share. This compares to $4.4 billion, or $2.43 per diluted share, in the second quarter of 2024. Adjusted earnings for the period were $3.1 billion, or $1.77 per diluted share, compared to $4.7 billion, or $2.55 per diluted share, for the same period last year.
The decline in reported earnings was primarily driven by lower crude oil prices, decreased contributions from upstream and downstream equity affiliates, and a $215 million net loss associated with the fair value measurement of Hess Corporation shares and pension curtailment costs. These factors were partially offset by a gain on the sale of select non-operated pipeline assets in the United States. Foreign currency effects negatively impacted earnings by $348 million.
Despite the lower earnings compared to the prior year, Chevron delivered strong operational results and achieved multiple strategic and operational milestones. “Second quarter results reflect continued strong execution, record production, and exceptional cash generation,” said Mike Wirth, Chevron’s chairman and chief executive officer. “Our Permian Basin production reached 1 million barrels of oil equivalent per day, and both U.S. and global production reached new all-time highs for the company.”
Key Financial and Operational Metrics
Chevron’s cash flow from operations remained robust during the quarter, benefiting from the absence of working capital outflows experienced in the prior year and higher distributions from affiliates, particularly the company’s Tengizchevroil (TCO) operation in Kazakhstan. At similar commodity prices, operational cash flow for the quarter ranked among the highest in Chevron’s history.
Capital expenditures (capex) for the quarter were lower year-over-year. This decrease was mainly due to a drop in downstream spending and reduced affiliate capex, particularly at TCO. The inorganic acquisition of lithium acreage in the U.S. was a significant strategic investment but was more than offset by reductions in other areas.
In terms of shareholder returns, Chevron distributed $5.5 billion during the quarter. This included $2.6 billion in share repurchases and $2.9 billion in dividends. The company’s Board of Directors declared a quarterly dividend of $1.71 per share, payable on September 10, 2025, to shareholders of record as of August 19, 2025.
Strategic Expansion and Portfolio Enhancement
The second quarter also marked the completion of Chevron’s acquisition of Hess Corporation in July, following a favorable arbitration ruling related to Hess’s offshore Guyana asset. This acquisition significantly strengthens Chevron’s upstream portfolio, adding high-quality assets in key regions, including Guyana, the U.S. Bakken, and the Gulf of Mexico. “The completion of the Hess acquisition further strengthens our diversified portfolio and positions us to extend our production and free cash flow growth profile well into the next decade,” Wirth stated.
Chevron also made a notable entry into the U.S. lithium market by acquiring approximately 125,000 net acres in the Smackover Formation, located in Northeast Texas and Southwest Arkansas. This acquisition aligns with the company’s long-term strategy to support the energy transition through diversified energy resources, including direct lithium extraction for battery technology.
Internationally, Chevron expanded its exploration footprint by securing nine offshore blocks in Brazil and two blocks in Egypt during recent licensing rounds. These assets are expected to bolster the company’s future exploration and development activities in strategic basins.
Milestones in Renewable and Natural Gas Projects
In Louisiana, Chevron began production at its newly expanded renewable diesel facility in Geismar. The project increased production capacity from 7,000 barrels per day to 22,000 barrels per day, a significant milestone in Chevron’s efforts to grow its lower carbon energy offerings.
Additionally, the company entered into long-term contracts for the purchase of liquefied natural gas (LNG), raising its total U.S. Gulf Coast LNG offtake capacity to 7 million tonnes per year. These contracts are intended to enhance the company’s integrated gas strategy and strengthen its global LNG value chain.
As part of its organizational evolution, Chevron began implementing a new simplified structure on July 1, aimed at increasing operational efficiency through standardization and centralization of key business functions.
Segment Performance
Upstream – United States
U.S. upstream earnings declined from the prior year, primarily due to lower liquids realizations, increased depreciation, depletion, and amortization expenses, as well as higher operating costs. These were partly offset by higher production volumes, improved natural gas prices, and gains from asset sales. Net oil-equivalent production in the U.S. rose by 123,000 barrels per day year-over-year, driven mainly by growth in the Permian Basin and the Gulf of Mexico, despite lower production in the Rockies.
Upstream – International
International upstream earnings were also lower than in the second quarter of 2024, reflecting reduced affiliate income, particularly at TCO. This decrease was due to higher depreciation expenses and lower commodity realizations. Earnings were also impacted by lower volumes from divested assets in Canada and the Republic of Congo. However, these effects were partially offset by increased production in Kazakhstan, where the Future Growth Project (FGP) at TCO achieved nameplate capacity. International production was down 19,000 barrels per day overall due to the asset sales, despite the gains from FGP.
Downstream – United States
U.S. downstream earnings improved from the same quarter last year, primarily due to higher refining margins and lower operating costs. However, these gains were partially offset by reduced equity income from the Chevron Phillips Chemical Company, in which Chevron holds a 50 percent interest. Refinery crude unit inputs rose 17 percent compared to the previous year, driven by higher availability at the El Segundo refinery in California, the absence of a turnaround at Pascagoula, Mississippi, and enhanced capacity at the Pasadena, Texas refinery following the Light Tight Oil project completion. Refined product sales rose 4 percent, with strong demand for jet fuel and gasoline.
Downstream – International
International downstream earnings increased year-over-year as a result of improved refined product margins. However, these gains were partly reduced by adverse foreign exchange impacts and unfavorable tax adjustments. Refinery crude inputs rose 2 percent from the prior year, while refined product sales experienced a slight decline of 1 percent.
