Chevron reports first quarter 2026 earnings

07 May Chevron reports first quarter 2026 earnings

Chevron Corporation reported earnings of $2.2 billion ($1.11 per share – diluted) for first quarter 2026, compared with $3.5 billion ($2.00 per share -diluted) in first quarter 2025. Included in the quarter was a net loss of $360 million related to a legal reserve. Foreign currency effects decreased earnings by $223 million. Adjusted earnings of $2.8 billion ($1.41 per share – diluted) in first quarter 2026 compared to adjusted earnings of $3.8 billion ($2.18 per share – diluted) in first quarter 2025. See Attachment 4 for a reconciliation of adjusted earnings.

Financial Highlights

• Reported earnings decreased compared to first quarter 2025 primarily due to unfavorable
  timing effects of approximately $2.9 billion. These effects include timing mismatches in
  earnings recognition related to the mark-to-market of financial derivatives prior to the
  physical delivery of the associated hydrocarbons, as well as the impact of LIFO inventory
  accounting. Excluding those unfavorable effects, earnings improved due to upstream
  production growth and higher refining margins.
• Production in the first quarter of 2026 was higher than first quarter last year largely due to
  the acquisition of Hess Corporation (Hess) and growth in the Gulf of America and the
  Permian Basin, partly offset by downtime at the company’s 50 percent owned affiliate
  Tengizchevroil (TCO) and curtailments in the Middle East (Israel and the Partitioned Zone
  between Saudi Arabia and Kuwait). U.S. production exceeded 2 million oil-equivalent barrels
  per day for the third consecutive quarter.
• U.S. refinery crude unit throughput remains over 1 million barrels per day for the fifth
  consecutive quarter and achieved a record in March 2026.
• Capex in the first quarter of 2026 was higher than last year largely due to spend on legacy
  Hess assets, partially offset by lower spend in the Permian Basin.
• Cash flow from operations in the first quarter of 2026 was lower than a year ago primarily
  due to higher working capital outflows largely resulting from the sharp increase in commodity
  prices in March 2026. Adjusted free cash flow benefited from a $1 billion loan repayment
  from TCO.
• The company returned $6.0 billion of cash to shareholders during the quarter, including
  share repurchases of $2.5 billion and dividends of $3.5 billion.
• The company’s Board of Directors declared a quarterly dividend of one dollar and seventyeight cents ($1.78) per share, payable June 10, 2026, to all holders of common stock as
  shown on the transfer records of the corporation at the close of business on May 19, 2026.

Business Highlights and Milestones

• Announced an agreement in Venezuela to expand Chevron’s heavy oil interest in the
  Petroindependencia, S.A. joint venture and include rights to develop the adjacent Ayacucho
  8 area at the Petropiar, S.A. joint venture in the Orinoco Oil Belt.
• Entered into an exclusivity agreement with Microsoft and Engine No. 1 related to a proposed
  power generation and electricity offtake agreement to support the power project under
  development in West Texas.
• Expansions at Tamar and Leviathan in Israel have achieved start-up, adding production
  capacity to support growing demand and regional energy security.
• Reached a final investment decision on the Aseng gas project in Equatorial Guinea,
  advancing the country’s efforts to expand its role in global gas markets.
• Discovered oil at the Bandit prospect in Green Canyon Block 680 in the Gulf of America,
  through a non-operated joint venture.
• Entered Libya as a winning bidder in the Sirte Basin, expanding the company’s exploration
  portfolio with high-quality acreage and high-impact prospects.
• Awarded four offshore exploration leases in Greece, further expanding the company’s
  position in the Eastern Mediterranean region.
• Farmed into the OFF-7 block in Uruguay, building depth in the exploration portfolio. Related News