Chevron Reports Lower Q2 Earnings Despite Record Output

  August 03, 2025

Chevron Corporation reported second-quarter 2025 earnings of $2.5 billion, down from $4.4 billion a year earlier, as weaker oil prices and lower affiliate income weighed on results.

Adjusted earnings came in at $3.1 billion, also down from $4.7 billion in Q2 2024. Despite the earnings drop, Chevron delivered record production and strong shareholder returns, capping a transformative quarter marked by the completed acquisition of Hess Corporation.

The company achieved a production milestone in the Permian Basin, hitting 1 million barrels of oil equivalent (BOE) per day for the first time. Overall net oil-equivalent production rose to 3.4 million BOE/d, its highest ever, driven by increases in Kazakhstan’s Tengizchevroil, the Gulf of Mexico, and the Permian.

Cash flow from operations reached $8.6 billion, one of the strongest quarters in company history, while $5.5 billion was returned to shareholders—marking the 13th consecutive quarter of distributions above $5 billion.

“Second quarter results reflect continued strong execution, record production, and exceptional cash generation,” said Chairman and CEO Mike Wirth.

The closing of Chevron’s acquisition of Hess in July adds high-margin assets in Guyana, the Gulf of Mexico, and the Bakken, strengthening Chevron’s upstream portfolio. Notably, arbitration regarding Hess’s stake in the prolific Guyana offshore project concluded favorably, clearing a key hurdle to closing the deal.

Segment Performance

• U.S. upstream earnings declined to $1.4 billion from $2.2 billion year-on-year, as lower realized liquids prices and higher operating costs offset volume gains.
• International upstream earnings also fell to $1.3 billion, reflecting weaker results from affiliates and asset sales in Canada and the Republic of Congo, although Kazakh output rose following Tengiz’s Future Growth Project.
• Downstream earnings improved year-over-year, with U.S. downstream profits rising to $404 million on higher refining margins and operational improvements at El Segundo and Pasadena. International downstream earned $333 million despite currency headwinds.

Strategic Highlights

Chevron continued to expand its low-carbon and energy transition initiatives. It began operations at its Geismar renewable diesel plant in Louisiana, tripling capacity to 22,000 barrels per day. The company also entered the U.S. lithium space with the acquisition of approximately 125,000 net acres in the

Smackover Formation for direct lithium extraction.

In LNG, Chevron secured long-term contracts boosting its U.S. Gulf Coast offtake capacity to 7

million tonnes per year, reinforcing its global gas strategy.

The company was also awarded nine offshore blocks in Brazil and two in Egypt, expanding its exploration footprint.

Financial Snapshot

• Reported EPS: $1.45 (vs. $2.43 in Q2 2024)
  • Adjusted EPS: $1.77 (vs. $2.55)
  • Free cash flow: $4.9 billion
  • Capex: $3.7 billion, down slightly from Q2 2024
• ROCE: 6.2%, compared to 9.9% in Q2 2024
• Debt ratio rose to 16.8%, from 12.7% a year earlier

Dividend Update

The board declared a quarterly dividend of $1.71 per share, payable on September 10, 2025.

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