Chevron Corporation

Chevron reported second-quarter earnings of $12.1 billion, or $6.11 per share; adjusted earnings were $12.0 billion, or $6.06 per share. Cash flow from operations, excluding working capital, was nearly $20 billion; the company also cited $19.7 billion of cash flow from operations excluding working capital and $15.4 billion of adjusted free cash flow. Organic CapEx was $4.4 billion in the quarter, and Chevron said it now expects full-year 2026 organic CapEx at the lower end of its $18 billion to $19 billion guidance range. Production was described as the second highest quarter ever, up more than 200,000 boe/d, with global upstream production up more than 5% quarter-over-quarter. Chevron said its net debt to CFFO ratio was 0.6x and it reduced debt by more than $8 billion. Looking ahead, management reiterated 2030 objectives of 2% to 3% annual production growth, adjusted free cash flow growth averaging greater than 10% per year, and more than 3% improvement in ROCE, all at flat commodity prices lower than today.

Mike Wirth framed the quarter as evidence that Chevron’s strategy, capital discipline and operating execution are working despite geopolitical uncertainty and market volatility. He emphasized record U.S. upstream production, record refinery throughput, early delivery of the $3 billion structural cost target, and $1.5 billion of Hess synergies realized ahead of schedule. He also pointed to a broader growth portfolio across Guyana, the Bakken, the Eastern Mediterranean, Argentina, West Africa, Iraq and power, while stressing that the company will stay disciplined on capital.

Eimear Bonner highlighted strong financial performance and balance sheet improvement, citing $12.1 billion of earnings, nearly $20 billion of operating cash flow excluding working capital, and $15.4 billion of adjusted free cash flow. She said Chevron reduced debt by more than $8 billion and that net debt to CFFO improved to 0.6x. On costs, she said Chevron achieved $3 billion of structural cost reductions over the past 12 months, 6 months ahead of schedule, with more than 70% from efficiency gains. She also said organic CapEx is tracking to the low end of the $18 billion to $19 billion range this year, helped by capital efficiency gains in the Permian and the broader shale and tight portfolio.

Analysts pressed on TCO production, debottlenecking, CPC pipeline risk, shale and tight capital efficiency, the long-term role of power, Iraq, Venezuela and Vaca Muerta. Management said TCO had an exceptionally strong quarter, with affiliate distributions of roughly $3 billion and confidence in $6 billion of guidance at $70 Brent, while the third-generation plant at Guyana’s FGP has been debottlenecked from 260,000 bpd to 320,000 bpd and total processing capacity is now slightly above 1 million bpd. On CPC, Chevron said all three SPMs will be available later in the third quarter and that it has alternatives such as Caspian shipments, rail and storage, but also stressed CPC remains the primary route to market. On power, Jeff Gustavson said Kilby is a proof point for a repeatable, contracted model, but the company will remain disciplined and pursue value over growth.