Chevron Corporation

Chevron reported first-quarter earnings of $2.2 billion, or $1.11 per share, versus adjusted earnings of $2.8 billion, or $1.41 per share. The quarter included a $360 million legal reserve charge and foreign currency effects that reduced earnings by $223 million. Organic CapEx was $3.9 billion and inorganic CapEx was about $200 million; cash flow from operations, excluding working capital, was $7.1 billion, adjusted free cash flow was $4.1 billion, and share repurchases were $2.5 billion. Adjusted earnings were $440 million lower than last quarter, with Upstream up on higher realizations and lower DD&A, and Downstream down mainly from unfavorable timing effects of around $3 billion tied to the March price spike. Management said 2026 guidance is unchanged, capital spending is consistent with prior guidance, production is still expected to grow 7% to 10% this year, the budget is $18 billion to $19 billion, and the structural cost reduction target remains $3 billion to $4 billion by year-end. They also reiterated the 2030 targets shared in November: over 10% growth in adjusted free cash flow and EPS and a 3% improvement in ROCE, all at $70 Brent.

Mike Wirth struck a confident but cautious tone, emphasizing disciplined capital allocation, cost control, and a resilient portfolio despite market volatility and Middle East tensions. He said the company has “great visibility through 2030” and is positioned to capture value through integrated upstream/downstream operations, especially with higher equity crude flows and strong refinery utilization. On geopolitics, he said it is too early to draw firm long-term conclusions, but Chevron will stay consistent on discipline and investment in low-cost, long-life assets.

Eimear Bonner focused on the quarter’s financial mechanics and reiterated that guidance is unchanged. She highlighted $2.2 billion of reported earnings, $2.8 billion adjusted earnings, $7.1 billion of operating cash flow excluding working capital, $4.1 billion of adjusted free cash flow, and $2.5 billion of buybacks, while noting $3 billion of unfavorable timing effects and a $360 million legal reserve charge. She said the company is on track for its full-year capital guidance, with $18 billion to $19 billion of capital spending, 7% to 10% production growth, and $3 billion to $4 billion of structural cost reductions by year-end.

Analysts focused on the Middle East conflict, refinery and crude integration, capital allocation at higher prices, Venezuela receivables, TCO performance, LNG flexibility, and climate litigation. Management repeatedly said it is too early to change the framework from the conflict, and that Chevron will keep capital and cost discipline while using its integrated portfolio to move equity crude and capture margins. On Venezuela, Wirth said the roughly $1.5 billion receivable could still be outstanding at year-end but may be fully paid off sometime in 2027, and that more capital would only be considered after clearer fiscal, tax, royalty, and dispute-resolution terms.