Chevron Corporation
CVX · NYSE
Dec 2026
Next quarter
Expected to report Jan 29, 2027 — estimated from last year’s reporting date.
Consensus is $5.57 EPS for Dec 2026 across 7 estimates, ranging $3.64 to $7.00.
CVX Sep 2026
- 10.46%
- $4.78
- $5.28
- —
- —
Highlights
- Adjusted EPS: $5.28, 10.5% above the $4.78 consensus, versus $1.85 a year earlier and $6.06 in Q2; reported diluted EPS was $5.06.
- Earnings and oil prices: Chevron earned $9.9 billion, up from $3.5 billion a year ago but down from $12.1 billion in Q2. Brent averaged $97 per barrel, versus $69 a year ago and $104 in Q2.
- Refining strength: Downstream earnings rose to $4.9 billion from $1.1 billion a year ago, with U.S. refinery crude throughput setting a record at 1.093 million barrels per day and utilization near 98%.
- Cash generation: Cash flow from operations was $16.0 billion and adjusted free cash flow was $14.2 billion; Chevron reduced debt by $3.5 billion and ended the quarter with net debt-to-CFFO of 0.4x.
- Production: Net output averaged 3.98 million barrels of oil equivalent per day, down from 4.07 million in Q2 and 4.09 million a year ago; U.S. production was 2.043 million barrels per day, up slightly year over year.
- Venezuela: Chevron plans to invest $7 billion over five years with its joint ventures, targeting roughly 600,000 barrels per day by 2031 from about 300,000 expected by year-end; management cited total costs below $20 per barrel.
- Bakken and exploration: A midstream agreement is expected to cut Bakken tariffs about 50%; Chevron also expects to raise exploration spending 50% versus 2025.
Analysis
Chevron’s third-quarter adjusted EPS of $5.28 beat the $4.78 consensus by 10.5%, while reported EPS was $5.06. Net income attributable to Chevron was $9.9 billion, nearly three times the $3.5 billion a year earlier but below Q2’s $12.1 billion. Adjusted earnings of $10.4 billion likewise exceeded the year-ago $3.6 billion but declined from $12.0 billion in Q2. The sequential pullback reflected lower upstream realizations and liftings, plus unfavorable timing effects as commodity prices rose; Brent averaged $97 per barrel, down from $104 in Q2 but above $69 a year ago. Timing effects reduced earnings by $1.58 billion, compared with a $1.54 billion benefit in Q2.
The print was defined by strong refining and cash generation alongside lower production and a stepped-down upstream contribution. Downstream earnings reached $4.9 billion, up from $1.1 billion a year ago, as higher refining margins and reliable operations supported record U.S. crude throughput. Production averaged 3.98 million barrels of oil equivalent per day, versus 4.07 million in Q2 and 4.09 million a year earlier, amid entitlement impacts and Middle East disruption. Cash from operations was $16.0 billion, while adjusted free cash flow was $14.2 billion, including affiliate loan repayments and asset-sale proceeds. Chevron also reduced debt and highlighted Venezuela and the Bakken as important portfolio initiatives.
Earnings and timing
- Adjusted results: Adjusted earnings were $10.36 billion, or $5.28 per diluted share, compared with $3.63 billion and $1.85 a year ago and $11.98 billion and $6.06 in Q2. Reported earnings were $9.92 billion, or $5.06 per share.
- Quarterly drivers: Upstream earnings were $5.70 billion, down from $8.18 billion in Q2, as lower realizations, lower liftings and unfavorable timing effects outweighed lower depreciation and tax effects. Brent averaged $97 per barrel, versus $104 in Q2.
- Timing and items: Timing effects reduced earnings by $1.58 billion, after adding $1.54 billion in Q2. Reported earnings also included a $160 million legal reserve, a $110 million impairment and $24 million of pension settlement costs; foreign currency effects reduced earnings by $143 million.
- Year-over-year comparison: Reported earnings rose from $3.54 billion and adjusted earnings from $3.63 billion in Q3 2025. Higher crude realizations and refined-product margins supported the increase, while production was lower.
Refining and downstream
- Segment earnings: Downstream earned $4.93 billion, versus $1.14 billion a year ago and $4.87 billion in Q2. U.S. downstream earnings were $3.59 billion, up from $638 million a year earlier, primarily on higher refined-product margins.
- Record U.S. throughput: U.S. refinery crude inputs reached 1.093 million barrels per day, up 3% year over year, with crude utilization near 98%. Refined-product sales were 1.304 million barrels per day, roughly flat with the year-ago period.
- International conditions: International downstream earnings rose to $1.35 billion from $499 million a year ago, on higher product margins despite unfavorable timing effects. Sales declined 9% year over year, with supply disruptions from the Middle East conflict cited as a factor.
- Yield and capacity: Management said a proprietary catalyst lifted distillate output by more than 10% at its largest U.S. refineries; U.S. distillate yield was 46% in Q3. Chevron also cited a planned 7% capacity increase at Pascagoula by 2030.
Production and operations
- Total production: Net oil-equivalent production averaged 3.98 million barrels per day, compared with 4.07 million in Q2 and 4.09 million a year ago. The year-over-year decline reflected lower entitlements from higher prices and Middle East conflict impacts, partly offset by Australian records and one month of Venezuela output under equity accounting.
- U.S. output: U.S. production was 2.043 million barrels per day, 3,000 barrels per day above the year-ago quarter and above 2 million for the fifth consecutive quarter. Gulf of America project ramp-ups partly offset lower Bakken production.
- Gas and operating records: Management reported a new quarterly natural-gas production record above 9 billion cubic feet per day, led by Australia and the Eastern Mediterranean, alongside a new Gulf of America deepwater production record.
- Operational productivity: Chevron said the Permian remained above 1 million barrels of oil equivalent per day for a sixth consecutive quarter. In the DJ Basin, AI-supported reliability work reduced lost-production events by 50%; advanced chemicals increased cumulative Permian production by up to 23% in the first 12 months.
Cash flow and balance sheet
- Cash generation: Cash flow from operations was $16.0 billion, up from $9.4 billion a year ago but below $22.6 billion in Q2. Excluding working capital, it was $16.6 billion; working capital was pressured by sharp commodity-price increases late in the quarter.
- Free cash flow: Free cash flow was $12.0 billion and adjusted free cash flow was $14.2 billion. Adjusted free cash flow included $992 million of net loan repayments from equity affiliates and $710 million of asset-sale proceeds.
- Debt and liquidity: Chevron repaid $3.5 billion of debt during the quarter and reported a $7.8 billion sequential reduction in net debt. At quarter-end, net debt was $20.7 billion and net debt-to-CFFO was 0.4x.
- Capital returns and investment: Capital expenditures were $4.0 billion, down from $4.4 billion a year earlier. The board declared a quarterly dividend of $1.78 per share, payable December 10, 2026.
Venezuela growth plan
- Investment and output: Chevron’s joint ventures plan to invest $7 billion over five years. Management targets roughly 300,000 barrels per day of gross production by year-end and about 600,000 by 2031, more than double the current level.
- Project economics: Management described the development as a self-funding, drilling-led program, with total costs below $20 per barrel and no major additional infrastructure spend expected. Chevron markets all crude from the three ventures, with most going to U.S. refineries.
- Commercial framework: The company said improved fiscal terms make the opportunity more competitive within its portfolio and cited contract protections, including stability clauses and international arbitration. It also said new production growth is supported by existing infrastructure.
Portfolio and exploration
- Bakken economics: Agreements are expected to reduce midstream tariffs by about 50%, improving returns, expanding economic inventory and increasing operational flexibility. Chevron plans to move from three rigs to two at year-end while maintaining about 180,000 barrels of oil equivalent per day.
- Bakken transaction: The Hess Midstream-related transaction is expected to add 0.5 percentage points to corporate ROCE and remove $3.7 billion of debt upon closing. Management expects a one-time, non-cash after-tax loss of $3 billion to $4 billion, treated as a special item.
- Exploration pipeline: Chevron reported 15 infrastructure-led discoveries in two years at a 40% success rate, and said at least half could become tieback positions. The company plans to increase exploration spending 50% relative to 2025 and expects to drill about 20 wells a year over time.
- Technology and new supply: Management said AI had generated more than $100 million of value year to date. Chevron also announced an Angola discovery within tieback range of its facilities and completed commissioning of its Louisiana oilseed-processing plant with Bunge.
