First quarter earnings reported at $5.5 billion or $2.97 per share.
Adjusted earnings stood at $5.4 billion or $2.93 per share.
A sequential quarter comparison showed adjusted earnings decrease by $1 billion.
The adjusted downstream earnings were lower, primarily due to timing effects associated with the rising commodity price environment.
Worldwide oil equivalent production was the highest first quarter in the company’s history, up over 12% from last year.
Production in the United States increased by 35%, largely due to the PDC Energy acquisition and organic growth in the Permian Basin.
Future Guidance
Chevron plans to grow production more than 10% from the same quarter last year.
Plans to announce final investment decisions to grow renewable fuels and hydrogen businesses.
Expectation of $6 billion in cash returns to shareholders for the eighth straight quarter over $5 billion.
The Future Energy Fund focused on venture investments in lower-carbon technologies has been announced.
A forecast for increased TCO (Tengizchevroil) operation cash flow, expecting $4 billion in free cash flow in 2025 and $5 billion in 2026, assuming a $60 Brent price.
Projected increases in dividend per share by 8%.
Share repurchases are intended to resume at the $17.5 billion annual rate post-Hess shareholder vote.
Trends, Market Conditions, Sentiment
Chevron has demonstrated strong operational performance, maintaining cost and capital discipline while returning significant cash to shareholders.
There is a strategic push toward renewable fuels and hydrogen business investments, indicating Chevron’s gradual shift toward sustainable energy sources.
The ongoing merger with Hess symbolizes Chevron’s strategic direction to create a premier energy company with world-class capabilities.
The successful start-up of WPMP at TCO and upcoming additional major equipment operations indicate operational excellence and project management efficiency.
The higher worldwide oil-equivalent production signifies Chevron’s robust production capabilities and effective asset integration post-acquisitions.
The market conditions are highlighted by rising commodity prices affecting downstream earnings, indicating sensitivity to global energy price trends.
Notable Quotes
”Chevron continues to deliver strong operational performance, maintain cost and capital discipline, and consistently return cash to shareholders.” - Michael Wirth
”We delivered another quarter of strong earnings, ROCE, and cash returns to shareholders.” - Eimear Bonner
”The strategic combination (with Hess) creates a premier energy company with world-class capabilities and assets to deliver superior shareholder value.” - Michael Wirth
”We expect $4 billion of free cash flow in 2025 and $5 billion in 2026 at $60 Brent. This will flow to us through a combination of dividends…” - Eimear Bonner
”We’re really pleased with the progress that’s been made and pleased that we’ve begun the initial start-up of WPMP…” - Michael Wirth
