Key Highlights

● Second-quarter reported earnings were $12.1bn, or $6.11 per diluted share.

● Total debt fell by a record $8.4bn to $37.1bn at 30 June.

● Chevron achieved $1.5bn of annual run-rate Hess synergies, 50% above target.

● Net oil-equivalent production reached 4,070 thousand barrels per day, a US record.

Chevron Corporation (NYSE:CVX) released second-quarter 2026 results on 31 July 2026. Reported earnings were $12.1bn, or $6.11 per diluted share, against $2.2bn in the first quarter and $2.5bn in the second quarter of 2025. Adjusted earnings were $12.0bn, or $6.06 per share. Special items included a $230m asset-sale gain and $86m of pension settlement costs, and foreign-currency effects reduced earnings by $49m. US upstream earned $3.54bn and international upstream $4.64bn.

The company reported an average Brent price of $104 per barrel for the quarter, which is the main context for the jump in earnings, and which is not a level the company controls. Year-to-date reported earnings were $14.3bn, or $7.21 per diluted share. US downstream earnings were $2.4bn, driven by higher refined-product margins and Chevron Phillips Chemical results, and international downstream earnings were $2.5bn, including an asset-sale gain and favourable timing effects.

Production and Hess synergies

Net oil-equivalent production was 4,070 thousand barrels per day, about 20% higher than a year earlier and a US record, with growth coming mainly from legacy Hess assets, the Permian Basin and the Gulf of America. US refinery crude inputs reached a record 1.07 million barrels per day, at more than 97% utilisation. International refinery inputs fell 10% year on year because of Middle East supply disruptions, and curtailments in the Partitioned Zone between Saudi Arabia and Kuwait partly offset international production gains. Chevron said it had achieved $1.5bn of annual run-rate synergies from Hess within a year of closing, 50% above its initial target. Permian capital expenditure was lower than a year earlier, while higher legacy Hess volumes lifted overall capital spending.

Cash flow and balance sheet

Cash flow from operations was $22.6bn in the quarter and $25.1bn for the first half, helped by higher cash distributions from Tengizchevroil. Free cash flow was $18.1bn for the quarter, and capital expenditure was $4.5bn. Total debt fell by a record $8.4bn to $37.1bn at 30 June, and net debt was $28.5bn, a net debt ratio of 13.1%. The company also said it had captured $3bn of run-rate savings from a structural cost programme targeting $3bn to $4bn by the end of 2026.

Realised prices were $70.80 per barrel for US liquids and $96.41 for international liquids. Cash flow from operations excluding working capital was $19.7bn, and adjusted free cash flow was $15.4bn. Net debt compared with $34.5bn at the end of 2025, and net debt to operating cash flow was 0.6 times. US natural gas realised just $0.91 per thousand cubic feet, against $7.84 internationally.

Shareholder returns and the calendar

Chevron declared a quarterly dividend of $1.78 per share, payable on 10 September 2026 to holders of record on 19 August. It paid $3.5bn in dividends and repurchased $3.1bn of shares in the quarter, or $7.0bn and $5.7bn respectively for the first half. The company has scheduled its third-quarter 2026 earnings conference call for Friday 30 October at 11:00 a.m. Eastern Time. The release gives no numerical guidance, and refers to a separate sensitivities and forward-guidance document posted before earnings calls. First-half capital expenditure was reported as $8.6bn in total.

A High-Price Quarter With Risks Tied to the Middle East and Pending Asset Sales

The release lists risks including volatile crude oil, natural gas and refining margins, geopolitical conflict in the Middle East and between Russia and Ukraine, OPEC decisions, sanctions, project delays and operational disruption, environmental regulation and litigation, and the timing of asset sales and Hess benefits. The sale of its stake in Singapore Refining Company and other Asia-Pacific downstream assets is pending and expected to close in 2027. Second-quarter earnings reflect an unusually high oil price, so comparisons with other periods require care.