10-QPeriod: Q1 FY2025

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 8, 2025For Securities:CVX

Summary

Chevron Corporation reported a net income attributable to Chevron of $3.5 billion ($2.00 per diluted share) for the first quarter of 2025, a decrease from $5.5 billion ($2.97 per diluted share) in the first quarter of 2024. This decline was primarily driven by lower earnings in both the Upstream and Downstream segments. Upstream earnings decreased due to lower liftings, reduced affiliate earnings, and lower realizations, while Downstream earnings were impacted by lower refined product margins and a legal reserve. Despite the decrease in earnings, the company's financial position remains robust. Cash provided by operating activities was $5.2 billion, and capital expenditures totaled $3.9 billion. Chevron also continued its commitment to shareholder returns, paying $3.0 billion in dividends and repurchasing $3.9 billion of its stock in the quarter. The company also highlighted progress on strategic initiatives, including its planned acquisition of Hess Corporation and ongoing efforts to achieve structural cost reductions.

Financial Highlights

46 data points
Beta

Revenue

$46.10B

37.9% Gross Margin

Net Income

$3.50B

7.6% Net Margin

EPS (Diluted)

$2.00

Total Assets

$256.40B

Cash & Equivalents

$6.17B

Free Cash Flow

$5.19B

Financial Statements
Beta
Revenue$46.10B
Cost of Revenue$28.61B
Gross Profit$17.49B
SG&A Expenses$1.22B
Operating Expenses$42.03B
Interest Expense$212.00M
Net Income$3.50B
EPS (Basic)$2.01
EPS (Diluted)$2.00
Shares Outstanding (Basic)1.74B
Shares Outstanding (Diluted)1.75B

Key Highlights

  • 1Net income attributable to Chevron Corporation decreased to $3.5 billion in Q1 2025 from $5.5 billion in Q1 2024.
  • 2Diluted earnings per share fell to $2.00 in Q1 2025 from $2.97 in Q1 2024.
  • 3Upstream segment earnings decreased significantly due to lower liftings, reduced affiliate earnings, and lower commodity realizations.
  • 4Downstream segment earnings were also lower, impacted by reduced refined product margins and a legal reserve.
  • 5Operating cash flow remained strong at $5.2 billion, though lower than the prior year's $6.8 billion.
  • 6Capital expenditures were $3.9 billion, a slight decrease from the prior year, with a focus on U.S. upstream and power solutions.
  • 7The company paid $3.0 billion in dividends and repurchased $3.9 billion of common stock in the quarter, underscoring its commitment to shareholder returns.
  • 8Progress continues on the proposed acquisition of Hess Corporation, with Chevron acquiring a stake and managing regulatory reviews and arbitration.

Frequently Asked Questions

The primary driver for the decrease in net income was lower earnings from both the Upstream and Downstream segments. Specifically, the Upstream segment saw reduced earnings due to lower liftings, lower affiliate earnings from entities like TCO, and decreased commodity realizations. The Downstream segment's profitability was negatively impacted by lower margins on refined product sales and the establishment of a legal reserve.

Chevron generated $5.2 billion in cash from operating activities during the first quarter of 2025, a decrease from $6.8 billion in the prior year. Capital expenditures totaled $3.9 billion, slightly down from $4.1 billion in the first quarter of 2024, with investments continuing in the U.S. upstream and expanding into power solutions for data centers.

Chevron continues to pursue the acquisition of Hess Corporation. In the first quarter, Chevron acquired approximately 4.99% of Hess's common stock, signaling confidence in the deal's completion. However, the acquisition remains subject to certain conditions, including regulatory approvals and ongoing arbitration related to pre-emptive rights in Guyana. Chevron is actively managing these processes and anticipates further developments.

Chevron demonstrated its commitment to shareholder returns by paying $3.0 billion in common stock dividends during the first quarter of 2025 and repurchasing $3.9 billion of its own stock. The company also announced its intention to repurchase between $2.5 and $3.0 billion in the second quarter of 2025.