01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Chevron Corporation reported a net income attributable to Chevron of $3.5 billiona ($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 billionb, 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.
02—Key points
Key Highlights
- Net income attributable to Chevron Corporation decreased to $3.5 billion in Q1 2025 from $5.5 billion in Q1 2024.
- Diluted earnings per share fell to $2.00 in Q1 2025 from $2.97 in Q1 2024.
- Upstream segment earnings decreased significantly due to lower liftings, reduced affiliate earnings, and lower commodity realizations.
- Downstream segment earnings were also lower, impacted by reduced refined product margins and a legal reserve.
- Operating cash flow remained strong at $5.2 billion, though lower than the prior year's $6.8 billion.
- Capital expenditures were $3.9 billion, a slight decrease from the prior year, with a focus on U.S. upstream and power solutions.
- The company paid $3.0 billion in dividends and repurchased $3.9 billion of common stock in the quarter, underscoring its commitment to shareholder returns.
- Progress continues on the proposed acquisition of Hess Corporation, with Chevron acquiring a stake and managing regulatory reviews and arbitration.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $46.10B$46.58B | −1.0% |
| Cost of Revenue | $28.61B$27.74B | +3.1% |
| Gross Profit | $17.49B$18.84B | −7.2% |
| SG&A Expenses | $1.22B$1.01B | +20.9% |
| Operating Expenses | $42.03B$40.79B | +3.0% |
| Interest Expense | $212.00M$118.00M | +79.7% |
| Net Income | $3.50B$5.50B | −36.4% |
| EPS (Basic) | $2.01$2.99 | −32.8% |
| EPS (Diluted) | $2.00$2.97 | −32.7% |
| Shares Outstanding (Basic) | 1.74B1.84B | −5.3% |
| Shares Outstanding (Diluted) | 1.75B1.85B | −5.3% |
05—Questions
Frequently Asked Questions
What is the main driver behind the decrease in Chevron's net income for the first quarter of 2025 compared to the same period in 2024?
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.
How did Chevron's capital expenditure and cash flow from operations perform in the first quarter?
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.
What is the status of the proposed acquisition of Hess Corporation?
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.
How is Chevron addressing its commitment to shareholder returns?
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.
06—Continue