01—Abstract
Summary
Summary of the 8-K filed September 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Chevron Corporation (CVX) has filed an 8-K report disclosing preliminary estimates that could impact its third quarter 2025 financial results.
The most significant factor highlighted is the estimated impact of the Hess Corporation acquisition, which is projected to result in an after-tax loss of $200 million to $400 milliona for the quarter. However, when adjusted to exclude severance and other transaction-related costs, the Hess acquisition is expected to contribute positively, with adjusted earnings estimated between $50 million and $150 million. Beyond the Hess acquisition, Chevron also provided other financial guidance for the third quarter.
This includes an estimated $1.0 billion to $1.25 billionb in capital expenditures and proceeds and deposits of $410 million related to asset sales, specifically the Malaysia/Thailand JDA asset sale. The company anticipates approximately half of the severance and transaction costs related to Hess will be incurred in Q3 2025, with the remainder spread over the next 12 months. Investors should note that this information is preliminary and has not been reviewed by independent auditors, with final results expected around October 31, 2025.
02—Key points
Key Highlights
- Estimated Q3 2025 loss from Hess acquisition: $(200) - $(400) million (after-tax).
- Adjusted Q3 2025 earnings from Hess acquisition: $50 - $150 million (after-tax), excluding transaction costs.
- Severance and other transaction costs for Hess acquisition are estimated at $(350) - $(450) million (after-tax).
- Q3 2025 capital expenditures projected to be between $1.0 and $1.25 billion.
- Proceeds of $410 million expected from the Malaysia/Thailand JDA asset sale in Q3 2025.
- Anticipated working capital outflow of $0.5 to $1.5 billion in Q3 2025.
- Estimated 2 billion shares outstanding as of September 30, 2025, and approximately 1.95 billion weighted average shares outstanding for Q3 2025.
03—Questions
Frequently Asked Questions
What is the expected financial impact of the Hess acquisition on Chevron's Q3 2025 earnings?
Chevron estimates a GAAP after-tax loss of $200 million to $400 million for the third quarter of 2025 related to the Hess acquisition. However, when adjusted to exclude severance and other transaction costs, the company expects positive adjusted earnings of $50 million to $150 million from Hess in Q3 2025.
When will the full financial impact of the Hess acquisition, including transaction costs, be realized?
Approximately half of the cash outflows for severance and other transaction costs related to the Hess acquisition are expected in the third quarter of 2025, with the remainder anticipated over the next 12 months. The total estimated after-tax severance and transaction costs are between $350 million and $450 million.
What are the key guidance figures provided for Q3 2025 beyond the Hess acquisition?
Chevron projects capital expenditures to be between $1.0 billion and $1.25 billion for Q3 2025. Additionally, the company expects proceeds of $410 million from the Malaysia/Thailand JDA asset sale. A working capital outflow of $0.5 to $1.5 billion is also anticipated for the quarter.
Is the information in this 8-K filing final and audited?
No, the preliminary financial information presented in this 8-K is an estimate based on information available to management as of the filing date. It has not been reviewed by Chevron's independent registered accounting firm and is subject to adjustments and changes pending the finalization of the company's financial reporting process. Final results are expected around October 31, 2025.
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