Chevron (CVX) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 net income of $3.5B ($2.00/share), down from $5.5B ($2.97/share) in Q1 2024; adjusted earnings were $3.8B ($2.18/share), with strong cash flow and disciplined capital allocation.

• Returned $6.9B to shareholders via $3.9B in share repurchases and $3.0B in dividends; acquired 4.99% of Hess shares, with merger completion pending.

• Advanced major project startups, including Ballymore in the Gulf of America and TCO, and completed several asset divestitures.

• Maintained focus on cost and capital discipline, targeting $2–3B in structural cost savings by end of 2026.

• Portfolio resilience supported by asset sales, new ventures, and ongoing organizational efficiency initiatives.

Financial highlights

• Q1 2025 reported earnings: $3.5B ($2.00/share); adjusted earnings: $3.8B ($2.18/share); revenue was $46.1B.

• Cash flow from operations was $5.2B, down from $6.8B year-over-year; free cash flow was $1.3B.

• CapEx was $3.9B, with organic CapEx at $3.5B; affiliate CapEx declined.

• Net oil-equivalent production was 3,353 MBOED, stable year-over-year as asset sales offset growth in TCO, Permian, and Gulf of America.

• Net debt ratio was 14.4% at March 31, 2025; total debt and finance lease liabilities rose to $29.7B.

Outlook and guidance

• Buyback guidance remains $10–20B annually, with Q2 repurchases expected at $2.5–$3B.

• Project startups and cost reduction programs expected to deliver $9B incremental free cash flow in 2026.

• Management targets $2–3B in structural cost reductions by 2026 and $10–15B in asset sales through 2028.

• Permian production growth to resume in Q2 with higher frac activity; working capital unwind of $1B expected over the year.

• Hess acquisition completion remains subject to regulatory and arbitration outcomes.