Chevron (CVX) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 earnings of $12.1 billion ($6.11/share), with adjusted earnings of $12.0 billion ($6.06/share), reflecting strong operational execution, disciplined investment, and record U.S. upstream and refinery throughput.

• Global upstream production increased over 5% quarter-over-quarter, with worldwide production up 20% year-over-year, driven by the Hess acquisition and growth in the Permian Basin and Gulf of America.

• Achieved $3 billion in annual structural cost reductions six months ahead of target, with over 70% from efficiency gains.

• Realized $1.5 billion in Hess acquisition synergies, 50% above initial targets and ahead of schedule, with Hess assets generating strong free cash flow.

• Advanced major power project (Kilby) with a 20-year, 2.67 GW PPA signed with Microsoft, targeting mid-teens returns and long-term contracted cash flows.

Financial highlights

• Q2 2026 reported earnings were $12.1 billion ($6.11/share); adjusted earnings were $12.0 billion ($6.06/share).

• Cash flow from operations reached $22.6 billion; adjusted free cash flow was $15.4 billion.

• Reduced debt by over $8 billion in Q2, further strengthening the balance sheet.

• Organic CapEx was $4.4 billion for the quarter; total CapEx was $4.5 billion.

• Net debt to CFFO improved to 0.6x at quarter-end.

Outlook and guidance

• Expect to finish 2026 at the lower end of $18–$19 billion CapEx guidance.

• Confident in 2030 objectives: 2–3% annual production growth, >10% annual adjusted free cash flow growth, and >3% improvement in ROCE at flat commodity prices.

• 3Q26 upstream turnarounds and downtime expected to reduce production by 150–200 MBOED; downstream downtime projected to impact earnings by $175–$225 million.

• Share repurchases guided at $2.5–$3.0 billion; affiliate distributions at $1.5–$1.7 billion.

• Developing robust growth options across regions and asset classes, including new exploration agreements in the Mediterranean, Africa, and Middle East.