Chevron records highest quarterly profit in six years, beating analyst estimates
Chevron records highest quarterly profit in six years, beating analyst estimates
By Sheila Dang Fri, July 31, 2026 at 9:28 PM UTC
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By Sheila Dang
HOUSTON, July 31 (Reuters) - Chevron surpassed analyst estimates for second-quarter earnings on Friday, reporting its highest quarterly profit in at least six years as the Iran war disrupts world energy markets, boosting profits for the biggest oil companies.
Adjusted earnings of $12 billion, or $6.06 per share, beat the average analyst estimate of $5.56 per share, according to data compiled by LSEG. Chevron shares closed on Friday up 2% at $196.83.
The results mirrored those of European oil majors TotalEnergies and Shell, which also posted banner second-quarter profits buoyed by higher oil prices. ExxonMobil missed analyst estimates for quarterly profit despite earnings hitting a four-year high.
"Amid all the geopolitical uncertainty and market volatility that's still upon us, we continue to deliver the reliable energy that the world has needed," Chevron Chief Financial Officer Eimear Bonner said in an interview.
The second-largest U.S. oil major has less Middle East production than its peers, allowing it to reap the benefits of higher oil prices without the large output disruptions that riled rivals such as ExxonMobil and TotalEnergies.
Still, Chevron CEO Mike Wirth said that the ongoing conflict would continue to put global energy supplies under stress.
"Every day that goes by, the situation gets more difficult," Wirth told CNBC.
Earnings from upstream were $8.2 billion, up 200% from the previous year. Benchmark Brent crude prices were 23% higher during the second quarter than the year's first three months, as shipping through the Strait of Hormuz remained limited.
Production totaled 4 million barrels of oil equivalent per day during the second quarter, up from 3.85 million boepd in the first quarter. U.S. output, focused on the Permian Basin and offshore Gulf region, hit a new record of 2.08 million boepd.
Chevron said it expects to spend 25% less per barrel in U.S. shale production this year than in 2025, due to efficiencies.
Downstream earnings also reached their highest since the beginning of the decade at $4.9 billion, with record U.S. refinery throughput. Low fuel stockpiles globally and conflict in the Middle East pushed refining margins to record levels.
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Chevron's earnings beat was primarily driven by the higher-than-expected downstream earnings, RBC Capital Markets analyst Biraj Borkhataria wrote in a note, adding that the quarterly report showed "robust operational performance and strategic consistency."
The skyrocketing profits could draw more criticism from U.S. President Donald Trump, who last month accused oil companies of price "gouging" and urged them to do more to lower gasoline prices.
CHEVRON KEEPS DIVIDENDS, BUYBACKS STEADY
Chevron repurchased $3 billion in shares during the second quarter and paid dividends of $3.5 billion that matched those of the previous quarter.
Bonner said the company would maintain its full-year share repurchase target of between $10 billion and $20 billion and focus on strengthening the balance sheet over the long term.
"Because energy is cyclical, our business has to perform in all cycles. We're not changing our plan around a single quarter," Bonner said.
In Venezuela, where the Trump administration is trying to increase U.S. oil company investment, Chevron's joint ventures are now producing about 280,000 barrels per day, Bonner said.
"We're anticipating that we will be able to grow up to 50% between now and the end of 2028," Bonner said during the earnings conference call.
Chevron was evaluating incremental production opportunities that would depend on receiving favorable terms with the Venezuelan government, Bonner added.
In Kazakhstan, the CPC pipeline that is a major crude export route to the Black Sea is currently flowing and ships have been loading at the terminal this week, Wirth said during the earnings call with analysts. The company operates a joint venture that develops a massive oilfield in Kazakhstan.
Loadings at the pipeline have been suspended several times this month after drone attacks on the tankers coming to load oil at the Black Sea terminal, raising risks for shipowners.
Chevron also said on Friday it has achieved deal synergies of $1.5 billion from last year's acquisition of Hess, with the milestone reached six months ahead of schedule and above the initial $1 billion synergy target set when the deal closed.
(Reporting by Sheila Dang in Houston; Editing by Nathan Crooks, Louise Heavens, Will Dunham and David Gregorio)
Source: “AOL Money”
