Chevron (CVX) Announces First Quarter 2025 Earnings Results

Chevron Corporation (CVX) today announced its financial results for the recent quarter. The company reported a quarterly revenue of $47.61 billion, which fell short of the estimated $48.25 billion, marking a miss in revenue expectations. Chevron’s earnings per share (EPS) met expectations, aligning with the estimated EPS of $2.16. Despite the revenue miss, Chevron’s performance reflects its ongoing efforts in navigating the challenging energy market landscape.

Key Highlights:

• Chevron reported first-quarter 2025 earnings of $3.5 billion, down from $5.5 billion in the same quarter of 2024.
• Adjusted earnings for the first quarter of 2025 were $3.8 billion, compared to $5.4 billion in the first quarter of 2024.
• The company returned $6.9 billion in cash to shareholders and acquired $2.2 billion of Hess shares.
• Production started from the Ballymore field in the Gulf of America in April 2025.
• Chevron’s Permian Basin production increased, and the company sold a majority interest in its East Texas gas assets.
• The company aims to deliver industry-leading free cash flow growth by 2026.
• Chevron’s Board of Directors declared a quarterly dividend of $1.71 per share.
• Chevron completed the sale of a 70% interest in its East Texas gas assets to TG Natural Resources LLC for $525 million.
• The company achieved production milestones in Kazakhstan and the United States, including the completion of the Future Growth Project and increased production in the Permian Basin.
• Chevron’s total revenues and other income for the quarter were $47.6 billion, a decrease from $48.7 billion in the previous year.
• Total costs and other deductions amounted to $42.0 billion, up from $40.8 billion in the previous year.
• Chevron’s total assets were reported at $256.4 billion as of March 31, 2025, with total debt increasing to $29.7 billion from $24.5 billion at the end of 2024.

Summary:

Chevron Corporation’s financial performance for the first quarter of 2025 showed a decline in net income to $3.5 billion from $5.5 billion in the same period of 2024. This decrease was attributed to lower income from upstream and downstream equity affiliates, reduced margins on refined product sales, and unfavorable tax and foreign exchange effects. Despite these challenges, Chevron returned $6.9 billion in cash to shareholders and acquired $2.2 billion of Hess shares, reflecting confidence in the pending acquisition of Hess. The company also commenced production from the Ballymore field in the Gulf of America, which is expected to contribute significantly to Chevron’s production targets, aligning with the company’s goal to produce 300,000 net barrels per day of oil equivalent from the Gulf by 2026. Chevron’s chairman and CEO, Mike Wirth, emphasized the company’s strong execution and progress towards delivering superior shareholder value, highlighting the company’s resilient portfolio, strong balance sheet, and focus on capital and cost discipline as key drivers for future growth.

In addition to its financial performance, Chevron completed the sale of a 70% interest in its East Texas gas assets to TG Natural Resources LLC for $525 million, as part of its ongoing efforts to optimize its portfolio and focus on core assets. The transaction included $75 million paid in cash and $450 million as a capital carry to fund Haynesville development. Chevron’s total revenues and other income for the quarter were $47.6 billion, a decrease from $48.7 billion in the previous year, while total costs and other deductions amounted to $42.0 billion, up from $40.8 billion. The company’s total assets were reported at $256.4 billion as of March 31, 2025, with total debt increasing to $29.7 billion from $24.5 billion at the end of 2024. Despite the challenges, Chevron continues to focus on its core operations, with a significant portion of its earnings derived from its upstream activities, and remains committed to managing its financial health amidst fluctuating market conditions.

Chevron Corporation (CVX) has experienced a turbulent period in the stock market, with its price declining by 2.02% over the past week and a significant 19.14% drop in the last month alone. Over the past year, the stock has seen a total decrease of 10.95%, reflecting broader challenges in the energy sector. Despite these price declines, Chevron’s price-to-earnings ratio stands at 14.22, suggesting that the stock is still reasonably valued compared to its earnings. However, the company’s fundamentals reveal some concerning trends, with a two-year compound annual growth rate (CAGR) for earnings per share (EPS) at a negative 26.94% and revenue CAGR at negative 8.51%. Additionally, the free cash flow has plummeted by 36.22% over the same period, indicating potential liquidity issues. On a more positive note, Chevron maintains a net profit margin of 9.03% and a return on invested capital of 8.11%, which may provide some cushion against the ongoing market volatility. These metrics suggest that while Chevron is facing headwinds, it still retains some operational efficiency and profitability.

Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.