Chevron Earnings Climb to $12.1 Billion on Production Growth
The energy giant reported a quarterly profit of $12.1 billion, up from $2.49 billion a year earlier.
Chevron (CVX), the integrated energy company, reported earnings of $12.1 billion for the second quarter of 2026. The result followed a period of significant scale expansion and higher commodity prices, compared to $2.49 billion in the second quarter of 2025.
Growth was driven by a 20% year-over-year increase in worldwide production, with net oil-equivalent production rising to 4,070 MBOED from 3,396 MBOED. The gain was attributed to the Hess acquisition and growth in the Permian Basin and Gulf of Mexico. U.S. upstream net oil-equivalent production reached a quarterly record of 2,077 MBOED.
International upstream production increased by 292,000 barrels per day year-over-year, though Middle East conflict curtailments in the Partitioned Zone partially offset those gains. In the downstream sector, U.S. refinery crude unit throughput hit a record 1.07 million barrels per day, with utilization rising 2% over the prior year to 97%.
Refined product sales fell 4% in U.S. downstream and 13% in international downstream. Lower gasoline and diesel demand alongside Middle East supply disruptions were the primary causes for the decline.
Cash flow from operations rose to $22.6 billion, up from $8.6 billion in the second quarter of 2025 and $2.5 billion in the first quarter of 2026. Return on Capital Employed expanded to 21.4%, compared to 6.2% in the second quarter of 2025 and 4.5% in the first quarter of 2026.
Capital expenditures increased to $4.5 billion from $3.7 billion a year earlier, driven by spending on legacy Hess assets. Despite the higher spend, the company reduced total debt by $8.4 billion during the quarter. Chevron also reached its target of $3 billion in annual run-rate structural cost reductions six months early.
Synergies from the Hess acquisition reached an annual run-rate of $1.5 billion, exceeding the initial target by 50%. The company also signed a 20-year power purchase agreement with Microsoft to provide 2.67 gigawatts of behind-the-meter power for a West Texas data center.
Chevron entered agreements with the Government of Iraq for potential participation in the Nasiriyah and West Qurna 2 oilfield developments. Additionally, the company signed an agreement to sell a 50% interest in the Singapore Refining Company and other downstream assets across Vietnam, Australia, Indonesia, the Philippines, and Malaysia, with an expected close in 2027.