Chevron (CVX 1.50%), a global integrated energy company with operations spanning oil, gas, and renewables, reported its second quarter fiscal 2025 results on August 1, 2025. The company delivered non-GAAP earnings per share of $1.77 in Q2 2025, surpassing the analyst consensus of $1.73 (non-GAAP) for Q2 2025. GAAP revenue reached $44.4 billion in Q2 2025, also exceeding the estimated $43.9 billion (GAAP) for Q2 2025. Despite exceeding forecasts, both adjusted earnings (non-GAAP) and net income (GAAP) were lower than the same period last year, mainly due to commodity price declines and special items linked to the Hess acquisition. For the quarter, Chevron achieved record production and robust cash generation, and continued to prioritize shareholder returns, even as key profitability metrics faced pressure.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.77 | $1.73 | $2.55 | (30.6 %) |
| Revenue (GAAP) | $44.4 billion | $43.9 billion | N/A | N/A |
| Net Income (GAAP) | $2.5 billion | $4.4 billion | (43.2%) | |
| Adjusted Earnings (Non-GAAP) | $3.1 billion | $4.7 billion | (34.7 %) | |
| Free Cash Flow (Non-GAAP) | $4.9 billion | $2.3 billion | 113.0 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Chevron is a large integrated energy company. It operates major upstream activities, such as exploration and production of oil and natural gas, as well as downstream activities, including refining and marketing petroleum products and chemicals. This integrated model helps Chevron manage changing commodity prices and drive value across the energy supply chain.
The company’s recent focus has centered on four priorities: strengthening its integrated energy operations, driving lower carbon initiatives, expanding its global presence, and investing in technology. Key to its current strategy is adopting lower carbon solutions and new energy sources, expanding production in the Permian Basin, and delivering consistent shareholder returns.
Quarter Review: Operations, Segment Performance, and Special Items
Chevron achieved new records in both U.S. and global oil-equivalent production. Output reached 3,396 thousand barrels of oil equivalent per day in Q2 2025, up 123 thousand barrels per day from a year earlier. The Permian Basin, which produces both oil and natural gas, surpassed the 1 million barrels of oil equivalent per day mark for the first time. Permian Basin production increased by 14%. This region is critical as it offers short-cycle projects, allowing Chevron to respond efficiently to market demand shifts.
Upstream operations, focused on oil and gas extraction, reported earnings of $2.73 billion in Q2 2025, a decrease from $4.47 billion (GAAP) in Q2 2024. U.S. Upstream realized a higher production rate, with Gulf of America output up 22% in Q2 2025. However, lower crude prices significantly impacted profitability. The average realized price for liquids was $47.77 per barrel in Q2 2025, down from $59.85 in Q2 2024. International Upstream production decreased slightly in Q2 2025 due to asset sales in Canada and Congo, partially offset by increased output in Kazakhstan following a successful ramp-up of TCO’s Future Growth Project.
Downstream, which covers refining and the sale of finished products like gasoline and diesel, recorded earnings of $737 million in Q2 2025 In the U.S, refinery processing rates rose to 1,051 thousand barrels per day in Q2 2025, reflecting expansion projects and stable operations at major refineries. Margin improvements in product sales helped offset some of the low earnings in oil and gas extraction. The international segment also saw modest gains despite minor declines in refined product sales and some headwinds from foreign currency effects and local tax changes.
The quarter included several notable transactions and one-time items. The acquisition of Hess, which closed in July, brought Chevron access to offshore assets in Guyana and the Bakken region in North Dakota. Special charges totaled $215 million in Q2 2025, tied to the fair value adjustment of Hess shares and pension-related curtailment. A further $348 million reduction in earnings resulted from unfavorable foreign currency movements in Q2 2025. Despite these challenges, Free cash flow was $4.9 billion in Q2 2025, more than doubling from $2.3 billion in Q2 2024, supported by strong operational cash generation of $8.6 billion in Q2 2025, and lower capital expenditures over the period.
Chevron declared a quarterly dividend of $1.71 per share, payable September 10, 2025. This continues its record of regular dividend payments and returns to shareholders. Total shareholder returns in Q2 2025 reached $5.5 billion, including $2.6 billion in share repurchases. This marks the thirteenth consecutive quarter of $5 billion or more in shareholder distributions as of Q2 2025.
Business Portfolio, Products, and Ongoing Initiatives
Chevron’s product portfolio covers crude oil, natural gas, refined petroleum products, and specialty chemicals. Notably, its operations span upstream projects (exploration and production), downstream facilities (refining and marketing), renewables, and new energy ventures.
In the upstream segment, the company’s evolving mix includes investments in conventional resources and renewable energy. The Permian Basin stands out for its flexibility and scale, while major international projects in Kazakhstan and deepwater Gulf of America contribute to steady, low-decline output. The newly completed acquisition of Hess adds high-quality reserves and positions Chevron for broader international growth, particularly in offshore Guyana.
On the downstream side, Chevron has invested in refinery expansions, such as the Pasadena facility, to boost processing capacity and capture synergies between its different sites. For example, the refinery can now process more oil and feed more finished products into key U.S. markets. This integration enhances flexibility and margin capture at Gulf Coast refineries.
The company’s lower carbon business made key advances this quarter. The Geismar renewable diesel plant increased capacity to 22,000 barrels per day in Q2 2025. Chevron also entered the U.S. lithium sector, acquiring 125,000 net acres for lithium extraction. Long-term contracts now support up to 7 million tonnes per year of U.S. Gulf Coast liquefied natural gas (LNG) export capacity. These moves support Chevron's efforts to diversify and lower the carbon intensity of its products.
Financial Outlook and What to Watch
Chevron reported $3.7 billion in capital expenditures in Q2 2025, with $7.6 billion spent year-to-date (YTD 2025), both down from YTD 2024. Leadership expects to keep annual buybacks within the $10 to $20 billion range, adjusted for market conditions.
Total debt was $29.5 billion as of June 30, 2025 (GAAP), and Net debt ratio climbed to 14.8% as of June 30, 2025, reflecting cash outflows linked to completing the Hess transaction. Free cash flow improvements and record production may help offset these balance sheet pressures if oil prices remain stable and project execution continues at pace.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
