CHEVRON CORP

Chevron Corporation is a global energy company that manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in integrated energy and chemicals operations. The petroleum industry operations and profitability are influenced by many factors, including prices for crude oil, natural gas, liquefied natural gas, petroleum products and petrochemicals, which are generally determined by supply and demand. Production levels from the members of the Organization of Petroleum Exporting Countries, Russia and the United States are major factors in determining worldwide supply, while demand is largely driven by the conditions of local, national and global economies, although weather patterns, the pace of energy transition and taxation relative to other energy sources also play a significant part. Strong competition exists in all sectors of the petroleum and petrochemical industries in supplying the energy, fuel and chemical needs of industry and individual consumers.

In the upstream business, Chevron competes with fully integrated, major global petroleum companies, as well as independent and national petroleum companies, for the acquisition of crude oil and natural gas leases and other properties and for the equipment and labor required to develop and operate those properties. In its downstream business, Chevron competes with fully integrated, major petroleum companies, as well as independent refining and marketing, transportation and chemicals entities and national petroleum companies in the refining, manufacturing, sale and marketing of fuels, lubricants, additives and petrochemicals. Chevron's strategy is to leverage its strengths to safely deliver lower carbon energy to a growing world, with the objective to safely deliver higher returns, lower carbon and superior shareholder value in any business environment.

Chevron generates revenue through upstream operations, which consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of refining crude oil into petroleum products; marketing of 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. The company also has a new energies organization focused on developing new businesses including additional fuel solutions utilizing hydrogen and its derivatives such as ammonia, carbon emissions management through carbon capture and storage and offsets, and power generation for data centers.

The upstream segment is managed by the Oil, Products and Gas organization and includes activities in North America, South America, Europe, Africa, Asia and Australia. In the United States, upstream activities are primarily located in Texas, New Mexico, Colorado, North Dakota, California and the Gulf of America, with Chevron being one of the largest producers in the Permian Basin, the largest oil and natural gas producer in Colorado, and the largest acreage holder in the Gulf of America following its acquisition of Hess. Internationally, Chevron has significant upstream operations in Australia, where it is the largest producer of LNG, as well as in Kazakhstan through its 50 percent interest in Tengizchevroil LLP, in Guyana through a 30 percent nonoperated interest in the Stabroek Block, and in Israel through a 39.7 percent-owned and operated interest in the Leviathan Field and a 25 percent-owned and operated interest in the Tamar gas field.

The downstream segment includes refining operations with a network capable of processing 1.8 million barrels per day at the end of 2025, with refineries in the United States at Pascagoula, Mississippi; El Segundo, California; Richmond, California; Pasadena, Texas; and Salt Lake City, Utah, as well as international refineries in Thailand, South Korea and Singapore. The company markets petroleum products under the principal brands of Chevron, Texaco and Caltex throughout many parts of the world, supplying directly or through retailers and marketers approximately 8,600 Chevron- and Texaco-branded service stations in the United States and approximately 5,200 branded service stations outside the United States. The chemicals operations include Chevron Oronite Company, which develops, manufactures and markets performance additives for lubricating oils and fuels, and a 50 percent interest in Chevron Phillips Chemical Company LLC, which produces olefins, polyolefins and alpha olefins.

In 2025, Chevron completed the acquisition of Hess Corporation in July 2025, creating a combined company with a premier upstream portfolio and achieving the initial run-rate synergy target of $1 billion. The company also started production at the Future Growth Project at Tengizchevroil in Kazakhstan, which increased crude oil production by 260,000 barrels per day with a total gross output of one million barrels of oil-equivalent per day. In the United States, Chevron started and ramped up production at the Anchor, Ballymore, Stampede, and Whale fields in the deepwater Gulf of America, grew production in the Permian Basin by more than 10 percent with lower Capex compared to the prior year reaching one million barrels of oil equivalent per day, and started production from the Geismar renewable diesel plant in Louisiana after completing an expansion that increased capacity from 7,000 to 22,000 barrels per day.

Net income attributable to Chevron Corporation for 2025 was $12.299 billion ¹, compared to $17.661 billion ² in 2024 and $21.369 billion ³ in 2023. Sales and other operating revenues were $184.432 billion ⁴ in 2025, compared to $193.414 billion ⁵ in 2024 and $196.913 billion ⁶ in 2023. Diluted earnings per share were $6.63 ⁷ in 2025, compared to $9.72 ⁸ in 2024 and $11.36 ⁹ in 2023. Cash provided by operating activities was $33.939 billion ¹⁰ in 2025, compared to $31.492 billion ¹¹ in 2024.

The company estimates its average worldwide oil-equivalent production in 2026 to increase 7 to 10 percent over 2025, assuming a Brent crude oil price of $60 per barrel and excluding the impact of asset sales, and this includes a full-year contribution from Hess assets. The company estimates that 2026 organic capex will range from $18 to $19 billion ¹², with upstream Capex projected at $17 billion ¹³, including nearly $6 billion for U.S. shale and tight assets in the Permian, DJ and Bakken basins, and about $7 billion for global offshore developments primarily supporting growth in Guyana, Eastern Mediterranean and Gulf of America. Downstream Capex is expected to be around $1 billion ¹⁴, with nearly three-fourths allocated to the U.S. operations, and about $1 billion of total Capex, which is included within upstream and downstream budgets, is dedicated to lowering the carbon intensity of operations and growing new energies businesses. Corporate and other Capex is projected to be about $0.6 billion ¹⁵.

In the Permian Basin, Chevron continues to develop its advantaged portfolio of more than 1,750,000 net acres in the Delaware and Midland basins, and in 2025 production reached one million barrels of net oil-equivalent per day. In Guyana, Chevron has a 30 percent nonoperated interest in the Stabroek Block, and it is expected that by 2030, eight FPSOs will be in production with an aggregate expected production capacity of approximately 1.7 million gross barrels of oil per day, with the fifth development Uaru expected in 2026, the sixth development Whiptail expected in 2027, and the seventh development Hammerhead expected in 2029. In Israel, Chevron reached final investment decision in early 2026 to invest in the Leviathan Expansion Phase 1 Project that is expected to increase Leviathan's upstream production capacity to 2.1 billion cubic feet per day, and the Nitzana natural gas pipeline to transport gas from both Leviathan and Tamar fields to Egypt is scheduled for completion in 2028 with a pipeline capacity expected to reach 0.6 billion cubic feet per day.

In Australia, final investment decision was reached on the Gorgon Stage 3 Project to develop additional backfill fields, Geryon and Eurytion, with first gas expected in 2029, and progress on the Jansz-Io Compression project continued during 2025 with first gas expected in 2028. In Kazakhstan, TCO completed the Future Growth Project which increased crude oil production by 260,000 barrels per day with a total gross output of one million barrels of oil-equivalent per day, and the Karachaganak Expansion Project Stage 1A facility scope was fully completed with Stage 1B development expected to complete in the second half of 2026. In the United States, Chevron advanced work on its first power project for data centers, which is expected to be supplied with gas from the Permian Basin in West Texas, and acquired approximately 135,000 net acres in the Smackover Formation in Northeast Texas and Southwest Arkansas for the purpose of exploring lithium development.

The company has announced plans to achieve $3-4 billion in structural cost reductions by the end of 2026, and in 2025 the company delivered $1.5 billion in structural cost savings, with $2 billion achieved in the annual run rate. These cost savings will largely come from optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including expanded use of global capability centers. The company is also targeting $1-2 billion in annual asset sale proceeds through 2030, and from 2024 through January 2026 the company has generated approximately $9 billion of asset sales proceeds.

The company is actively managing its contracting, procurement and supply chain activities to effectively manage costs and facilitate supply chain resiliency and continuity in support of the company's operational goals. In the United States, cost pressures for onshore drilling and completion equipment continue to ease, and lead times for key capital equipment remain long due to strong demand levels. Chevron has addressed equipment cost increases and long lead times by partnering with suppliers on demand planning, volume commitments, standardization, and scope optimization. The offshore market remains competitive for vessels and subsea equipment.

The company repurchased $12.1 billion ¹⁶ of its common stock in 2025 under its stock repurchase program, and as of December 31, 2025, the company had purchased a total of 250.8 million shares for $38.5 billion excluding excise taxes, resulting in $36.5 billion ¹⁷ remaining under the 2023 Program. Chevron expects share repurchases in the first quarter of 2026 to be between $2.5-$3.0 billion ¹⁸. The 2025 annual dividend was $6.84 ¹⁹ per share, making 2025 the 38th consecutive year that the company increased its annual per share dividend payout, and in January 2026 the Board of Directors increased its quarterly dividend by $0.07 per share, approximately four percent, to $1.78 per share payable in March 2026. Affiliate Capex is expected to range between $1.3 to $1.7 billion ²⁰ in 2026, with nearly half of this amount allocated to CPChem's two major integrated polymer projects while TCO's budget accounts for roughly one-fourth.

The company faces headwinds from changing commodity prices, as the most significant factor affecting results of operations for the upstream segment is the price of crude oil, which is determined in global markets outside of the company's control. The Brent price averaged $69 per barrel for the full-year 2025, compared to $81 in 2024, and the WTI price averaged $65 per barrel for the full-year 2025, compared to $76 in 2024. The company also faces risks from geopolitical instability, including the conflict between Israel and various regional adversaries which has not significantly impacted the company's operations, and current geopolitical developments relating to Venezuela which could have an impact on the company's operations in Venezuela. Additionally, the company faces risks from climate change-related legislation, regulation, and other government actions that could reduce demand for Chevron's hydrocarbon and other products and increase operational costs.

The company faces constraints from the potential for additional sanctions and other trade laws, restrictions and regulations that could lead to disruption in the ability to produce, transport and/or export crude in the region around Russia, and an adverse event or incident affecting Caspian Pipeline Consortium operations, which CPC has experienced from time to time such as recent drone attacks, could have a negative impact on the Tengiz field and the company's future results of operations and financial position. The company also faces uncertainty from the imposition of various changing tariffs on imports from U.S. trade partners, with the tariff impact in 2025 being less than one percent of the company's third party spend and not material to the company's financial results, but with significant uncertainty as to the duration and magnitude of any future tariffs.

Chevron is exposed to the effects of changing commodity prices, as the most significant factor affecting results of operations are the prices of crude oil, natural gas, and natural gas liquids, which can be influenced by general economic conditions, industry production and inventory levels, and production quotas or other actions that might be imposed by OPEC or other producers. The company's operations could be disrupted by natural or human causes beyond its control, including risks from hurricanes, severe storms, floods, war or other military conflicts such as the conflict between Russia and Ukraine and in the Middle East, and cyber threats. The company faces risks from climate change-related legislation, regulation, and other government actions that could reduce demand for Chevron's hydrocarbon products and increase operational costs, with the company noting that it is not on track to achieve its aspiration of net zero for upstream production Scope 1 and 2 GHG emissions on an equity basis by 2050. The acquisition of Hess may cause Chevron's financial results to differ from expectations, and the company may not achieve the anticipated benefits including the anticipated run-rate cost synergies, estimated five-year production and free cash flow growth rates. The company also faces risks from political instability and significant changes in the legal and regulatory environment, including the potential for governments to impose additional taxes, tariffs, royalties, fees, penalties or other costs, with the company noting that governments in various jurisdictions including California and Australia have announced, proposed, or implemented windfall profit taxes for companies operating in the energy and oil and gas sectors.

Management's message emphasizes Chevron's strategy to leverage its strengths to safely deliver lower carbon energy to a growing world, with the objective to safely deliver higher returns, lower carbon and superior shareholder value in any business environment. The company estimates its average worldwide oil-equivalent production in 2026 to increase 7 to 10 percent over 2025, assuming a Brent crude oil price of $60 per barrel and excluding the impact of asset sales ²¹, and estimates that 2026 organic capex will range from $18 to $19 billion ²². The three strategic priorities emphasized for the period ahead are growing the oil and gas business, lowering the carbon intensity of operations, and growing new energies businesses, with management noting that the company aims to leverage its capabilities, assets, partnerships and customer relationships to achieve these objectives.