Chevron Corporation
11/05/2026 | Press release | Distributed by Public on 11/05/2026 10:21
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Third Quarter 2026 Compared with Third Quarter 2025
Key Financial Results
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Earnings by Business Segment
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | (Millions of dollars) | ||||||||||||||||||||||
| Upstream | |||||||||||||||||||||||
| United States | $ | 3,293 | $ | 1,282 | $ | 8,946 | $ | 4,558 | |||||||||||||||
| International | 2,405 | 2,020 | 8,843 | 5,229 | |||||||||||||||||||
| Total Upstream | 5,698 | 3,302 | 17,789 | 9,787 | |||||||||||||||||||
| Downstream | |||||||||||||||||||||||
| United States | 3,585 | 638 | 6,192 | 1,145 | |||||||||||||||||||
| International | 1,346 | 499 | 2,790 | 1,054 | |||||||||||||||||||
| Total Downstream | 4,931 | 1,137 | 8,982 | 2,199 | |||||||||||||||||||
| Total Segment Earnings | 10,629 | 4,439 | 26,771 | 11,986 | |||||||||||||||||||
| All Other | (705) | (900) | (2,565) | (2,457) | |||||||||||||||||||
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Net Income (Loss) Attributable to Chevron Corporation (1) (2)
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$ | 9,924 | $ | 3,539 | $ | 24,206 | $ | 9,529 | |||||||||||||||
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(1) Includes foreign currency effects.
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$ | (143) | $ | 147 | $ | (415) | $ | (339) | |||||||||||||||
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(2) Income (loss) net of tax; also referred to as "earnings" in the discussions that follow.
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Net income attributable to Chevron Corporation for third quarter 2026 was $9.9 billion ($5.06 per share - diluted), compared with $3.5 billion ($1.82 per share - diluted) in third quarter 2025. The net income attributable to Chevron Corporation for the first nine months of 2026 was $24.2 billion ($12.26 per share -diluted), compared with $9.5 billion ($5.27 per share - diluted) in the first nine months of 2025.
Upstream earnings in third quarter 2026 were $5.7 billion compared with $3.3 billion in the corresponding 2025 period. The increase was mainly due to higher realizations, partly offset by unfavorable timing effects. Earnings for the first nine months of 2026 were $17.8 billion compared with $9.8 billion a year earlier. The increase was mainly due to higher realizations and sales volumes, partially offset by higher depreciation, depletion and amortization expense and unfavorable timing effects.
Downstream earnings in third quarter 2026 were $4.9 billion compared with $1.1 billion in the corresponding 2025 period. The increase was mainly due to higher margins on refined product sales. Earnings for the first nine months of 2026 were $9.0 billion compared with $2.2 billion a year earlier. The increase was mainly due to higher margins on refined product sales despite unfavorable timing effects.
Refer to "Results of Operations" for additional discussion of results by business segment and "All Other" activities for the third quarter and first nine months of 2026 versus the same periods in 2025.
Business Environment and Outlook
Chevron Corporation3 is a global energy company with direct and indirect subsidiaries and affiliates that conduct substantial business activities in the following countries: Angola, Argentina, Australia, Bangladesh,
3 Incorporated in Delaware in 1926 as Standard Oil Company of California, the company adopted the name Chevron Corporation in 1984 and ChevronTexaco Corporation in 2001. In 2005, ChevronTexaco Corporation changed its name to Chevron Corporation. As used in this report, the term "Chevron" and such terms as "the company," "the corporation," "our," "we," "us" and "its" may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole, but unless stated otherwise they do not include "affiliates" of Chevron - i.e., those companies generally owned 50 percent or less. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
Brazil, Canada, China, Egypt, Equatorial Guinea, Guyana, Israel, Kazakhstan, Malaysia, Nigeria, the Partitioned Zone between Saudi Arabia and Kuwait, the Philippines, Singapore, South Korea, Thailand, the United Kingdom, the United States, and Venezuela.
The company's objective is to safely deliver higher returns, lower carbon and superior shareholder value in any business environment. Earnings of the company depend mostly on the profitability of its upstream business segment. The most significant factor affecting the 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. In the company's downstream business, crude oil is the largest cost component of refined products. Periods of sustained lower commodity prices could result in the impairment or write-off of specific assets in future periods and cause the company to adjust operating expenses, including employee reductions, and capital expenditures, along with other measures intended to improve financial performance.
Some governments, companies, communities and other stakeholders are supporting efforts to address climate change. International initiatives and national, regional and state legislation and regulations that aim to directly or indirectly reduce GHG emissions are in various stages of design, adoption, and implementation. These policies and programs can change the amount of energy consumed, the rate of energy-demand growth, the energy mix, and the relative economics of one fuel versus another. Implementation of jurisdiction-specific policies and programs can be dependent on, and can affect the pace of, technological advancements; the granting of necessary permits by governing authorities; the availability and acceptability of cost-effective, verifiable carbon credits; the availability of suppliers that can meet sustainability-related standards; evolving regulatory requirements affecting ESG standards or disclosures; and evolving standards and regulations for tracking, reporting, disclosing, marketing, and advertising relating to emissions and emissions reductions and removals.
Significant uncertainty remains as to the pace and extent to which a lower carbon future progresses, which is dependent, in part, on substantial advancements and changes in policy, technology, and customer and consumer preferences. The level of expenditure required to comply with new or potential climate change-related laws and regulations, and the amount of additional investments needed in new or existing technology or facilities, such as carbon capture and storage, is difficult to predict with certainty and is expected to vary depending on the actual laws and regulations enacted, available technology options, customer and consumer preferences, the company's activities, and market conditions. Although the future is uncertain, many published outlooks conclude that fossil fuels will remain a significant part of an energy system that increasingly incorporates lower carbon sources of supply for many years to come.
Chevron supports a global approach to governments addressing climate change and continues to take actions to help lower the carbon intensity of its operations while continuing to meet the demand for energy. Chevron believes that broad, market-based mechanisms are the most efficient approach to addressing GHG emissions reductions. Chevron integrates climate change-related issues and the regulatory and other responses to these issues into its strategy and planning, capital investment reviews, and risk management tools and processes, where it believes they are applicable. They are also factored into the company's long-range supply, demand, and energy price forecasts. These forecasts reflect estimates of long-range effects from climate change-related policy actions, such as electric vehicle and renewable fuel penetration, energy efficiency standards, and demand response to oil and natural gas prices.
The company will continue to develop oil and gas resources to meet customers' and consumers' demand for energy. At the same time, Chevron believes that the future of energy is lower carbon. The company will continue to maintain flexibility in its portfolio to be responsive to changes in policy, technology, and customer and consumer preferences. Chevron aims to grow its oil and gas business, lower the carbon intensity of operations and grow new energies businesses. To grow new energies businesses, Chevron plans to leverage the company's capabilities, assets, partnerships and customer relationships. The company's oil and gas business may increase or decrease depending upon market, economic, legislative, and regulatory forces, among other factors.
Chevron's previously disclosed GHG intensity targets through 2028 can be found on pages 36 through 37 of the company's 2025 Annual Report on Form 10-K.
Chevron regularly evaluates its aspirations, targets and goals. The company has changed and/or eliminated some of these aspirations, targets and goals and may continue to do so in the future for various reasons, including market conditions; its strategy or portfolio; and financial, operational, policy, reputational, legal and other factors. The company's ability to achieve any aspiration, target or goal is subject to numerous risks and contingencies, many of which are outside of Chevron's control and persist. Examples of such risks and contingencies include: (1) sufficient and substantial advances in technology, including progress of commercially viable technologies and low- or non-carbon-based energy sources; (2) laws, governmental regulation, policies, and other enabling actions, including those regarding subsidies, tax and other incentives as well as the granting of necessary permits by governing authorities; (3) successful generation, acquisition, retirement and accounting of cost-effective, verifiable carbon offsets from nature-based solutions or carbon capture and storage; (4) the availability of suppliers that can meet sustainability-related standards; (5) evolving regulatory requirements affecting ESG standards or disclosures; (6) evolving standards for tracking and reporting on emissions and emission reductions and removals; (7) customers' and consumers' preferences and use of the company's products or substitute products; and (8) actions taken by the company's competitors. Please refer to the risk factors regarding the company's strategy, aspirations, targets, and disclosures related to environmental, social, and governance matters included on pages 25 through 27 of the company's 2025 Annual Report on Form 10-K.
Income Taxes The effective tax rate for the company can change substantially during periods of significant earnings volatility. This is due to the mix effects that are impacted by both the absolute level of earnings or losses and whether they arise in higher or lower tax rate jurisdictions. As a result, a decline or increase in the effective income tax rate in one period may not be indicative of expected results in future periods. Additional information related to the company's effective income tax rate is included in Note 10 Income Taxes to the Consolidated Financial Statements.
Supply Chain and Inflation Impacts The company actively manages contracting, procurement and supply chain activities to help ensure operational reliability and effective management of third party costs. Third party costs for capital and operating expenses may be subject to external factors beyond the company's control including, but not limited to: geopolitical events, severe weather, civil unrest, delays in construction, global and local supply chain distribution issues, inflation, tariffs or other taxes imposed on goods or services, and market-based prices charged by the industry's material and service providers. Chevron utilizes contracts with various pricing mechanisms, which may result in a lag before the company's costs reflect changes in market trends.
Trends in the costs of goods and services vary by spend category. In the United States, cost pressures for services and select equipment remain elevated, reflecting cross-industry demand and supplier capital discipline. The company addresses cost and supply assurance by partnering with suppliers on demand planning, volume commitments, standardization and scope optimization. The company continues to use a range of appropriately structured contracting and commercial terms, including fixed, indexed and performance-based contracts.
Acquisition and Disposition of Assets The company continually evaluates opportunities to dispose of assets that are not expected to provide sufficient long-term value and to acquire assets or operations complementary to its asset base to help augment the company's financial performance and value growth. The company expects $1-2 billion in annual asset sale proceeds through 2030. Asset dispositions and restructurings may result in significant gains or losses in future periods.
During the second quarter of 2026, the company signed an agreement to sell the company's 50 percent interest in the Singapore Refining Company Private Limited (Singapore Refining Company) and other downstream assets in Singapore, Australia, Indonesia, Malaysia, the Philippines and Vietnam. This transaction is expected to close in 2027.
On October 6, 2026, the company announced it had entered into agreements to restructure its commercial relationship with Hess Midstream LP. Refer to Note 19 Restructuring of Hess Midstream for additional information.
In addition, some assets are divested along with their related liabilities, such as decommissioning obligations. In certain instances, such transferred obligations have returned and may continue to return to the company and result in losses that could be significant. The company has historically recognized losses and could have additional significant obligations revert, primarily in the United States, but is not currently aware of any such obligations that are reasonably possible to be material. Refer to Note 12 Other Contingencies and Commitments for additional information.
Timing Effects The company uses financial derivatives as economic hedges to manage certain price risks related to physical hydrocarbon shipments. At the end of the quarter, as per the ASC 815 requirement, these derivatives are marked-to-market and reflected in current period earnings; however, earnings impacts on the associated physical shipments are not recognized until delivery is completed. This creates a timing difference in earnings recognition that is expected to unwind in future periods. In addition, the company's use of LIFO accounting can result in non-cash earnings effects. Together, these are referred to as timing effects. In a rising commodity price environment, timing effects are generally negative and in a declining commodity price environment, timing effects are generally positive. In 2026, volatility in commodity prices resulted in significant fluctuations in timing effects, with unfavorable effects of $2.9 billion in the first quarter as commodity prices increased in March, favorable effects of $1.5 billion in the second quarter as prices declined in June and unfavorable effects of $1.6 billion in the third quarter as commodity prices increased in September.
Other Impacts The company closely monitors developments in the financial and credit markets, the level of worldwide economic activity, and the implications for the company of movements in prices for crude oil, natural gas and natural gas liquids (NGLs). Management takes these developments into account in the conduct of daily operations and for business planning.
Comments related to earnings trends for the company's major business areas are as follows:
Upstream Earnings for the upstream segment are closely aligned with industry prices for crude oil, natural gas and NGLs. These prices are subject to external factors over which the company has no control, including product demand connected with global economic conditions, industry production and inventory levels, technology advancements, production quotas or other actions imposed by OPEC+ countries, actions of regulators, weather-related damage and disruptions, competing fuel prices, natural and human causes beyond the company's control, and regional supply interruptions or fears thereof that may be caused by military conflicts, civil unrest or political uncertainty. Any of these factors could also inhibit the company's production capacity in an affected region. The company closely monitors developments in the countries in which it operates and holds investments and seeks to manage risks in operating its facilities and businesses.
The longer-term trend in earnings for the upstream segment is also a function of other factors, including the company's ability to efficiently find, acquire and produce crude oil, natural gas and NGLs, changes in fiscal terms of contracts, the pace of energy transition, and changes in tax, environmental and other applicable laws and regulations.
The company conducts its activities in Venezuela through the Petroboscan, Petropiar and Petroindependencia joint ventures, subject to U.S. government authorizations and sanctions. Effective September 1, 2026, the company began applying the equity method of accounting to these investments, reflecting enhanced fiscal, commercial and legal terms intended to support durable and competitive long-term investments. The company now recognizes its share of the affiliate earnings, production and reserves. This accounting change is not expected to significantly affect the amount or timing of earnings recognition. Future earnings and cash flows will be affected by commodity prices, operating performance and distributions, and other risk factors described in the company's disclosures.
Chevron maintains an equity interest in the Caspian Pipeline Consortium (CPC) that provides a primary export route for Tengiz field production in Kazakhstan. An adverse event or incident affecting CPC operations, which CPC has experienced from time to time, such as drone attacks on CPC and third-party infrastructure and vessels, could have a negative impact on the company's future results of operations and financial position. The financial impacts of such risks remain uncertain.
Governments (including Russia) have imposed and may impose additional sanctions and other trade laws, restrictions and regulations that could lead to disruption in our ability to produce, transport and/or export crude in the region around Russia.
Recent geopolitical conditions in the Middle East have impacted, and may continue to impact, the company's business. Chevron has exposure to the Middle East through its upstream, downstream, chemicals and trading businesses, as well as through logistics activities, with operations in Israel, the Partitioned Zone between Saudi Arabia and Kuwait, and the surrounding region. The conflict has resulted in production curtailments in the Partitioned Zone between Saudi Arabia and Kuwait and from CPChem assets in Saudi Arabia and Qatar, and increased risks associated with lifting and transporting physical cargoes. The company has also experienced higher shipping and insurance costs and challenges for vessels transiting the Strait of Hormuz, the Arabian Gulf and Red Sea. While the company's physical operations have not been materially impacted to date, the situation throughout the region remains volatile with the potential for escalation, which could result in additional operational restrictions, supply disruptions, and logistics challenges. The extent to which continued geopolitical tensions could impact the company's results of operations and financial condition remains uncertain.
In addition, the conflict in the Middle East has increased potential physical and other risks to the company's operations and assets. The company also faces growing threats from sophisticated cyberattacks that leverage artificial intelligence and similar tools. The company continues to actively monitor regional developments and maintain contingency plans for its operations, supply chains, and logistics activities. Any further impacts on the company's results of operations and financial condition remain uncertain.
Sources: Platts (crude) & Energy Intelligence (natural gas)
The chart above shows the trend in benchmark prices for spot dated Brent crude oil (Brent), West Texas Intermediate (WTI) crude oil, and U.S. Henry Hub natural gas. The Brent price averaged $94 per barrel for the first nine months of 2026, compared with $71 per barrel during the first nine months of 2025, and was about $96 per barrel on November 4, 2026. For every dollar change in Brent crude oil prices, the company's annual after-tax earnings and cash flow sensitivity is approximately $600 million. The WTI price averaged $84 per barrel for the first nine months of 2026, compared to $67 per barrel in the first nine months of 2025, and was about $88 per barrel on November 4, 2026. Crude oil prices increased sharply during the third quarter of 2026 following further escalation of conflict in the Middle East and prolonged disruptions to global crude oil and refined product supplies.
The U.S. Henry Hub natural gas price averaged $3.49 per thousand cubic feet (MCF) for the first nine months of 2026, compared with $3.49 per MCF during the first nine months of 2025, and was about $2.63 per MCF
on November 4, 2026. Henry Hub natural gas prices were relatively unchanged during the third quarter of 2026 as strong domestic production, additional pipeline capacity and higher inventories contributed to a well-supplied domestic market.
Outside the United States, prices for natural gas also depend on regional supply and demand, regulatory circumstances and infrastructure conditions in local markets. The company's long-term contract prices for LNG are typically linked to crude oil prices. Most of the equity LNG offtake from the operated Australian LNG assets is committed under binding long-term contracts, with some sold in the Asian spot LNG market.
See page 40 for the company's U.S. and international average realizations for the first nine months of 2026 and the same period last year.
Production The company's worldwide net oil-equivalent production in the first nine months of 2026 averaged 3.97 million barrels per day, up 10 percent from a year ago due to the acquisition of Hess Corporation (Hess) and growth in the Gulf of America and Permian Basin, partly offset by lower production at TCO. About 17 percent of the company's net oil-equivalent production in the first nine months of 2026 occurred in the OPEC+ member countries of Equatorial Guinea, Kazakhstan, Malaysia, Nigeria, the Partitioned Zone between Saudi Arabia and Kuwait, and Venezuela.
Refer to the "Results of Operations" section on page 34 for additional discussion of the company's upstream business.
Downstream Earnings for the downstream segment are closely tied to margins on the refining, manufacturing and marketing of products that include gasoline, diesel, jet fuel, lubricants, fuel oil, fuel and lubricant additives, petrochemicals and renewable fuels. Industry margins are sometimes volatile and can be affected by the global and regional supply-and-demand balance for refined products and petrochemicals, and by changes in the price of crude oil, other refinery and petrochemical feedstocks, and natural gas. Industry margins can also be influenced by inventory levels, geopolitical events, costs of materials and services, refinery or chemical plant capacity utilization, maintenance programs, and disruptions at refineries or chemical plants resulting from unplanned outages due to severe weather, fires or other operational events.
Other factors affecting profitability for downstream operations include the reliability and efficiency of the company's refining, marketing and petrochemical assets, the effectiveness of its crude oil and product supply functions, and the volatility of tanker-charter rates for the company's shipping operations, which are driven by the industry's demand for crude oil and product tankers. Other factors beyond the company's control include the general level of inflation and energy costs to operate the company's refining, marketing and petrochemical assets, and changes in tax, environmental, and other applicable laws and regulations.
Downstream earnings benefited from elevated refining margins during the third quarter of 2026, reflecting disruptions to global refined product supplies resulting from continued geopolitical events. The duration of these disruptions and their impact on future industry margins remain uncertain, and current margin levels may not be indicative of future results.
The company's most significant marketing areas are the West Coast and Gulf Coast of the United States and Asia Pacific. Chevron operates or has significant ownership interests in refineries in each of these areas.
Refer to the "Results of Operations" section on page 34 for additional discussion of the company's downstream operations.
All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology companies.
Refer to "Cautionary Statements Relevant to Forward-Looking Information" on page 2 and to "Risk Factors" on pages 21 through 27 of the company's 2025 Annual Report on Form 10-K for a discussion of some of the inherent risks that could materially impact the company's results of operations or financial condition.
Noteworthy Developments
Certain noteworthy developments in recent months included the following:
•Angola - Announced an offshore crude oil and natural gas condensate discovery in the prolific Lower Congo Basin, demonstrating the potential of the company's exploration program in sub-Saharan Africa.
•Cambodia - Completed the sale of the downstream fuels business.
•Libya - Signed an exploration agreement with Libya's National Oil Corporation in the Sirte Basin, advancing Chevron's North Africa upstream growth strategy and exploration portfolio.
•United States - Announced plans to continue to strengthen the competitiveness of the company's Bakken upstream operations by restructuring its long-term commercial arrangements with Hess Midstream LP, reducing midstream costs by approximately 50 percent and increasing operational flexibility.
•United States - Started production at the new Bunge Chevron Ag Renewables LLC oilseed-processing facility in Destrehan, Louisiana, supplying additional feedstocks for transportation fuels.
•Venezuela - Improved commercial terms and expanded acreage, supporting future investments and the potential to more than double production over the next five years.
Results of Operations
Business Segments The following section presents the results of operations and variances on an after-tax basis for the company's business segments - Upstream and Downstream - as well as for "All Other." (Refer to Note 7 Operating Segments and Geographic Data for a discussion of the company's "reportable segments," as defined under the accounting standards for segment reporting.)
Upstream
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| Unit * | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| U.S. Upstream | ||||||||||||||||||||||||||
| Earnings | $MM | $ | 3,293 | $ | 1,282 | $ | 8,946 | $ | 4,558 | |||||||||||||||||
| Net Oil-Equivalent Production | MBOED | 2,043 | 2,040 | 2,048 | 1,792 | |||||||||||||||||||||
| Liquids Production | MBD | 1,456 | 1,496 | 1,469 | 1,292 | |||||||||||||||||||||
| Natural Gas Production | MMCFD | 3,522 | 3,265 | 3,474 | 2,997 | |||||||||||||||||||||
| Liquids Realization | $/BBL | $ | 62.72 | $ | 48.12 | $ | 61.92 | $ | 50.12 | |||||||||||||||||
| Natural Gas Realization | $/MCF | $ | 1.88 | $ | 1.77 | $ | 1.74 | $ | 1.99 | |||||||||||||||||
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* MBD - thousands of barrels per day; MMCFD - millions of cubic feet per day; BBL - Barrel; MCF - thousands of cubic feet; MBOED - thousands of barrels of oil-equivalent per day.
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Three Month Periods Ended September 30, 2026 and 2025
U.S. upstream earnings increased by $2.0 billion primarily due to higher liquids realizations of $1.5 billion and lower operating expenses of $590 million, including the absence of prior year severance and transaction costs related to the Hess acquisition of $245 million.
Net oil-equivalent production was up 3,000 barrels per day from the year-ago period. The increase was primarily due to higher production in the Gulf of America, following project ramp-ups at Ballymore, Whale and Anchor, partly offset by lower production in the Bakken.
Nine Month Periods Ended September 30, 2026 and 2025
U.S. upstream earnings increased by $4.4 billion primarily due to higher liquids realizations of $3.5 billion and increased sales volumes of $2.2 billion, partly offset by higher depreciation, depletion and amortization of $1.2 billion.
Net oil-equivalent production was up 256,000 barrels per day, or 14 percent. The increase was primarily due to the acquisition of Hess and higher production in the Gulf of America following project start-ups.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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Unit (2)
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2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| International Upstream | ||||||||||||||||||||||||||
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Earnings (1)
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$MM | $ | 2,405 | $ | 2,020 | $ | 8,843 | $ | 5,229 | |||||||||||||||||
| Net Oil-Equivalent Production | MBOED | 1,937 | 2,046 | 1,922 | 1,822 | |||||||||||||||||||||
| Liquids Production | MBD | 1,010 | 1,099 | 1,026 | 925 | |||||||||||||||||||||
| Natural Gas Production | MMCFD | 5,563 | 5,674 | 5,373 | 5,382 | |||||||||||||||||||||
| Liquids Realization | $/BBL | $ | 86.09 | $ | 63.16 | $ | 86.94 | $ | 63.14 | |||||||||||||||||
| Natural Gas Realization | $/MCF | $ | 9.44 | $ | 6.88 | $ | 8.14 | $ | 7.06 | |||||||||||||||||
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(1) Includes foreign currency effects
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$MM | $ | (133) | $ | 89 | $ | (443) | $ | (283) | |||||||||||||||||
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(2) MBD - thousands of barrels per day; MMCFD - millions of cubic feet per day; BBL - Barrel; MCF - thousands of cubic feet; MBOED - thousands of barrels of oil-equivalent per day.
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Three Month Periods Ended September 30, 2026 and 2025
International upstream earnings increased by $385 million primarily due to higher realizations of $2.2 billion and higher liftings in Venezuela of $470 million, partly offset by unfavorable timing effects of $1.1 billion, unfavorable taxes of $310 million, unfavorable foreign currency effects of $222 million, a legal reserve of $160 million and an impairment charge of $110 million.
Net oil-equivalent production was down 109,000 barrels per day, or 5 percent. The decrease was primarily due to lower entitlements from higher prices and impacts from the conflict in the Middle East, partly offset by record production at operated assets in Australia and the inclusion of one month of Venezuela production following the switch to equity accounting.
Nine Month Periods Ended September 30, 2026 and 2025
International upstream earnings increased by $3.6 billion primarily due to higher realizations of $4.2 billion and increased sales volumes of $3.3 billion, partly offset by unfavorable timing effects of $1.7 billion, higher depreciation, depletion and amortization of $1.6 billion, and unfavorable taxes of $720 million.
Net oil-equivalent production was up 100,000 barrels per day, or 5 percent. The increase was primarily due to the acquisition of Hess, partly offset by lower production at TCO and curtailments in the Partitioned Zone between Saudi Arabia and Kuwait due to the Middle East conflict.
Downstream
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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Unit *
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2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| U.S. Downstream | ||||||||||||||||||||||||||
| Earnings | $MM | $ | 3,585 | $ | 638 | $ | 6,192 | $ | 1,145 | |||||||||||||||||
| Refinery Crude Unit Inputs | MBD | 1,093 | 1,064 | 1,072 | 1,043 | |||||||||||||||||||||
| Refined Product Sales | MBD | 1,304 | 1,303 | 1,297 | 1,325 | |||||||||||||||||||||
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* MBD - thousands of barrels per day.
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Three Month Periods Ended September 30, 2026 and 2025
U.S. downstream earnings increased by $2.9 billion primarily due to higher margins on refined product sales of $2.9 billion.
Refinery crude unit inputs were up 29,000 barrels per day, or 3 percent, compared to the year-ago period as refineries operated reliably at record levels near capacity.
Refined product sales were relatively flat compared to the year-ago period.
Nine Month Periods Ended September 30, 2026 and 2025
U.S. downstream earnings increased by $5.0 billion primarily due to higher margins on refined product sales of $5.0 billion and higher earnings from the 50 percent-owned affiliate, CPChem, of $390 million, partly offset by higher litigation reserves of $190 million.
Refinery crude unit inputs were up 29,000 barrels per day, or 3 percent, compared to the year-ago period as refineries operated reliably at near capacity levels.
Refined product sales were down 28,000 barrels per day, or 2 percent, compared to the year-ago period.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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Unit (2)
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2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| International Downstream | ||||||||||||||||||||||||||
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Earnings (1)
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$MM | $ | 1,346 | $ | 499 | $ | 2,790 | $ | 1,054 | |||||||||||||||||
| Refinery Crude Unit Inputs | MBD | 665 | 663 | 626 | 648 | |||||||||||||||||||||
| Refined Product Sales | MBD | 1,388 | 1,517 | 1,388 | 1,463 | |||||||||||||||||||||
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(1) Includes foreign currency effects
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$MM | $ | (9) | $ | 42 | $ | 30 | $ | (57) | |||||||||||||||||
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(2) MBD - thousands of barrels per day.
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Three Month Periods Ended September 30, 2026 and 2025
International downstream earnings increased by $847 million primarily due to higher margins on refined product sales of $1.1 billion, partly offset by unfavorable timing effects of $370 million.
Refinery crude unit inputs were relatively flat from the year-ago period.
Refined product sales were down 129,000 barrels per day, or 9 percent, compared to the year-ago period due to supply disruption from the Middle East conflict.
Nine Month Periods Ended September 30, 2026 and 2025
International downstream earnings increased by $1.7 billion primarily due to higher margins on refined product sales of $2.3 billion and asset sale gains of $260 million, partly offset by unfavorable timing effects of $1.0 billion.
Refinery crude unit inputs were down 22,000 barrels per day, or 3 percent, compared to the year-ago period primarily due to a turnaround at the Star Petroleum Refining Public Company Limited refinery in Thailand.
Refined product sales were down 75,000 barrels per day, or 5 percent, compared to the year-ago period due to supply disruption from the Middle East conflict.
All Other
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| Unit | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| All Other | ||||||||||||||||||||||||||
| Earnings/(Charges)* | $MM | $ | (705) | $ | (900) | $ | (2,565) | $ | (2,457) | |||||||||||||||||
| * Includes foreign currency effects | $ | (1) | $ | 16 | $ | (2) | $ | 1 | ||||||||||||||||||
Three Month Periods Ended September 30, 2026 and 2025
Net charges decreased by $195 million primarily due to favorable tax items and lower interest expense, partly offset by the absence of a prior-year favorable fair value adjustment for Hess shares.
Nine Month Periods Ended September 30, 2026 and 2025
Net charges increased by $108 million primarily due to higher employee benefit costs and higher interest expense, partially offset by favorable tax items.
Consolidated Statement of Income
Explanations of variations between periods for selected income statement categories are provided below:
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Sales and other operating revenues | $ | 65,237 | $ | 48,169 | $ | 179,992 | $ | 138,645 | |||||||||||||||
Sales and other operating revenues increased $17.1 billion for the third quarter mainly due to higher refined product and crude oil prices, partially offset by lower crude sales volumes. Sales and other operating revenues for the nine-month periods increased $41.3 billion primarily due to higher refined product and crude oil prices.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Income from equity affiliates | $ | 2,097 | $ | 981 | $ | 4,967 | $ | 2,337 | |||||||||||||||
Income from equity affiliates in the third quarter and nine-month periods increased mainly due to higher upstream-related earnings from TCO in Kazakhstan and Petropiar in Venezuela following the transition to equity accounting on September 1, 2026, and higher downstream-related earnings primarily due to higher refining margins at GS Caltex in South Korea and chemicals margins at CPChem.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Other income (loss) | $ | 464 | $ | 576 | $ | 1,501 | $ | 1,176 | |||||||||||||||
Other income for third quarter periods decreased primarily due to the absence of a prior year favorable fair value adjustment for Hess shares and foreign currency effects, partially offset by higher income from Venezuela. Other income for the nine-month periods increased primarily due to higher income from Venezuela, partially offset by the absence of the prior year asset sale gain.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Purchased crude oil and products | $ | 36,534 | $ | 27,398 | $ | 101,406 | $ | 82,866 | |||||||||||||||
Purchased crude oil and products increased $9.1 billion for the third quarter and $18.5 billion for the nine-month periods, primarily reflecting higher crude oil and refined product prices.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Operating, selling, general and administrative expenses | $ | 9,477 | $ | 9,058 | $ | 26,984 | $ | 24,250 | |||||||||||||||
Operating, selling, general and administrative expenses for third quarter periods increased primarily due to higher transportation costs, partially offset by lower employee expenses. Operating, selling, general and administrative expenses for the nine-month periods increased primarily due to higher transportation costs and costs associated with the acquisition of Hess, partially offset by lower employee expenses.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Exploration expenses | $ | 259 | $ | 288 | $ | 720 | $ | 727 | |||||||||||||||
Exploration expenses in third quarter decreased primarily due to lower geological and geophysical engineering costs. Exploration expenses for the nine-month periods decreased primarily due to lower dry hole expenses, partially offset by higher geological and geophysical engineering costs.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Depreciation, depletion and amortization | $ | 6,272 | $ | 5,781 | $ | 18,162 | $ | 14,248 | |||||||||||||||
Depreciation, depletion and amortization expenses in third quarter increased primarily due to higher rates. Depreciation, depletion and amortization expenses for the nine-month periods increased primarily due to higher production, including from legacy Hess assets, and higher rates.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Taxes other than on income | $ | 1,310 | $ | 1,347 | $ | 3,837 | $ | 3,903 | |||||||||||||||
Taxes other than on income for third quarter and for the nine-month periods decreased primarily due to lower excise taxes related to downstream activities.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Interest and debt expense | $ | 304 | $ | 370 | $ | 1,001 | $ | 856 | |||||||||||||||
Interest and debt expenses in third quarter decreased due to lower debt balances compared to third quarter last year. Interest and debt expenses for the nine-month periods increased mainly due to higher average debt balances compared to the same period last year, including the debt assumed from the Hess acquisition.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
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Other components of net periodic benefit costs
|
$ | 17 | $ | 70 | $ | 95 | $ | 164 | |||||||||||||||
Other components of net periodic benefit costs in third quarter and for the nine-month periods decreased mainly due to higher expected returns on plan assets.
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Income tax expense/(benefit) | $ | 3,577 | $ | 1,801 | $ | 9,700 | $ | 5,504 | |||||||||||||||
The company's increase in income tax expense for third quarter 2026 of $1.8 billion was primarily due to the increase in total income before tax of $8.2 billion.
U.S. income before tax increased from $1.3 billion in third quarter 2025 to $7.7 billion in third quarter 2026. This was driven by higher upstream liquids realizations, lower operating expenses, and higher downstream margins on refined product sales. The company's U.S. income tax increased $1.3 billion between year-over-year periods, from $234 million in 2025 to $1.5 billion in 2026 primarily due to the increase in income.
International income before tax increased from $4.1 billion in third quarter 2025 to $6.0 billion in third quarter 2026. This $1.9 billion increase in income was primarily driven by higher upstream realizations and higher margins on refined product sales, partly offset by unfavorable timing effects. The company's international income tax expense increased $0.5 billion between year-over-year periods, from $1.6 billion in 2025 to $2.1 billion in 2026, primarily due to the increase in income partially offset by mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions.
The company's increase in income tax expense for the first nine months of 2026 of $4.2 billion was primarily due to the increase in the total before-tax income in 2026 of $19.1 billion, partially offset by mix effects resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions.
U.S. income before tax increased between the nine-month periods, from $4.3 billion in 2025 to $15.9 billion in 2026. This increase in income was primarily driven by increased upstream sales volumes, higher upstream liquids realizations, and higher margins on refined product sales partly offset by higher depreciation, depletion and amortization. The increase in income had a direct impact on the company's U.S. income tax, resulting in an increase in tax expense of $2.4 billion between the nine-month periods, from $1.0 billion in 2025 to $3.4 billion in 2026.
International income before tax increased for the nine-month periods from $10.9 billion in 2025 to $18.4 billion in 2026. This increase in income was primarily driven by increased upstream sales volumes, higher upstream liquids realizations, and higher margins on refined product sales, partly offset by higher depreciation, depletion and amortization and unfavorable timing effects. The increase in income partly offset by mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions, primarily drove the $1.8 billion increase in international income tax expense between year-over-year periods, from $4.5 billion in 2025 to $6.3 billion in 2026.
Additional information related to the company's effective income tax rate is included in Note 10 Income Taxes to the Consolidated Financial Statements.
Selected Operating Data
The following table presents a comparison of selected operating data:
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Selected Operating Data (1) (2)
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Three Months Ended September 30 |
Nine Months Ended September 30 |
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| Unit | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| U.S. Upstream | ||||||||||||||||||||||||||
| Net crude oil and natural gas liquids production | MBD | 1,456 | 1,496 | 1,469 | 1,292 | |||||||||||||||||||||
|
Net natural gas production(3)
|
MMCFD | 3,522 | 3,265 | 3,474 | 2,997 | |||||||||||||||||||||
| Net oil-equivalent production | MBOED | 2,043 | 2,040 | 2,048 | 1,792 | |||||||||||||||||||||
| Sales of natural gas | MMCFD | 5,982 | 6,031 | 5,950 | 5,683 | |||||||||||||||||||||
| Sales of natural gas liquids | MBD | 569 | 516 | 575 | 513 | |||||||||||||||||||||
|
Revenue from net production
|
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| Crude | $/BBL | $ | 83.44 | $ | 62.93 | $ | 82.77 | $ | 64.52 | |||||||||||||||||
| NGLs | $/BBL | $ | 22.41 | $ | 18.06 | $ | 20.75 | $ | 19.67 | |||||||||||||||||
| Liquids (weighted average of Crude and NGLs) | $/BBL | $ | 62.72 | $ | 48.12 | $ | 61.92 | $ | 50.12 | |||||||||||||||||
| Natural gas | $/MCF | $ | 1.88 | $ | 1.77 | $ | 1.74 | $ | 1.99 | |||||||||||||||||
| International Upstream | ||||||||||||||||||||||||||
| Net crude oil and natural gas liquids production | MBD | 1,010 | 1,099 | 1,026 | 925 | |||||||||||||||||||||
|
Net natural gas production(3)
|
MMCFD | 5,563 | 5,674 | 5,373 | 5,382 | |||||||||||||||||||||
| Net oil-equivalent production | MBOED | 1,937 | 2,046 | 1,922 | 1,822 | |||||||||||||||||||||
| Sales of natural gas | MMCFD | 6,175 | 5,682 | 5,715 | 5,523 | |||||||||||||||||||||
| Sales of natural gas liquids | MBD | 148 | 127 | 144 | 124 | |||||||||||||||||||||
| Revenue from liftings | ||||||||||||||||||||||||||
| Crude | $/BBL | $ | 88.29 | $ | 64.84 | $ | 89.55 | $ | 64.96 | |||||||||||||||||
| NGLs | $/BBL | $ | 27.44 | $ | 18.67 | $ | 26.47 | $ | 22.07 | |||||||||||||||||
| Liquids (weighted average of Crude and NGLs) | $/BBL | $ | 86.09 | $ | 63.16 | $ | 86.94 | $ | 63.14 | |||||||||||||||||
| Natural gas | $/MCF | $ | 9.44 | $ | 6.88 | $ | 8.14 | $ | 7.06 | |||||||||||||||||
| U.S. and International Upstream | ||||||||||||||||||||||||||
| Total net oil-equivalent production | MBOED | 3,980 | 4,086 | 3,970 | 3,614 | |||||||||||||||||||||
| U.S. Downstream | ||||||||||||||||||||||||||
|
Gasoline sales(4)
|
MBD | 670 | 676 | 655 | 688 | |||||||||||||||||||||
| Other refined product sales | MBD | 634 | 627 | 642 | 637 | |||||||||||||||||||||
| Total refined product sales | MBD | 1,304 | 1,303 | 1,297 | 1,325 | |||||||||||||||||||||
| Sales of natural gas | MMCFD | 22 | 26 | 26 | 32 | |||||||||||||||||||||
| Sales of natural gas liquids | MBD | 37 | 29 | 35 | 25 | |||||||||||||||||||||
| Refinery crude unit inputs | MBD | 1,093 | 1,064 | 1,072 | 1,043 | |||||||||||||||||||||
| International Downstream | ||||||||||||||||||||||||||
|
Gasoline sales(4)
|
MBD | 257 | 336 | 273 | 351 | |||||||||||||||||||||
| Other refined product sales | MBD | 740 | 793 | 744 | 735 | |||||||||||||||||||||
| Share of affiliate sales | MBD | 391 | 388 | 371 | 377 | |||||||||||||||||||||
| Total refined product sales | MBD | 1,388 | 1,517 | 1,388 | 1,463 | |||||||||||||||||||||
| Sales of natural gas | MMCFD | - | - | - | 1 | |||||||||||||||||||||
| Sales of natural gas liquids | MBD | 150 | 109 | 122 | 119 | |||||||||||||||||||||
| Refinery crude unit inputs | MBD | 665 | 663 | 626 | 648 | |||||||||||||||||||||
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(1) Includes company share of equity affiliates.
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|
(2) MBD - thousands of barrels per day; MMCFD - millions of cubic feet per day; BBL - Barrel; MCF - thousands of cubic feet; oil-equivalent gas conversion ratio is 6,000 cubic feet of natural gas = 1 barrel of crude oil; MBOED - thousands of barrels of oil-equivalent per day.
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|
(3) Includes natural gas consumed in operations (MMCFD):
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| United States | 62 | 77 | 68 | 62 | ||||||||||||||||||||||
| International | 576 | 592 | 578 | 575 | ||||||||||||||||||||||
|
(4) Includes branded and unbranded gasoline.
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Liquidity and Capital Resources
Cash, cash equivalents and marketable securities totaled $12.8 billion at September 30, 2026, and $6.3 billion at year-end 2025. The company holds its cash with a diverse group of major financial institutions and has processes and safeguards in place to manage its cash balances and mitigate the risk of loss. Cash provided by operating activities in the first nine months of 2026 was $41.2 billion, compared with $23.2 billion in the year-ago period, primarily reflecting higher commodity prices, downstream margins, and increased cash distributions from TCO. Capital expenditures totaled $12.6 billion in the first nine months of 2026, compared with $12.1 billion in the year-ago period. Proceeds and deposits related to asset sales and returns of investment totaled $1.1 billion in the first nine months of 2026, compared to $1.5 billion in the year-ago period. Net repayment (borrowing) of loans by equity affiliates included a net inflow of $2.0 billion in the first nine months of 2026, mainly due to loan repayments from TCO, compared with $798 million in the year-ago period.
Dividends The company paid dividends of $10.5 billion to common stockholders during the first nine months of 2026. In October 2026, the company declared a quarterly dividend of $1.78 per common share, payable in December 2026.
Debt and Finance Lease Liabilities Chevron's total debt and finance lease liabilities were $33.5 billion at September 30, 2026, down from $40.8 billion at December 31, 2025. The decrease was primarily due to maturing long-term notes, a finance lease repayment, and lower commercial paper balances.
The company's primary source for working capital needs is its commercial paper program. The outstanding balance for the company's commercial paper program at September 30, 2026, was $808 million, compared with $4.6 billion at December 31, 2025. The company's debt and finance lease liabilities due within one year, consisting primarily of commercial paper, the current portion of long-term debt and redeemable long-term obligations, totaled $9.6 billion at September 30, 2026, and $10.9 billion at December 31, 2025. Of these amounts, $8.9 billion at September 30, 2026, and $9.9 billion at December 31, 2025, were reclassified to long-term debt. At September 30, 2026, settlement of these obligations was not expected to require the use of working capital within one year, as the company had the intent and the ability, as evidenced by committed credit facilities, to continually refinance them.
At September 30, 2026, the company had $11.4 billion in 364-day committed credit facilities with various major banks that enable the refinancing of short-term obligations. The credit facilities allow the company the option to convert outstanding short-term obligations into a term loan for a period of up to one year from the facilities' termination date. This supports commercial paper borrowing and can also be used for general corporate purposes. The company's practice has been to replace expiring commitments with new commitments on substantially the same terms, maintaining levels management believes appropriate. Any borrowings under the facilities would be unsecured indebtedness at interest rates based on the Secured Overnight Financing Rate (SOFR), or an average of base lending rates published by specified banks and on terms reflecting the company's strong credit rating. No borrowings were outstanding under these facilities at September 30, 2026. In addition, the company has an automatic shelf registration statement that expires in November 2027 for an unspecified amount of nonconvertible debt securities issued by Chevron Corporation or CUSA.
The major debt rating agencies routinely evaluate the company's debt, and the company's cost of borrowing can increase or decrease depending on these debt ratings. The company has outstanding bonds issued by Chevron Corporation, CUSA, Texaco Capital Inc., Noble Energy, Inc., and Hess Corporation. The securities that are the obligations of, or guaranteed by, Chevron Corporation carry an AA- rating by Standard and Poor's Corporation (S&P) and an Aa2 rating by Moody's Investors Service (Moody's). The company's U.S. commercial paper is rated A-1+ by S&P and P-1 by Moody's. All of these ratings denote high-quality, investment-grade securities.
The company's future debt level is dependent primarily on results of operations, cash that may be generated from asset dispositions, the capital program, lending commitments to affiliates, loan repayments from affiliates, and shareholder distributions. Based on its high-quality debt ratings, the company believes that it has substantial borrowing capacity to meet unanticipated cash requirements. During extended periods of low
prices for crude oil and natural gas and narrow margins for refined products and commodity chemicals, the company has the flexibility to modify capital spending plans, discontinue or curtail the stock repurchase program, sell assets, and increase borrowings to continue paying the common stock dividend. The company remains committed to retaining high-quality debt ratings.
Summarized Financial Information for Guarantee of Securities of Subsidiaries CUSA issued bonds that are fully and unconditionally guaranteed on an unsecured basis by Chevron Corporation (together, the "Obligor Group"). The tables below contain summary financial information for Chevron Corporation, as Guarantor, excluding its consolidated subsidiaries, and CUSA, as the issuer, excluding its consolidated subsidiaries. The summary financial information of the Obligor Group is presented on a combined basis, and transactions between the combined entities have been eliminated. Financial information for non-guarantor entities has been excluded.
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Nine Months Ended September 30, 2026 |
Year Ended December 31, 2025 |
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| (Millions of dollars) (unaudited) | |||||||||||
| Sales and other operating revenues | $ | 89,313 | $ | 92,272 | |||||||
| Sales and other operating revenues - related party | 43,155 | 36,700 | |||||||||
| Total costs and other deductions | 77,390 | 92,316 | |||||||||
| Total costs and other deductions - related party | 46,265 | 33,229 | |||||||||
| Net income (loss) | $ | 25,870 | $ | 40,967 | |||||||
|
At September 30, 2026 |
At December 31, 2025 |
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| (Millions of dollars) (unaudited) | |||||||||||
| Current assets | $ | 27,595 | $ | 17,315 | |||||||
| Current assets - related party | 4,918 | 2,266 | |||||||||
| Other assets | 59,899 | 58,530 | |||||||||
| Current liabilities | 26,420 | 26,388 | |||||||||
| Current liabilities - related party | 22,456 | 18,033 | |||||||||
| Other liabilities | 27,799 | 29,539 | |||||||||
| Total net equity (deficit) | $ | 15,737 | $ | 4,151 | |||||||
Common Stock Repurchase Program On January 25, 2023, the Board of Directors authorized the repurchase of the company's shares of common stock in an aggregate amount of $75 billion (the "2023 Program"). The 2023 Program took effect on April 1, 2023, and does not have a fixed expiration date. In the aggregate, the company has repurchased 294 million shares for $46.5 billion under the 2023 Program, including 12.9 million shares repurchased for $2.5 billion in third quarter 2026. Chevron expects share repurchases in fourth quarter 2026 to be between $2.5-$3.0 billion.
Repurchases may be made from time to time in the open market, by block purchases, in privately negotiated transactions or in such other manner as determined by the company. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the company's shares, general market and economic conditions, and other factors. The stock repurchase program and any forward guidance as to expected repurchases do not obligate the company to acquire any particular amount of common stock, and the program may be discontinued or resumed at any time.
Noncontrolling Interests The company had noncontrolling interests of $5.7 billion at both September 30, 2026, and December 31, 2025, including non-controlling interest in Hess Midstream LP.
Financial Ratios and Metrics
|
At September 30, 2026 |
At December 31, 2025 |
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|
Current Ratio (1)
|
1.3 | 1.2 | ||||||||||||||||||
| Debt Ratio | 14.7 | % | 17.9 | % | ||||||||||||||||
|
Net Debt Ratio (2)
|
9.6 | % | 15.6 | % | ||||||||||||||||
| Debt-to-CFFO | 0.6x | 1.2x | ||||||||||||||||||
|
Net debt-to-CFFO (3)
|
0.4x | 1.0x | ||||||||||||||||||
(1) At September 30, 2026, the book value of inventory was lower than replacement cost.
(2) Net Debt Ratio for September 30, 2026, is calculated as short-term debt of $0.7 billion plus long-term debt of $32.8 billion (together, "total debt") less cash and cash equivalents, time deposits, and marketable securities of $12.8 billion as a percentage of total debt less cash and cash equivalents, time deposits, and marketable securities, plus Chevron Corporation Stockholders' Equity of $194.3 billion. For the December 31, 2025, calculation, please refer to page 52 of Chevron's 2025 Annual Report on Form 10-K.
(3) Net debt-to-CFFO for September 30, 2026, is calculated as short-term debt of $0.7 billion plus long-term debt of $32.8 billion (together, "total debt") less cash and cash equivalents, time deposits, and marketable securities of $12.8 billion divided by net cash provided by operating activities (CFFO) for the trailing 12 months of $52.0 billion. For the December 31, 2025, calculation, please refer to page 52 of Chevron's 2025 Annual Report on Form 10-K.
|
Nine Months Ended September 30 |
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| 2026 | 2025 | |||||||||||||
| (Millions of dollars) | ||||||||||||||
| Net cash provided by operating activities | $ | 41,161 | $ | 23,150 | ||||||||||
| Less: Capital expenditures | (12,612) | (12,083) | ||||||||||||
| Free Cash Flow | $ | 28,549 | $ | 11,067 | ||||||||||
Pension Obligations Information related to pension plan contributions is included in Note 8 Employee Benefits to the Consolidated Financial Statements.
Capital Expenditures The company's capital expenditures (capex) primarily include additions to fixed assets or investments for the company's consolidated subsidiaries and are disclosed in the Consolidated Statement of Cash Flows. Capex in the first nine months of 2026 was $529 million higher than the prior year primarily due to spend associated with legacy Hess assets, partially offset by lower spend in the Permian Basin.
Affiliate Capital Expenditures The company's affiliate capital expenditures (affiliate capex) primarily include additions to fixed assets or investments in the equity affiliate's financial statements and do not require cash outlays by the company. Affiliate capex in the first nine months of 2026 was $441 million lower than the prior year primarily due to lower spend at CPChem and TCO.
|
Capex and Affiliate Capex by Business Segment
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|
Three Months Ended September 30 |
Nine Months Ended September 30 |
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| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Capex | (Millions of dollars) | ||||||||||||||||||||||
| United States | |||||||||||||||||||||||
| Upstream | $ | 1,667 | $ | 2,383 | $ | 6,046 | $ | 7,209 | |||||||||||||||
| Downstream | 250 | 133 | 490 | 442 | |||||||||||||||||||
| All Other | 95 | 112 | 244 | 286 | |||||||||||||||||||
| Total United States | 2,012 | 2,628 | 6,780 | 7,937 | |||||||||||||||||||
| International | |||||||||||||||||||||||
| Upstream | 1,920 | 1,732 | 5,632 | 3,967 | |||||||||||||||||||
| Downstream | 64 | 72 | 163 | 139 | |||||||||||||||||||
| All Other | 15 | 12 | 37 | 40 | |||||||||||||||||||
| Total International | 1,999 | 1,816 | 5,832 | 4,146 | |||||||||||||||||||
| Capex | $ | 4,011 | $ | 4,444 | $ | 12,612 | $ | 12,083 | |||||||||||||||
| Affiliate Capex | |||||||||||||||||||||||
| Upstream | $ | 155 | $ | 214 | $ | 381 | $ | 593 | |||||||||||||||
| Downstream | 205 | 215 | 537 | 766 | |||||||||||||||||||
| Affiliate Capex | $ | 360 | $ | 429 | $ | 918 | $ | 1,359 | |||||||||||||||
Contingencies and Significant Litigation
Climate Change Information related to climate change-related matters is included in Note 11 Litigation under the heading "Climate Change."
Louisiana Information related to Louisiana coastal matters is included in Note 11 Litigation under the heading "Louisiana."
Income Taxes Information related to income tax contingencies is included in Note 10 Income Taxes and in Note 12 Other Contingencies and Commitments under the heading "Income Taxes."
Guarantees Information related to the company's guarantees is included in Note 12 Other Contingencies and Commitments under the heading "Guarantees."
Indemnification Information related to indemnification is included in Note 12 Other Contingencies and Commitments under the heading "Indemnification."
Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements Information related to the company's long-term unconditional purchase obligations and commitments is included in Note 12 Other Contingencies and Commitments under the heading "Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements."
Environmental Information related to environmental matters is included in Note 12 Other Contingencies and Commitments under the heading "Environmental."
Acquisition and Disposition of Assets Information related to the company's acquisition and disposition of assets is included in Note 12 Other Contingencies and Commitments under the headings "Decommissioning Obligations for Previously Divested Assets" and "Other Contingencies."
Other Contingencies Information related to the company's other contingencies is included in Note 12 Other Contingencies and Commitments under the heading "Other Contingencies."
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