Chevron Corp. has reported record production for the third quarter even as its acquisition of Hess Corporation impacted earnings for the period.
The company reported earnings of US$3.5 billion for the quarter ending September 30, compared with US$4.5 billion in the third quarter of 2024 and US$2.5 billion in the second quarter. Included in the quarter was a net less of US$235 million due to severance and other transaction costs related to the acquisition of Hess.
Chevron attributed the lower earnings to lower crude oil prices and acquisition costs, which were offset by higher margins on refined product sales.
Mike Wirth, Chevron’s chairman and CEO, said: “Third quarter results reflect record production, strong cash generation and sustained superior cash returns to shareholders.”
The company hit new records from its U.S. and worldwide production, which was up 27 per cent and 21 per cent, respectively, from last year.
Capital expenditures increased 7 per cent to US$4.4 billion because of spending on legacy Hess assets.
The company’s U.S. upstream earnings were lower than the year-ago period due to lower liquid realisations and severance and other transaction costs. Earnings for the period fell to US$1.28 billion from US$1.95 billion in the prior-year period.
U.S. net oil-equivalent production during the quarter was up to 435,000 barrels per day due to the acquisition of Hess and higher production in the Permian Basin and Gulf of America.
It also reported international production recorded earnings of US$2.02 billion, down compared to US$2.64 billion in the same quarter in 2024. Production increased to 287,000 barrels per day driven by higher production in Kazakhstan as the Future Growth Project at Tengizchevroil (TCO) maintained nameplate capacity.
The company declared a quarterly dividend of US$1.71 per share, payable on December 10. It returned US$6 billion of cash to shareholders during the quarter, including share repurchases of US$2.6 billion and dividends of US$3.4 billion.
