Chevron has reported a year-over-year decline in its first quarter profit even as production hits record output.
The oil major posted total earnings of US$2.2 billion for the quarter ended March 31, down from AU$3.5 billion in the prior-year period.
The quarterly result was impacted by US$2.9 billion in unfavourable timing effects, including timing mismatches in earnings recognition related to the mark-to-market of financial derivatives before the physical delivery of the associated hydrocarbons, as well as the impact of LIFO inventory accounting.
“Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered a solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution,” said Mike Wirth, Chevron’s Chairman and CEO.
“Strong operating results in the United States, particularly following the integration of Hess, and continued growth in the Gulf of America and Permian Basin, drove higher production while maintaining financial flexibility.”
Chevron saw a jump in production for the period. Worldwide output rose by 15 per cent, while US production surged by 24 per cent, consistently exceeding two million oil-equivalent barrels per day. This growth was largely driven by the successful integration of Hess Corporation assets and continued expansion in the Permian Basin and the Gulf of America.
US refinery crude unit throughput remains over one million barrels per day for the fifth consecutive quarter and achieved a record in March 2026.
“Our U.S. refineries operated at record crude throughput in March, capital spending remains within guidance, and our structural cost reductions are firmly on track,” Wirth continued.
Despite the fluctuations in the bottom line, Chevron continued its streak of capital returns. The company returned US$6 billion to shareholders this quarter through US$3.5 billion in dividends and US$2.5 billion in share repurchases. This marks the 16th consecutive quarter where shareholder returns have topped the US$5 billion mark.
Chevron also flagged several major milestones outside of North America. The company has advanced gas projects in Equatorial Guinea and Israel, and secured new exploration leases in Greece, Libya, and Uruguay.
Looking toward the future energy mix, the company entered an exclusivity agreement with Microsoft and Engine No. 1 for a power generation project in West Texas, signalling a continued effort to balance traditional oil and gas assets with evolving energy demands.
“We continue to closely monitor developments in the Middle East with a focus on the safety of our workforce and the integrity of our assets and operations,” Wirth concluded.
“The unpredictable external environment reinforces the importance of disciplined investment to ensure reliable energy supply and global energy security.”
