Chevron Reports 43% Q2 Earnings Drop Amid Record Production, Hess Acquisition

Chevron Corporation reported second-quarter 2025 earnings of $2.5 billion ($1.45 per diluted share), a significant decline from $4.4 billion ($2.43 per share) in the same period last year, primarily due to lower crude oil prices, reduced income from equity affiliates, and unfavorable fair value adjustments related to Hess Corporation shares. Adjusted earnings, excluding non-operational items, were $3.1 billion ($1.77 per share), slightly surpassing analyst expectations. The company achieved record production levels, including 1 million barrels of oil equivalent per day in the Permian Basin and a total net oil-equivalent production of 3.4 million BOE per day, reflecting operational strength. Chevron completed its acquisition of Hess Corporation, enhancing its portfolio with high-quality assets in Guyana, the U.S. Bakken, and the Gulf of America, which is expected to support long-term growth. The company returned $5.5 billion to shareholders through dividends and share repurchases, marking the 13th consecutive quarter with returns exceeding $5 billion, and declared a quarterly dividend of $1.71 per share. Additionally, Chevron expanded into the U.S. lithium sector with a new acquisition aimed at direct lithium extraction, signaling diversification beyond traditional oil and gas operations.