Chevron Posts Record Q2 Production, Earnings Beat Amid Hess Deal

Chevron reported strong second-quarter 2025 results, surpassing Wall Street estimates despite lower crude prices and a 12.5% year-over-year decline in sales to $44.82 billion. Adjusted earnings were $1.77 per share, slightly above estimates, driven by record worldwide and U.S. net oil-equivalent production of 3.4 million barrels per day, including a milestone of 1 million barrels per day in the Permian Basin. Cash flow from operations increased to $8.6 billion, supported by higher distributions from the Tengizchevroil affiliate, and Chevron returned $5.5 billion to shareholders through dividends and share repurchases. The company recently closed its $55 billion acquisition of Hess, securing a valuable stake in the Guyana oilfield, which is expected to provide long-term growth and help sustain dividends into the 2030s. Chevron is also implementing cost-cutting measures targeting up to $3 billion in savings by the end of next year, including layoffs, to better manage lower crude price environments. The downstream segment showed growth, offsetting declines in U.S. and international upstream earnings, underscoring the company’s operational efficiency and strong financial position.