Chevron Corp. reported a sharp rise in third-quarter profit on Friday, driven by a surge in refining margins that offset softer oil and gas production results. The company's adjusted earnings of $5.28 per share easily beat the consensus estimate of $4.89, according to LSEG data.
Net income for the quarter reached $9.9 billion, or $5.06 per share, compared with $3.5 billion, or $1.82 per share, in the same period last year. Revenue came in at approximately $67.8 billion, also exceeding expectations.
Refining strength powers earnings
The downstream division, which includes refining and fuel sales, generated $4.9 billion in earnings—more than four times the $1.1 billion recorded a year earlier. This improvement was fueled by geopolitical disruptions that tightened global fuel supplies, particularly attacks on refining facilities in Russia and the Middle East, which pushed margins higher.
Chevron's U.S. refineries processed a record 1 million barrels of crude per day, running at 98% capacity. Production yields of diesel and jet fuel rose by more than 10%, reflecting strong demand for refined products.
Upstream results decline
The upstream business, covering oil and gas exploration and production, earned $5.7 billion—up from $3.3 billion a year ago but down 30% from the second quarter as crude prices eased. Worldwide production averaged 3.98 million barrels of oil equivalent per day, a 2% decline from the previous quarter.
The company also recorded its first month of equity-accounted production from Venezuela under improved fiscal terms, with total production costs below $20 per barrel. However, production was lower than a year ago due to lower entitlements from higher prices and impacts from the Middle East conflict.
Cash flow supports shareholder returns
Cash flow from operations reached $16 billion, while adjusted free cash flow climbed to $14.2 billion—twice the level of a year earlier. Chevron distributed $3.5 billion in dividends and repurchased $2.5 billion worth of shares during the quarter. Net debt declined to $20.7 billion from $34.5 billion at the end of 2025.
Chief Executive Mike Wirth said the company delivered strong operational performance while continuing to invest in expanding energy supplies. The board also declared a quarterly dividend of $1.78 per share.
Oil majors benefit from refining boom
Other major energy companies also reported strong third-quarter results. ExxonMobil posted adjusted earnings of $17.5 billion, while Shell reported adjusted earnings of $10.8 billion and announced a $5 billion share buyback program. BP's third-quarter profit quadrupled to $8.46 billion, its highest on record, as refining margins and energy prices strengthened.
This article is for informational purposes only and does not constitute financial advice.
