Chevron Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 31 July 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings rose to $12.1 billion: Reported earnings were $12.1 billion, or $6.11 per diluted share, against $2.5 billion and $1.45 a year earlier. Adjusted earnings were $12.0 billion, or $6.06 per diluted share. Source
• Timing effects added $1.4 billion: Management said the quarter included $1.4 billion of favorable timing effects, which the notice defines as derivative mark-to-market timing and LIFO inventory effects. Source
• Cash flow from operations rose: Cash flow from operations was $22.6 billion, against $8.6 billion a year earlier and $2.5 billion in the first quarter, helped by Tengizchevroil distributions and working capital. Source
• Total production rose 20 percent: Net oil-equivalent production was 4,070 MBOED, against 3,396 a year earlier, mostly from legacy Hess assets and growth in the Permian Basin and Gulf of America. Source
• U.S. production set a quarterly record: U.S. net production was 2,077 MBOED, up 382,000 barrels per day from a year earlier, a new quarterly record. Natural gas output was 3,520 MMCFD. Source
• Free cash flow rose to $18.1 billion: Free cash flow was $18.1 billion against $4.9 billion a year earlier. Adjusted free cash flow was $15.4 billion. Source
• Record $8.4 billion debt reduction: Total debt fell by a record $8.4 billion in the quarter. The net debt ratio was 13.1 percent at June 30, against 15.6 percent at December 31. Source

“Our strong second quarter performance is a result of disciplined investment and strong execution that drove record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets.”

Mike Wirth, Chevron's chairman and chief executive officer

Guidance

What changed from last quarter

• New: Microsoft power arrangement moved from the exclusivity agreement reported last quarter to a signed 20-year power purchase agreement for a West Texas facility. Source
• New: Signed heads of agreements with the Government of Iraq on potential participation in West Qurna 2, Nasiriyah and an export pipeline. Source
• New: Agreed to sell the 50 percent interest in Singapore Refining Company and other downstream assets in six Asian markets. Source
• Ended: The Hong Kong downstream fuels and lubricants businesses were sold and the sale was completed in the quarter. Source
• New: Technology licensing agreement announced to commercialize Chevron-developed chemical surfactant technology for unconventional reservoirs. Source

Results and growth drivers

• Earnings rose to $12.1 billion: Reported earnings were $12.1 billion, or $6.11 per diluted share, against $2.5 billion and $1.45 a year earlier. Adjusted earnings were $12.0 billion, or $6.06 per diluted share. Source
• Timing effects added $1.4 billion: Management said the quarter included $1.4 billion of favorable timing effects, which the notice defines as derivative mark-to-market timing and LIFO inventory effects. Source
• Asset sale gain and currency effects: The quarter included a $230 million asset sale gain and $86 million of pension settlement costs. Currency effects reduced earnings by $49 million. Source
• Cash flow from operations rose: Cash flow from operations was $22.6 billion, against $8.6 billion a year earlier and $2.5 billion in the first quarter, helped by Tengizchevroil distributions and working capital. Source

Segment earnings

• U.S. upstream earnings more than doubled: U.S. upstream earned $3.54 billion, against $1.42 billion a year earlier, on higher liquids realizations and sales volumes, offset by higher depreciation and lower gas realizations. Source
• International upstream earnings rose: International upstream earned $4.64 billion, against $1.31 billion a year earlier, on sales volumes, liquids realizations and favorable timing, partly offset by higher depreciation. Source
• U.S. downstream earnings rose on margins: U.S. downstream earned $2.41 billion, against $404 million a year earlier, on refined product margins and higher earnings from Chevron Phillips Chemical Company LLC. Source
• International downstream back in profit: International downstream earned $2.46 billion, against $333 million a year earlier and a $1.01 billion loss in the first quarter, on margins, timing and currency. Source

“We remain focused on cost discipline and long-term value creation.”

Mike Wirth, Chevron's chairman and chief executive officer

Production and prices

• Total production rose 20 percent: Net oil-equivalent production was 4,070 MBOED, against 3,396 a year earlier, mostly from legacy Hess assets and growth in the Permian Basin and Gulf of America. Source
• U.S. production set a quarterly record: U.S. net production was 2,077 MBOED, up 382,000 barrels per day from a year earlier, a new quarterly record. Natural gas output was 3,520 MMCFD. Source
• International production rose on Hess: International net production was 1,993 MBOED, up 292,000 barrels per day from a year earlier, mainly from the Hess acquisition. Source
• International liquids realization higher: International liquids realization was $96.41 per barrel against $58.88 a year earlier. U.S. natural gas realization was $0.91 per MCF against $1.75. Source
• Brent averaged $104 a barrel: The average Brent spot price was $104 a barrel, against $81 in the first quarter and $68 a year earlier, per Platts. Source

Refinery runs and product sales

• U.S. refinery inputs at record levels: U.S. refinery crude unit inputs rose 2 percent from a year earlier, as refineries operated reliably near capacity. Source
• U.S. product sales fell on gasoline: U.S. refined product sales were 4 percent lower than a year earlier, reflecting lower gasoline demand. Source
• International refinery inputs down 10 percent: International refinery crude unit inputs were 10 percent lower than a year earlier, due to Middle East supply disruptions. Source

“And we have positioned the company to help power American AI dominance and generate resilient cash flows through leveraging our unique capabilities,”

Mike Wirth, Chevron's chairman and chief executive officer

Costs and operating expenses

• Operating expenses rose: Operating expenses, including selling, general and administrative costs, were $8.86 billion against $7.65 billion a year earlier. Source
• Depreciation charge rose: Depreciation, depletion and amortization was $6.08 billion against $4.34 billion a year earlier, the higher charge noted in the upstream segments. Source
• All Other charges little changed: All Other net charges were $978 million against $974 million a year earlier, as higher benefit and interest costs offset the absence of a prior-year Hess fair value adjustment. Source

Cash flow and capital spending

• Capex rose on legacy Hess spend: Capital expenditures rose from a year earlier, mainly on legacy Hess assets, partly offset by lower Permian Basin spend. Source
• Free cash flow rose to $18.1 billion: Free cash flow was $18.1 billion against $4.9 billion a year earlier. Adjusted free cash flow was $15.4 billion. Source
• Working capital added to cash: Cash flow from operations excluding working capital was $19.7 billion, against $8.3 billion a year earlier. The net working capital decrease was $2.9 billion. Source

Balance sheet and shareholder returns

• Record $8.4 billion debt reduction: Total debt fell by a record $8.4 billion in the quarter. The net debt ratio was 13.1 percent at June 30, against 15.6 percent at December 31. Source
• Buybacks and dividends paid: Share repurchases were $3.12 billion and common dividends were $3.50 billion in the quarter, per the cash flow statement. Source
• Shares outstanding declined: Shares outstanding were 1,962 million at June 30, 2026, against 1,977 million at March 31, per the first-quarter release. Source

Coming up, as management said on 31 July 2026

• Dividend payable September 10: The $1.78 dividend is payable September 10, 2026, to holders of record at the close of business on August 19, 2026. Source
• Singapore sale expected to close 2027: The sale of the 50 percent Singapore Refining Company interest and related downstream assets is expected to close in 2027. Source

Figures management reported

Risks management discussed

• Operational: Curtailments in the Partitioned Zone between Saudi Arabia and Kuwait, tied to the Middle East conflict, partly offset Hess-driven international production growth. Source
• Demand: International refined product sales were 13 percent lower, reflecting Middle East supply disruptions and lower demand for gasoline and diesel fuel. Source

Earlier plans management reported on

• Ahead: The structural cost reduction target was reached six months early, with $3 billion of annual run-rate savings captured. Source
• Ahead: Hess-related synergies of $1.5 billion were achieved ahead of schedule, 50 percent above the initial target. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.