CHEVRON CORP

Results of Operations

Business Segments The following section presents the results of operations and variances on an after-tax basis for the company’s business segments — Upstream and Downstream — as well as for “All Other.” (Refer to Note 7 Operating Segments and Geographic Data for a discussion of the company’s “reportable segments,” as defined under the accounting standards for segment reporting.)

Upstream

U.S. upstream earnings decreased by $743 million primarily due to lower liquids realizations of $1.0 billion, higher depreciation, depletion and amortization of $260 million and higher operating expenses of $190 million, partly offset by higher sales volumes of $380 million, higher natural gas realizations of $180 million, and a $115 million gain on the sale of certain non-operated U.S. pipeline assets.

Net oil-equivalent production was up 123,000 barrels per day, or 8 percent. The increase was primarily due to higher production in the Permian Basin and Gulf of America, partly offset by lower production in the Rockies.

U.S. upstream earnings decreased by $960 million primarily due to lower liquids realizations of $1.2 billion, higher operating expenses of $470 million, including a legal reserve, and higher depreciation, depletion and amortization of $400 million, partly offset by higher sales volumes of $440 million, higher natural gas realizations of $430 million, and a $115 million gain on the sale of certain non-operated U.S. pipeline assets.

Net oil-equivalent production was up 93,000 barrels per day, or 6 percent. The increase was primarily due to higher production in the Permian Basin and Gulf of America, partly offset by lower production in the Rockies.

International upstream earnings decreased by $1.0 billion primarily due to lower affiliate earnings at TCO of $550 million, largely due to higher depreciation, depletion and amortization and lower realizations, partly offset by higher sales volumes, following Future Growth Project (FGP) start-up. Lower liftings of $320 million following asset sales and lower liquids realizations of $250 million also reduced earnings, which were partly offset by lower operating expenses of $130 million, mainly from asset sales.

Net oil-equivalent production was down 19,000 barrels per day, or 1 percent. The decrease was primarily due to asset sales in Canada and Republic of Congo, partly offset by higher production in Kazakhstan as FGP at TCO reached name-plate capacity.

International upstream earnings decreased by $2.3 billion primarily due to lower affiliate earnings at TCO of $910 million, largely due to higher depreciation, depletion and amortization and lower realizations, partly offset by higher sales volumes, following Future Growth Project (FGP) start-up. Lower liftings of $830 million following asset sales and lower liquids realizations of $550 million also reduced earnings. Foreign currency effects had an unfavorable impact on earnings of $157 million between periods.

Net oil-equivalent production was down 38,000 barrels per day, or 2 percent. The decrease was primarily due to asset sales in Canada and Republic of Congo, partly offset by higher production in Kazakhstan as FGP at TCO reached name-plate capacity.

Downstream

U.S. downstream earnings increased by $124 million primarily due to higher margins on refined product sales of $140 million and lower operating expenses of $100 million, partly offset by lower earnings from the 50 percent-owned Chevron Phillips Chemical Company (CPChem) of $150 million.

Refinery crude unit inputs were up 151,000 barrels per day, or 17 percent, primarily due to improved operational availability at the El Segundo, California refinery, the absence of the prior year turnaround at the Pascagoula, Mississippi refinery, and increased capacity at the Pasadena, Texas refinery upon completion of the Light Tight Oil project.

Refined product sales were up 54,000 barrels per day, or 4 percent compared to the year-ago period primarily due to higher demand for jet fuel and gasoline.

U.S. downstream earnings decreased by $226 million primarily due to lower earnings from CPChem of $220 million and lower margins on refined product sales of $110 million, partly offset by lower operating expenses of $100 million.

Refinery crude unit inputs were up 145,000 barrels per day, or 16 percent, primarily due to improved operational availability at the El Segundo, California refinery, the absence of the prior year turnaround at the Pascagoula, Mississippi refinery, and increased capacity at the Pasadena, Texas refinery upon completion of the Light Tight Oil project.

Refined product sales were up 49,000 barrels per day, or 4 percent compared to the year-ago period primarily due to higher demand for gasoline and jet fuel.

International downstream earnings increased by $16 million primarily due to higher margins on refined product sales of $190 million, partly offset by unfavorable tax impacts of $70 million. Foreign currency effects had an unfavorable impact on earnings of $101 million between periods.

Refinery crude unit inputs were up 11,000 barrels per day, or 2 percent, from the year-ago period.

Refined product sales were down 12,000 barrels per day, or 1 percent, from the year-ago period.

International downstream earnings decreased by $92 million primarily due to unfavorable foreign currency effects of $154 million and unfavorable tax impacts of $70 million, partly offset by higher margins on refined product sales of $130 million.

Refinery crude unit inputs were down 11,000 barrels per day, or 2 percent.

Refined product sales were down 21,000 barrels per day, or 1 percent.

All Other

Net charges increased by $341 million primarily due to an unfavorable fair market valuation adjustment for Hess shares, higher interest expense and pension curtailment costs, partly offset by the absence of prior year unfavorable tax effects.

Net charges increased by $403 million primarily due to higher interest expense and an unfavorable fair market valuation adjustment for Hess shares, partly offset by the absence of prior year unfavorable tax effects.

Consolidated Statement of Income

Explanations of variations between periods for selected income statement categories are provided below:

Sales and other operating revenues for second quarter 2025 decreased mainly due to lower refined product and crude oil prices and lower crude oil sales volumes, partially offset by higher natural gas prices and higher refined product and natural gas sales volumes. Sales and other operating revenues for the six-month period decreased mainly due to lower refined product and crude oil prices, partially offset by higher natural gas prices and higher refined product sales volumes.

Income from equity affiliates in second quarter and for the six-month period 2025 decreased mainly due to lower upstream-related earnings from TCO in Kazakhstan as higher liftings from the FGP project were more than offset by higher depreciation, depletion and amortization and lower realizations, and lower downstream-related earnings from CPChem primarily due to lower chemicals margins.

Other income (loss) for second quarter and for the six-month period 2025 decreased primarily due to an unfavorable swing in foreign currency effects, an unfavorable fair value adjustment for the investment in Hess common stock, and lower income from Venezuela, partially offset by higher income from the sale of non-operated U.S. pipeline assets.

Purchased crude oil and products decreased for second quarter 2025 primarily due to lower crude oil and refined product prices and lower refined product volume, partially offset by higher crude oil volume. Purchased crude oil and products decreased for the six-month period primarily due to lower crude oil and refined product prices and lower refined product volume, partially offset by higher natural gas prices and higher crude oil volume.

Operating, selling, general and administrative expenses in second quarter 2025 decreased slightly primarily due to lower expenses mainly from asset sales and lower materials and supplies expenses, partially offset by higher legal and casualty loss expenses. Operating, selling, general and administrative expenses for the six-month period slightly decreased, primarily driven by lower expenses due to asset sales and lower transportation and materials and supplies costs, partially offset by higher legal reserves.

Exploration expenses for second quarter 2025 decreased primarily due to lower dry hole expenses. Exploration expenses for the six-month period increased mainly driven by higher geological and geophysical engineering costs.

Depreciation, depletion and amortization expenses for second quarter and for the six-month period 2025 increased primarily due to higher rates and higher production.

Taxes other than on income forsecond quarterand for the six-month period 2025 increased primarily due to higher excise taxes related to downstream activities.

Interest and debt expenses for second quarterand for the six-month period 2025 increased mainly due to higher debt balance compared to last year.

Other components of net periodic benefit costs for second quarter for the six-month period 2025 were higher mainly due to higher pension curtailment charges.

The company’s decrease in income tax expense for second quarter 2025 of $1.0 billion was primarily due to the decrease in total income before tax of $2.9 billion.

U.S. income before tax decreased from $2.5 billion in second quarter 2024 to $1.1 billion in second quarter 2025. This $1.4 billion decrease in income was primarily driven by lower upstream realizations, higher upstream depreciation, depletion and amortization and lower downstream equity affiliate income, partially offset by higher upstream sales volumes. The decrease in income had a direct impact on the company’s U.S. income tax, resulting in a decrease in income tax expense of $388 million between year-over-year periods, from $688 million in 2024 to $300 million in 2025.

International income before tax decreased from $4.6 billion in second quarter 2024 to $3.0 billion in second quarter 2025. This $1.5 billion decrease in income was primarily driven by lower upstream equity affiliate income, asset sale impacts, lower upstream realizations and unfavorable foreign exchange impacts, partially offset by higher downstream margins. The decrease in income had a direct impact on the company’s international income tax, resulting in a decrease in income tax expense of $573 million between year-over-year periods, from $1.9 billion in 2024 to $1.3 billion in 2025.

The company’s decrease in income tax expense for the first six months of 2025 of $1.3 billion was primarily due to the decrease in the total income before tax of $5.2 billion.

U.S. income before tax decreased between the six-month periods, from $5.1 billion in 2024 to $3.0 billion in 2025. This $2.1 billion decrease in income was primarily driven by lower upstream realizations, higher upstream depreciation, depletion and amortization, higher operating expenses, lower downstream equity affiliate income and lower downstream margins, partially offset by higher upstream sales volumes. The decrease in income had a direct impact on the company’s U.S. income tax, resulting in a decrease in income tax expense of $511 million between the six-month periods, from $1.3 billion in 2024 to $801 million in 2025.

International income before tax decreased between the six-month periods, from $9.9 billion in 2024 to $6.7 billion in 2025. This $3.1 billion decrease in income was primarily driven by lower upstream equity affiliate income, asset sale impacts, lower upstream realizations and unfavorable foreign exchange impacts, partially offset by higher downstream margins. The decrease in income had a direct impact on the company’s international income tax, resulting in a decrease in income tax expense of $750 million between year-over-year periods, from $3.7 billion in 2024 to $2.9 billion in 2025.

Additional information related to the company’s effective income tax rate is included in Note 10 Income Taxes to the Consolidated Financial Statements.

Selected Operating Data

The following table presents a comparison of selected operating data:

Liquidity and Capital Resources

Cash, cash equivalents and marketable securities totaled $4.1 billion at June 30, 2025, and $6.8 billion at year-end 2024. The company holds its cash with a diverse group of major financial institutions and has processes and safeguards in place to manage its cash balances and mitigate the risk of loss. Cash provided by operating activities in the first six months of 2025 was $13.8 billion, compared with $13.1 billion in the year-ago period. Between January and March 2025, Chevron purchased 15.38 million shares of Hess common stock in open market transactions for approximately $2.2 billion. Capital expenditures totaled $7.6 billion in the first six months of 2025, down $416 million from the year-ago period largely due to lower spend in downstream. Proceeds and deposits related to asset sales and returns of investment totaled $990 million in the first six months of 2025, compared to $218 million in the year-ago period. Cash provided by financing activities includes proceeds from shares issued for stock option exercises of $229 million in the first six months of 2025, compared with $158 million in the year-ago period.

Dividends The company paid dividends of $5.9 billion to common stockholders during the first six months of 2025. In July 2025, the company declared a quarterly dividend of $1.71 per common share, payable in September 2025.

Debt and Finance Lease Liabilities Chevron’s total debt and finance lease liabilities were $29.5 billion at June 30, 2025, up from $24.5 billion at December 31, 2024, as the company issued $5.5 billion public bonds, retired $2.5 billion public bonds and increased commercial paper balances.

The company’s primary source for working capital needs is its commercial paper program. The outstanding balance for the company’s commercial paper program at June 30, 2025, was $7.5 billion, compared with $5.4 billion at December 31, 2024. The company’s debt and finance lease liabilities due within one year, consisting primarily of commercial paper, the current portion of long-term debt and redeemable long-term obligations, totaled $14.7 billion at June 30, 2025, and $12.7 billion at December 31, 2024. Of these amounts, $8.25 billion was reclassified to long-term at both June 30, 2025, and December 31, 2024. At June 30, 2025, settlement of these obligations was not expected to require the use of working capital within one year, as the company had the intent and the ability, as evidenced by committed credit facilities, to continually refinance them.

At June 30, 2025, the company had $8.25 billion in 364-day committed credit facilities with various major banks that enable the refinancing of short-term obligations. The credit facilities allow the company the option to convert outstanding short-term obligations into a term loan for a period of up to one year from the facilities termination date. This supports commercial paper borrowing and can also be used for general corporate purposes. The company’s practice has been to replace expiring commitments with new commitments on substantially the same terms, maintaining levels management believes appropriate. Any borrowings under the facilities would be unsecured indebtedness at interest rates based on the Secured Overnight Financing Rate (SOFR), or an average of base lending rates published by specified banks and on terms reflecting the company’s strong credit rating. No borrowings were outstanding under these facilities at June 30, 2025. In addition, the company has an automatic shelf registration statement that expires in November 2027 for an unspecified amount of nonconvertible debt securities issued by Chevron Corporation or CUSA.

The major debt rating agencies routinely evaluate the company’s debt, and the company’s cost of borrowing can increase or decrease depending on these debt ratings. The company has outstanding bonds issued by Chevron Corporation, CUSA, Texaco Capital Inc. and Noble Energy, Inc. Most of these securities are the obligations of, or guaranteed by, Chevron Corporation and are rated AA- by Standard and Poor’s Corporation (S&P) and Aa2 by Moody’s Investors Service (Moody’s). The company’s U.S. commercial paper is rated A-1+ by S&P and P-1 by Moody’s. All of these ratings denote high-quality, investment-grade securities.

The company’s future debt level is dependent primarily on results of operations, cash that may be generated from asset dispositions, the capital program, lending commitments to affiliates, and shareholder distributions. Based on its high-quality debt ratings, the company believes that it has substantial borrowing capacity to meet unanticipated cash requirements. During extended periods of low prices for crude oil and natural gas and narrow margins for refined products and commodity chemicals, the company has the flexibility to modify capital spending plans, discontinue or curtail the stock repurchase program, sell assets, and increase borrowings to continue paying the common stock dividend. The company remains committed to retaining high-quality debt ratings.

Summarized Financial Information for Guarantee of Securities of Subsidiaries CUSA issued bonds that are fully and unconditionally guaranteed on an unsecured basis by Chevron Corporation (together, the “Obligor Group”). The tables below contain summary financial information for Chevron Corporation, as Guarantor, excluding its consolidated subsidiaries, and CUSA, as the issuer, excluding its consolidated subsidiaries. The summary financial information of the Obligor Group is presented on a combined basis, and transactions between the combined entities have been eliminated. Financial information for non-guarantor entities has been excluded.

Common Stock Repurchase Program On January 25, 2023, the Board of Directors authorized the repurchase of the company’s shares of common stock in an aggregate amount of $75 billion (the “2023 Program”). The 2023 Program took effect on April 1, 2023, and does not have a fixed expiration date. In the aggregate, the company has repurchased 214.5 million shares for $32.9 billion under the 2023 Program, including 18.6 million shares repurchased for $2.6 billion in second quarter 2025. This excludes 15.38 million shares of Hess that were purchased for $2.2 billion in first quarter 2025 and cancelled in connection with the closing of the company’s acquisition of Hess. In addition, the company paid $146 million in excise taxes related to 2024 buybacks in second quarter 2025. Chevron expects share repurchases in the third quarter 2025 to be between $2.5-$3.0 billion.

Repurchases may be made from time to time in the open market, by block purchases, in privately negotiated transactions or in such other manner as determined by the company. The timing of the repurchases and the actual amount repurchased will depend on a variety of factors, including the market price of the company’s shares, general market and economic conditions, and other factors. The stock repurchase program and any forward guidance as to expected repurchases do not obligate the company to acquire any particular amount of common stock, and the program may be discontinued or resumed at any time.

Noncontrolling Interests The company had noncontrolling interests of $841 million at June 30, 2025, and $839 million at December 31, 2024.

Financial Ratios and Metrics

(1) At June 30, 2025, the book value of inventory was lower than replacement cost.

(2) Net Debt Ratio for June 30, 2025 is calculated as short-term debt of $6.2 billion plus long-term debt of $23.3 billion (together, “total debt”) less cash and cash equivalents, time deposits, and marketable securities of $4.1 billion as a percentage of total debt less cash and cash equivalents, time deposits, and marketable securities, plus Chevron Corporation Stockholders’ Equity of $146.4 billion. For the December 31, 2024 calculation, please refer to page 53 of Chevron’s 2024 Annual Report on Form 10-K.

Pension Obligations Information related to pension plan contributions is included in Note 8 Employee Benefits to the Consolidated Financial Statements.

Capital Expenditures The company’s capital expenditures (capex) primarily includes additions to fixed assets or investments for the company’s consolidated subsidiaries and is disclosed in the Consolidated Statement of Cash Flows. Capex was $7.6 billion in the first six months of 2025, compared with $8.1 billion in the corresponding 2024 period. Lower spend in downstream businesses was partly offset by the acquisition of lithium acreage.

Affiliate Capital Expenditures The company’s affiliate capital expenditures (affiliate capex) primarily includes additions to fixed assets or investments in the equity affiliate’s financial statements and does not require cash outlays by the company. Second quarter 2025 affiliate capex was $184 million lower than second quarter 2024 and year-to-date 2024 affiliate capex was $319 million lower than the year-ago period due to lower spend at TCO.

Contingencies and Significant Litigation

Climate Change Information related to climate change-related matters is included in Note 11 Litigation under the heading “Climate Change.”

Louisiana Information related to Louisiana coastal matters is included in Note 11 Litigation under the heading “Louisiana.”

Income Taxes Information related to income tax contingencies is included in Note 10 Income Taxes and in Note 12 Other Contingencies and Commitments under the heading “Income Taxes.”

Guarantees Information related to the company’s guarantees is included in Note 12 Other Contingencies and Commitments under the heading “Guarantees.”

Indemnification Information related to indemnification is included in Note 12 Other Contingencies and Commitments under the heading “Indemnification.”

Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements Information related to the company’s long-term unconditional purchase obligations and commitments is included in Note 12 Other Contingencies and Commitments under the heading “Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements.”

Environmental Information related to environmental matters is included in Note 12 Other Contingencies and Commitments under the heading “Environmental.”

Acquisition and Disposition of Assets Information related to the company’s acquisition and disposition of assets is included in Note 12 Other Contingencies and Commitments under the headings “Decommissioning Obligations for Previously Sold Assets” and “Other Contingencies.”

Other Contingencies Information related to the company’s other contingencies is included in Note 12 Other Contingencies and Commitments under the heading “Other Contingencies.”