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 increased by $2.0 billion primarily due to higher liquids realizations of $1.5 billion and lower operating expenses of $590 million, including the absence of prior year severance and transaction costs related to the Hess acquisition of $245 million.

Net oil-equivalent production was up 3,000 barrels per day from the year-ago period. The increase was primarily due to higher production in the Gulf of America, following project ramp-ups at Ballymore, Whale and Anchor, partly offset by lower production in the Bakken.

U.S. upstream earnings increased by $4.4 billion primarily due to higher liquids realizations of $3.5 billion and increased sales volumes of $2.2 billion, partly offset by higher depreciation, depletion and amortization of $1.2 billion.

Net oil-equivalent production was up 256,000 barrels per day, or 14 percent. The increase was primarily due to the acquisition of Hess and higher production in the Gulf of America following project start‑ups.

International upstream earnings increased by $385 million primarily due to higher realizations of $2.2 billion and higher liftings in Venezuela of $470 million, partly offset by unfavorable timing effects of $1.1 billion, unfavorable taxes of $310 million, unfavorable foreign currency effects of $222 million, a legal reserve of $160 million and an impairment charge of $110 million.

Net oil-equivalent production was down 109,000 barrels per day, or 5 percent. The decrease was primarily due to lower entitlements from higher prices and impacts from the conflict in the Middle East, partly offset by record production at operated assets in Australia and the inclusion of one month of Venezuela production following the switch to equity accounting.

International upstream earnings increased by $3.6 billion primarily due to higher realizations of $4.2 billion and increased sales volumes of $3.3 billion, partly offset by unfavorable timing effects of $1.7 billion, higher depreciation, depletion and amortization of $1.6 billion, and unfavorable taxes of $720 million.

Net oil-equivalent production was up 100,000 barrels per day, or 5 percent. The increase was primarily due to the acquisition of Hess, partly offset by lower production at TCO and curtailments in the Partitioned Zone between Saudi Arabia and Kuwait due to the Middle East conflict.

Downstream

U.S. downstream earnings increased by $2.9 billion primarily due to higher margins on refined product sales of $2.9 billion.

Refinery crude unit inputs were up 29,000 barrels per day, or 3 percent, compared to the year-ago period as refineries operated reliably at record levels near capacity.

Refined product sales were relatively flat compared to the year-ago period.

U.S. downstream earnings increased by $5.0 billion primarily due to higher margins on refined product sales of $5.0 billion and higher earnings from the 50 percent-owned affiliate, CPChem, of $390 million, partly offset by higher litigation reserves of $190 million.

Refinery crude unit inputs were up 29,000 barrels per day, or 3 percent, compared to the year-ago period as refineries operated reliably at near capacity levels.

Refined product sales were down 28,000 barrels per day, or 2 percent, compared to the year-ago period.

International downstream earnings increased by $847 million primarily due to higher margins on refined product sales of $1.1 billion, partly offset by unfavorable timing effects of $370 million.

Refinery crude unit inputs were relatively flat from the year-ago period.

Refined product sales were down 129,000 barrels per day, or 9 percent, compared to the year-ago period due to supply disruption from the Middle East conflict.

International downstream earnings increased by $1.7 billion primarily due to higher margins on refined product sales of $2.3 billion and asset sale gains of $260 million, partly offset by unfavorable timing effects of $1.0 billion.

Refinery crude unit inputs were down 22,000 barrels per day, or 3 percent, compared to the year-ago period primarily due to a turnaround at the Star Petroleum Refining Public Company Limited refinery in Thailand.

Refined product sales were down 75,000 barrels per day, or 5 percent, compared to the year-ago period due to supply disruption from the Middle East conflict.

All Other

Net charges decreased by $195 million primarily due to favorable tax items and lower interest expense, partly offset by the absence of a prior-year favorable fair value adjustment for Hess shares.

Net charges increased by $108 million primarily due to higher employee benefit costs and higher interest expense, partially offset by favorable tax items.

Consolidated Statement of Income

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

Sales and other operating revenues increased $17.1 billion for the third quarter mainly due to higher refined product and crude oil prices, partially offset by lower crude sales volumes. Sales and other operating revenues for the nine-month periods increased $41.3 billion primarily due to higher refined product and crude oil prices.

Income from equity affiliates in the third quarter and nine-month periods increased mainly due to higher upstream-related earnings from TCO in Kazakhstan and Petropiar in Venezuela following the transition to equity accounting on September 1, 2026, and higher downstream-related earnings primarily due to higher refining margins at GS Caltex in South Korea and chemicals margins at CPChem.

Other income for third quarter periods decreased primarily due to the absence of a prior year favorable fair value adjustment for Hess shares and foreign currency effects, partially offset by higher income from Venezuela. Other income for the nine-month periods increased primarily due to higher income from Venezuela, partially offset by the absence of the prior year asset sale gain.

Purchased crude oil and products increased $9.1 billion for the third quarter and $18.5 billion for the nine-month periods, primarily reflecting higher crude oil and refined product prices.

Operating, selling, general and administrative expenses for third quarter periods increased primarily due to higher transportation costs, partially offset by lower employee expenses. Operating, selling, general and administrative expenses for the nine-month periods increased primarily due to higher transportation costs and costs associated with the acquisition of Hess, partially offset by lower employee expenses.

Exploration expenses in third quarter decreased primarily due to lower geological and geophysical engineering costs. Exploration expenses for thenine-month periods decreased primarily due to lower dry hole expenses, partially offset by higher geological and geophysical engineering costs.

Depreciation, depletion and amortization expenses in third quarter increased primarily due to higher rates. Depreciation, depletion and amortization expenses for thenine-month periods increased primarily due to higher production, including from legacy Hess assets, and higher rates.

Taxes other than on income for third quarter and for thenine-month periods decreased primarily due to lower excise taxes related to downstream activities.

Interest and debt expenses in third quarter decreased due to lower debt balances compared to third quarter last year. Interest and debt expenses for the nine-month periods increased mainly due to higher average debt balances compared to the same period last year, including the debt assumed from the Hess acquisition.

Other components of net periodic benefit costs in third quarter and for the nine-month periods decreased mainly due to higher expected returns on plan assets.

The company’s increase in income tax expense for third quarter 2026 of $1.8 billion was primarily due to the increase in total income before tax of $8.2 billion.

U.S. income before tax increased from $1.3 billion in third quarter 2025 to $7.7 billion in third quarter 2026. This was driven by higher upstream liquids realizations, lower operating expenses, and higher downstream margins on refined product sales. The company’s U.S. income tax increased $1.3 billion between year-over-year periods, from $234 million in 2025 to $1.5 billion in 2026 primarily due to the increase in income.

International income before tax increased from $4.1 billion in third quarter 2025 to $6.0 billion in third quarter 2026. This $1.9 billion increase in income was primarily driven by higher upstream realizations and higher margins on refined product sales, partly offset by unfavorable timing effects. The company’s international income tax expense increased $0.5 billion between year-over-year periods, from $1.6 billion in 2025 to $2.1 billion in 2026, primarily due to the increase in income partially offset by mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions.

The company’s increase in income tax expense for the first nine months of 2026 of $4.2 billion was primarily due to the increase in the total before-tax income in 2026 of $19.1 billion, partially offset by mix effects resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions.

U.S. income before tax increased between the nine-month periods, from $4.3 billion in 2025 to $15.9 billion in 2026. This increase in income was primarily driven by increased upstream sales volumes, higher upstream liquids realizations, and higher margins on refined product sales partly offset by higher depreciation, depletion and amortization. The increase in income had a direct impact on the company’s U.S. income tax, resulting in an increase in tax expense of $2.4 billion between the nine-month periods, from $1.0 billion in 2025 to $3.4 billion in 2026.

International income before tax increased for the nine-month periods from $10.9 billion in 2025 to $18.4 billion in 2026. This increase in income was primarily driven by increased upstream sales volumes, higher upstream liquids realizations, and higher margins on refined product sales, partly offset by higher depreciation, depletion and amortization and unfavorable timing effects. The increase in income partly offset by mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions, primarily drove the $1.8 billion increase in international income tax expense between year-over-year periods, from $4.5 billion in 2025 to $6.3 billion in 2026.

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 $12.8 billion at September 30, 2026, and $6.3 billion at year-end 2025. 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 nine months of 2026 was $41.2 billion, compared with $23.2 billion in the year-ago period, primarily reflecting higher commodity prices, downstream margins, and increased cash distributions from TCO. Capital expenditures totaled $12.6 billion in the first nine months of 2026, compared with $12.1 billion in the year-ago period. Proceeds and deposits related to asset sales and returns of investment totaled $1.1 billion in the first nine months of 2026, compared to $1.5 billion in the year-ago period. Net repayment (borrowing) of loans by equity affiliates included a net inflow of $2.0 billion in the first nine months of 2026, mainly due to loan repayments from TCO, compared with $798 million in the year-ago period.

Dividends The company paid dividends of $10.5 billion to common stockholders during the first nine months of 2026. In October 2026, the company declared a quarterly dividend of $1.78 per common share, payable in December 2026.

Debt and Finance Lease Liabilities Chevron’s total debt and finance lease liabilities were $33.5 billion at September 30, 2026, down from $40.8 billion at December 31, 2025. The decrease was primarily due to maturing long-term notes, a finance lease repayment, and lower 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 September 30, 2026, was $808 million, compared with $4.6 billion at December 31, 2025. 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 $9.6 billion at September 30, 2026, and $10.9 billion at December 31, 2025. Of these amounts, $8.9 billion at September 30, 2026, and $9.9 billion at December 31, 2025, were reclassified to long-term debt. At September 30, 2026, 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 September 30, 2026, the company had $11.4 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 September 30, 2026. 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., Noble Energy, Inc., and Hess Corporation. The securities that are the obligations of, or guaranteed by, Chevron Corporation carry an AA- rating by Standard and Poor’s Corporation (S&P) and an Aa2 rating 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, loan repayments from 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 294 million shares for $46.5 billion under the 2023 Program, including 12.9 million shares repurchased for $2.5 billion in third quarter 2026. Chevron expects share repurchases in fourth quarter 2026 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 $5.7 billion at both September 30, 2026, and December 31, 2025, including non-controlling interest in Hess Midstream LP.

Financial Ratios and Metrics

(1) At September 30, 2026, the book value of inventory was lower than replacement cost.

(2) Net Debt Ratio for September 30, 2026, is calculated as short-term debt of $0.7 billion plus long-term debt of $32.8 billion (together, “total debt”) less cash and cash equivalents, time deposits, and marketable securities of $12.8 billion as a percentage of total debt less cash and cash equivalents, time deposits, and marketable securities, plus Chevron Corporation Stockholders’ Equity of $194.3 billion. For the December 31, 2025, calculation, please refer to page 52 of Chevron’s 2025 Annual Report on Form 10-K.

(3) Net debt-to-CFFO for September 30, 2026, is calculated as short-term debt of $0.7 billion plus long-term debt of $32.8 billion (together, “total debt”) less cash and cash equivalents, time deposits, and marketable securities of $12.8 billion divided by net cash provided by operating activities (CFFO) for the trailing 12 months of $52.0 billion. For the December 31, 2025, calculation, please refer to page 52 of Chevron’s 2025 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 include additions to fixed assets or investments for the company’s consolidated subsidiaries and are disclosed in the Consolidated Statement of Cash Flows. Capex in the first nine months of 2026 was $529 million higher than the prior year primarily due to spend associated with legacy Hess assets, partially offset by lower spend in the Permian Basin.

Affiliate Capital Expenditures The company’s affiliate capital expenditures (affiliate capex) primarily include additions to fixed assets or investments in the equity affiliate’s financial statements and do not require cash outlays by the company. Affiliate capex in the first nine months of 2026 was $441 million lower than the prior year primarily due to lower spend at CPChem and 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 Divested 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.”