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CVX reported Q1 EPS of $1.41, topping estimates, as global production climbed 15% year over year.
CVX's U.S. production surged 24%, supported by Hess assets and growth in Permian and Gulf projects.
Chevron's downstream segment posted a loss, hurt by weak margins, timing effects and higher costs.
Chevron Corporation (CVX - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, beating the Zacks Consensus Estimate of 92 cents. The outperformance stemmed from higher upstream production, particularly in the United States, following the integration of Hess assets and continued growth in the Gulf of America and the Permian Basin. Worldwide net oil-equivalent production increased year over year to 3,858 thousand barrels of oil equivalent per day (MOBE/d). U.S. production rose 24% year over year, remaining above 2 million oil-equivalent barrels per day for the third consecutive quarter.
However, the bottom line declined from the year-ago quarter’s adjusted profit of $2.18, due to weaker downstream performance, unfavorable timing effects, foreign currency headwinds and a 6.3% year-over-year increase in costs during this quarter.
The company generated revenues of $48.6 billion. The metric beat the Zacks Consensus Estimate of $47.4 billion and increased 2.1% year over year.
Chevron Corporation Price, Consensus and EPS Surprise
Upstream: Chevron’s upstream segment reported earnings of $3.9 billion, up from $3.8 billion in the year-ago quarter. The company’s production of crude oil and natural gas rose 15% year over year.
U.S. upstream earnings rose to $2.1 billion from $1.9 billion a year earlier, mainly due to higher sales volumes, partly offset by lower liquids realizations, higher depreciation, depletion and amortization, and increased operating expenses. U.S. net oil-equivalent production was 2,024 MBOE/d, up from 1,636 MBOE/d in the prior-year quarter. The increase was primarily driven by the Hess acquisition, higher output from Gulf of America project start-ups and growth in the Permian Basin. In the United States, liquids realization was $51.94 per barrel, down from $55.26 in the year-ago quarter. Natural gas realization was $2.48 per thousand cubic feet, compared with $2.50 in first-quarter 2025.
International upstream earnings decreased to $1.8 billion from $1.9 billion a year earlier, hurt by unfavorable timing effects, higher depreciation and unfavorable foreign currency effects, partly offset by higher sales volumes.
In International Upstream, net oil-equivalent production (accounting for 48% of the total) was 1,834 MBOE/d, up from 1,717 MBOE/d in the prior-year quarter. In international operations, liquids realization was $77.5 per barrel, up from $67.69 in the prior-year quarter. Natural gas realization was $6.99 per thousand cubic feet, compared with $7.12 a year ago.
Downstream: Chevron’s downstream segment recorded a loss of $817 million, in contrast to earnings of $325 million in the year-ago quarter. U.S. downstream earnings improved to $196 million from $103 million, supported by higher margins on refined product sales, partly offset by a higher litigation reserve.
International downstream posted a loss of $1 billion, in contrast to earnings of $222 million in the prior-year quarter. The decline was mainly due to lower margins on refined product sales, including unfavorable timing effects, and higher operating expenses, primarily from increased transportation costs.
CVX’s Cash Flows & Capital Expenditure
This Zacks Rank #1 (Strong Buy) company generated $2.5 billion in cash flow from operations during the first quarter of 2026, down from $5.2 billion in the prior-year quarter. Cash flow from operations, excluding working capital, was $7.1 billion.
The company reported a negative free cash flow of $1.5 billion, in contrast to the positive free cash flow of $1.3 billion a year earlier. Adjusted free cash flow was $4.1 billion, broadly in line with $4.2 billion in the year-ago quarter. Capital expenditure totaled $4.1 billion, up from $3.9 billion in the prior-year period, mainly due to spending on legacy Hess assets, partially offset by lower Permian Basin spending.
Chevron returned $6 billion of cash to its shareholders in the quarter, including $2.5 billion in share repurchases and $3.5 billion in dividends. Houston, TX-based integrated oil and gas company’s board declared a quarterly dividend of $1.78 per share to its common shareholders of record on May 19, 2026. The payout, which is unchanged from the previous quarter, will be made on June 10, 2026.
Total costs in the first-quarter increased about 6.3% year over year to $44.7 billion. As of March 31, 2026, the only energy component of the Dow Jones Industrial Average had $5.3 billion in cash and cash equivalents and total debt of $40.8 billion with a debt-to-total capitalization of about 17.8%.
Important Earnings at a Glance
While we have discussed CVX’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
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Chevron Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Chevron Corporation (CVX - Free Report) reported first-quarter 2026 adjusted earnings per share of $1.41, beating the Zacks Consensus Estimate of 92 cents. The outperformance stemmed from higher upstream production, particularly in the United States, following the integration of Hess assets and continued growth in the Gulf of America and the Permian Basin. Worldwide net oil-equivalent production increased year over year to 3,858 thousand barrels of oil equivalent per day (MOBE/d). U.S. production rose 24% year over year, remaining above 2 million oil-equivalent barrels per day for the third consecutive quarter.
However, the bottom line declined from the year-ago quarter’s adjusted profit of $2.18, due to weaker downstream performance, unfavorable timing effects, foreign currency headwinds and a 6.3% year-over-year increase in costs during this quarter.
The company generated revenues of $48.6 billion. The metric beat the Zacks Consensus Estimate of $47.4 billion and increased 2.1% year over year.
Chevron Corporation Price, Consensus and EPS Surprise
Chevron Corporation price-consensus-eps-surprise-chart | Chevron Corporation Quote
Segment Performance of CVX
Upstream: Chevron’s upstream segment reported earnings of $3.9 billion, up from $3.8 billion in the year-ago quarter. The company’s production of crude oil and natural gas rose 15% year over year.
U.S. upstream earnings rose to $2.1 billion from $1.9 billion a year earlier, mainly due to higher sales volumes, partly offset by lower liquids realizations, higher depreciation, depletion and amortization, and increased operating expenses. U.S. net oil-equivalent production was 2,024 MBOE/d, up from 1,636 MBOE/d in the prior-year quarter. The increase was primarily driven by the Hess acquisition, higher output from Gulf of America project start-ups and growth in the Permian Basin. In the United States, liquids realization was $51.94 per barrel, down from $55.26 in the year-ago quarter. Natural gas realization was $2.48 per thousand cubic feet, compared with $2.50 in first-quarter 2025.
International upstream earnings decreased to $1.8 billion from $1.9 billion a year earlier, hurt by unfavorable timing effects, higher depreciation and unfavorable foreign currency effects, partly offset by higher sales volumes.
In International Upstream, net oil-equivalent production (accounting for 48% of the total) was 1,834 MBOE/d, up from 1,717 MBOE/d in the prior-year quarter. In international operations, liquids realization was $77.5 per barrel, up from $67.69 in the prior-year quarter. Natural gas realization was $6.99 per thousand cubic feet, compared with $7.12 a year ago.
Downstream: Chevron’s downstream segment recorded a loss of $817 million, in contrast to earnings of $325 million in the year-ago quarter. U.S. downstream earnings improved to $196 million from $103 million, supported by higher margins on refined product sales, partly offset by a higher litigation reserve.
International downstream posted a loss of $1 billion, in contrast to earnings of $222 million in the prior-year quarter. The decline was mainly due to lower margins on refined product sales, including unfavorable timing effects, and higher operating expenses, primarily from increased transportation costs.
CVX’s Cash Flows & Capital Expenditure
This Zacks Rank #1 (Strong Buy) company generated $2.5 billion in cash flow from operations during the first quarter of 2026, down from $5.2 billion in the prior-year quarter. Cash flow from operations, excluding working capital, was $7.1 billion.
The company reported a negative free cash flow of $1.5 billion, in contrast to the positive free cash flow of $1.3 billion a year earlier. Adjusted free cash flow was $4.1 billion, broadly in line with $4.2 billion in the year-ago quarter. Capital expenditure totaled $4.1 billion, up from $3.9 billion in the prior-year period, mainly due to spending on legacy Hess assets, partially offset by lower Permian Basin spending.
Chevron returned $6 billion of cash to its shareholders in the quarter, including $2.5 billion in share repurchases and $3.5 billion in dividends. Houston, TX-based integrated oil and gas company’s board declared a quarterly dividend of $1.78 per share to its common shareholders of record on May 19, 2026. The payout, which is unchanged from the previous quarter, will be made on June 10, 2026.
You can see the complete list of today’s Zacks #1 Rank stocks here.
CVX’s Financials
Total costs in the first-quarter increased about 6.3% year over year to $44.7 billion. As of March 31, 2026, the only energy component of the Dow Jones Industrial Average had $5.3 billion in cash and cash equivalents and total debt of $40.8 billion with a debt-to-total capitalization of about 17.8%.
Important Earnings at a Glance
While we have discussed CVX’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.