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Chevron beat Q2 earnings estimates as higher prices, Hess assets and refining margins boosted results.
CVX increased worldwide production 20% year over year to 4,070 MBOE/d, topping consensus estimates.
CVX generated record free cash flow, cut debt by $8.4 billion and returned $6.62 billion to shareholders.
Chevron Corporation (CVX - Free Report) reported second-quarter 2026 adjusted earnings of $6.06 per share, which beat the Zacks Consensus Estimate of $5.80 by 4.5%. The outperformance was driven by higher commodity prices, increased upstream production following the Hess acquisition, stronger refined-product margins and higher sales volumes.
Worldwide net oil-equivalent production increased 20% year over year to 4,070 thousand barrels of oil equivalent per day (MBOE/d), reflecting contributions from legacy Hess assets and growth in the Permian Basin and the Gulf of America. This net oil-equivalent production also beat the consensus mark of 4,048 MBOE/d. Moreover, the bottom line surged from the year-ago adjusted earnings of $1.77 per share.
The company generated revenues of $70.06 billion. The metric beat the Zacks Consensus Estimate of $57.53 billion and increased 56.3% year over year. The increase was primarily driven by a 51.4% year-over-year increase in sales and other operating revenues, along with a 296.5% rise in income from equity affiliates.
Chevron Corporation Price, Consensus and EPS Surprise
Upstream: Chevron's upstream segment reported earnings of $8.18 billion, up from $2.73 billion in the year-ago quarter.
U.S. upstream earnings rose to $3.54 billion from $1.42 billion a year earlier, mainly due to higher liquids realizations and sales volumes. U.S. net oil-equivalent production reached a record 2,077 MBOE/d, up from 1,695 MBOE/d in the prior-year quarter. The increase was primarily driven by contributions from the Hess acquisition and production growth in the Permian Basin and the Gulf of America. Additionally, the reported figure beat our consensus estimate of 2,047 MBOE/d. In the United States, liquids realization improved to $70.80 per barrel from $47.77 a year earlier, while natural gas realization declined to 91 cents per thousand cubic feet from $1.75.
International upstream earnings increased to $4.64 billion from $1.31 billion a year earlier,primarily due to higher sales volumes, stronger liquids realizations and favorable timing effects. International net oil-equivalent production, which accounted for approximately 49% of total output, increased to 1,993 MBOE/d from 1,701 MBOE/d in the year-ago quarter. However, the reported figure came in slightly below our consensus estimate of 2,001 MBOE/d. Liquids realization increased to $96.41 per barrel from $58.88, beating our consensus estimate by 1.1%. Natural gas realization improved to $7.84 per thousand cubic feet from $7.20 but missed our consensus estimate by 18.5%.
Downstream: Chevron's downstream segment generated earnings of $4.87 billion, up from $737 million in the year-ago quarter.
U.S. downstream earnings increased to $2.41 billion from $404 million, primarily due to stronger refined-product margins and earnings from Chevron Phillips Chemical Company LLC.Refinery crude unit inputs increased to a record 1.07 million barrels per day from 1.05 million barrels per day a year earlier as refineries operated reliably near full capacity.
International downstream earnings rose to $2.46 billion from $333 million in the year-ago quarter, mainly due to higher refined-product margins, favorable timing effects, an asset sale gain and favorable foreign currency effects. Refinery crude unit inputs declined to 598 thousand barrels per day from 661 thousand barrels per day, while refined product sales fell to 1,287 thousand barrels per day from 1,473 thousand barrels per day because of supply disruptions related to the Middle East conflict and lower demand for gasoline and diesel.
CVX's Cash Flows & Capital Expenditure
Chevron generated $22.63 billion in cash flow from operating activities during the second quarter of 2026, up from $8.58 billion in the prior-year quarter. Cash flow from operations, excluding working capital, was $19.69 billion.
The company reported free cash flow of $18.1 billion, up from $4.86 billion a year earlier. Adjusted free cash flow was $15.43 billion compared with $4.87 billion in the year-ago quarter. Capital expenditure totaled $4.54 billion, up from $3.71 billion in the prior-yearperiod, mainly due to spending on legacy Hess assets. However, the reported figure came in 3.2% below our consensus estimate.
Chevron returned $3.12 billion through share repurchases and $3.50 billion through dividends during the quarter. The company's board declared a quarterly dividend of $1.78 per share, payable on Sept. 10, 2026, to shareholders of record as of Aug. 19, 2026.
CVX's Financials
Total costs in the second quarter increased about 31.2% year over year to $53.4 billion. As of June 30, 2026, the only energy component of the Dow Jones Industrial Average had $8.53 billion in cash and cash equivalents and total debt of $37.1 billion with a debt-to-total capitalization of about 16.3%. During the quarter, this Zacks Rank #3 (Hold) company reduced total debt by a record $8.4 billion, further strengthening its balance sheet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed CVX’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
Range Resources’ net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. It repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
View the Zacks #1 Rank List
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CVX Q2 Earnings Beat on Higher Output & Strong Refining Margins
Key Takeaways
Chevron Corporation (CVX - Free Report) reported second-quarter 2026 adjusted earnings of $6.06 per share, which beat the Zacks Consensus Estimate of $5.80 by 4.5%. The outperformance was driven by higher commodity prices, increased upstream production following the Hess acquisition, stronger refined-product margins and higher sales volumes.
Worldwide net oil-equivalent production increased 20% year over year to 4,070 thousand barrels of oil equivalent per day (MBOE/d), reflecting contributions from legacy Hess assets and growth in the Permian Basin and the Gulf of America. This net oil-equivalent production also beat the consensus mark of 4,048 MBOE/d. Moreover, the bottom line surged from the year-ago adjusted earnings of $1.77 per share.
The company generated revenues of $70.06 billion. The metric beat the Zacks Consensus Estimate of $57.53 billion and increased 56.3% year over year. The increase was primarily driven by a 51.4% year-over-year increase in sales and other operating revenues, along with a 296.5% rise in income from equity affiliates.
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 $8.18 billion, up from $2.73 billion in the year-ago quarter.
U.S. upstream earnings rose to $3.54 billion from $1.42 billion a year earlier, mainly due to higher liquids realizations and sales volumes. U.S. net oil-equivalent production reached a record 2,077 MBOE/d, up from 1,695 MBOE/d in the prior-year quarter. The increase was primarily driven by contributions from the Hess acquisition and production growth in the Permian Basin and the Gulf of America. Additionally, the reported figure beat our consensus estimate of 2,047 MBOE/d. In the United States, liquids realization improved to $70.80 per barrel from $47.77 a year earlier, while natural gas realization declined to 91 cents per thousand cubic feet from $1.75.
International upstream earnings increased to $4.64 billion from $1.31 billion a year earlier,primarily due to higher sales volumes, stronger liquids realizations and favorable timing effects. International net oil-equivalent production, which accounted for approximately 49% of total output, increased to 1,993 MBOE/d from 1,701 MBOE/d in the year-ago quarter. However, the reported figure came in slightly below our consensus estimate of 2,001 MBOE/d. Liquids realization increased to $96.41 per barrel from $58.88, beating our consensus estimate by 1.1%. Natural gas realization improved to $7.84 per thousand cubic feet from $7.20 but missed our consensus estimate by 18.5%.
Downstream: Chevron's downstream segment generated earnings of $4.87 billion, up from $737 million in the year-ago quarter.
U.S. downstream earnings increased to $2.41 billion from $404 million, primarily due to stronger refined-product margins and earnings from Chevron Phillips Chemical Company LLC.Refinery crude unit inputs increased to a record 1.07 million barrels per day from 1.05 million barrels per day a year earlier as refineries operated reliably near full capacity.
International downstream earnings rose to $2.46 billion from $333 million in the year-ago quarter, mainly due to higher refined-product margins, favorable timing effects, an asset sale gain and favorable foreign currency effects. Refinery crude unit inputs declined to 598 thousand barrels per day from 661 thousand barrels per day, while refined product sales fell to 1,287 thousand barrels per day from 1,473 thousand barrels per day because of supply disruptions related to the Middle East conflict and lower demand for gasoline and diesel.
CVX's Cash Flows & Capital Expenditure
Chevron generated $22.63 billion in cash flow from operating activities during the second quarter of 2026, up from $8.58 billion in the prior-year quarter. Cash flow from operations, excluding working capital, was $19.69 billion.
The company reported free cash flow of $18.1 billion, up from $4.86 billion a year earlier. Adjusted free cash flow was $15.43 billion compared with $4.87 billion in the year-ago quarter. Capital expenditure totaled $4.54 billion, up from $3.71 billion in the prior-yearperiod, mainly due to spending on legacy Hess assets. However, the reported figure came in 3.2% below our consensus estimate.
Chevron returned $3.12 billion through share repurchases and $3.50 billion through dividends during the quarter. The company's board declared a quarterly dividend of $1.78 per share, payable on Sept. 10, 2026, to shareholders of record as of Aug. 19, 2026.
CVX's Financials
Total costs in the second quarter increased about 31.2% year over year to $53.4 billion. As of June 30, 2026, the only energy component of the Dow Jones Industrial Average had $8.53 billion in cash and cash equivalents and total debt of $37.1 billion with a debt-to-total capitalization of about 16.3%. During the quarter, this Zacks Rank #3 (Hold) company reduced total debt by a record $8.4 billion, further strengthening its balance sheet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed CVX’s second-quarter results in detail, let us take a look at three other key reports in this space.
Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
Range Resources’ net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. It repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.