Chevron Corporation (NYSE: CVX) beat Wall Street estimates of its second-quarter profit as Permian production surged and U.S. and worldwide oil and gas output jumped to record highs.
Chevron reported on Friday adjusted earnings of $3.1 billion, or $1.77 per share, for the second quarter of 2025, compared to adjusted earnings of $4.7 billion, or $2.55 per share, for the same period last year.
The decline was the result of lower realizations due to lower crude oil prices, lower income from upstream and downstream equity affiliates, and an unfavorable fair value adjustment for shares of Hess Corp, Chevron said.
Last month, Chevron finally completed the $53-billion acquisition of Hess Corporation after winning an arbitration case against Exxon over the Guyana assets of Hess.
Despite the more than 40% slump in adjusted earnings, Chevron beat the analyst consensus estimate as its EPS came in at $1.77, higher than the $1.73 earnings per share expected in the analyst consensus in the Wall Street Journal.
At Chevron, the lower oil prices were partly offset by record quarterly oil-equivalent production in the Permian and elsewhere and higher downstream earnings in both the U.S. and overseas, due to higher refining margins on refined product sales versus Q2 2024.
Worldwide and U.S. net oil-equivalent production set quarterly records, Chevron said.
Worldwide production rose thanks to a 34% jump at Kazakhstan’s Tengizchevroil venture, a 22% increase in the Gulf of Mexico production, and a 14% rise in Permian basin output.
Chevron’s oil and gas production in the Permian Basin rose to 1 million barrels of oil equivalent per day (boepd) in the second quarter.
The U.S. supemajor also boasted cash flow from operations, at similar commodity prices, at one of the highest levels in company history.
“Second quarter results reflect continued strong execution, record production, and exceptional cash generation,” Chevron’s chairman and CEO, Mike Wirth, said in a statement.
“The completion of the Hess acquisition further strengthens our diversified portfolio and positions us to extend our production and free cash flow growth profile well into the next decade.”
By Tsvetana Paraskova for Oilprice.com
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