Key Takeaways

• Q1 adjusted earnings reached $3.8 billion, or $2.18 per share
• $6.9 billion returned to shareholders in Q1 via dividends and buybacks
• Oil production was flat quarter-over-quarter
• Buyback guidance reduced amid weak oil prices
• Net debt ratio stood strong at 14%, was below the target

Chevron Corp. (CVX) stock closed at $138.50 on May 2, rising 1.64% after the company reported first-quarter results.

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Image Source: Yahoo! Finance

Chevron posted adjusted earnings of $3.8 billion, or $2.18 per share, though headline earnings came in lower at $3.5 billion due to special charges. The oil major returned $6.9 billion to shareholders, even as it scaled back buyback guidance amid oil price weakness. Its next earnings date is between July 31 and Aug. 4, 2025.

Shareholder Payouts Stay Strong

Chevron maintained robust shareholder returns in Q1, distributing $6.9 billion through dividends and repurchases. However, it announced that buybacks would move to the lower end of its $10-20 billion annual range, now expected at a range of $2.5 to $3 billion in Q2. This reflects Chevron’s more cautious stance as oil markets face pressure from falling prices and trade tensions. Despite the trim, Chevron’s dividend yield remains attractive at 4.94%, supporting investor confidence.

Flat Production, But Growth Projects Advance

Chevron’s oil equivalent production held steady compared to Q4 2024, while adjusted upstream earnings were flat as well. The company’s Ballymore project in the Gulf of Mexico came online, contributing to Chevron’s plan to ramp up output to 300,000 barrels per day by 2026.

On the downstream side, earnings improved thanks to better refining margins and less maintenance activity. Chevron is also expanding its pipeline of future opportunities, having added over 11 million net exploration acres since last year.

Solid Balance Sheet Offsets Debt Increase

Chevron ended the quarter with a net debt ratio of 14%, well below its 20-25% target range. However, the company issued $5.5 billion in new long-term debt during Q1, which some analysts view as a possible drag on future flexibility.

Organic capital expenditure was $3.5 billion, marking the lowest quarterly spend in two years, while inorganic CapEx added another $400 million. This disciplined spending reflects Chevron’s focus on navigating current commodity headwinds.

Challenges From Oil Slump and Policy Pressures

Chevron faces mounting challenges as oil prices retreat, prompting its buyback reduction and testing its profitability. State policies in California continue to weigh on its refining operations, limiting investments in that market. Inflation is also driving cost pressures in its Power Ventures segment. While Chevron boasts a track record of managing through cycles, these issues pose risks for its near-term performance.

“In this shaky market, our shareholders should know—we’re built to handle it,” said Exxon CEO Darren Woods.https://t.co/EHkjP7YsJ1https://t.co/EHkjP7YsJ1 pic.twitter.com/2YLjPnbga6

— Art Berman (@aeberman12) May 2, 2025

Still, with strong cash flow, a sturdy balance sheet, and projects like Ballymore coming online, Chevron remains focused on delivering value through discipline and steady production growth.

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