Chevron Q4 profit beats estimates despite oil price pressure

In order to manage lower oil prices, Chevron concentrated on reducing expenses and increasing operational effectiveness.

As a result, the company's fourth-quarter profits decreased from the previous year but surpassed market forecasts.

For the three months ending December 31, the US oil giant posted adjusted earnings of $1.52 per share, exceeding analyst estimates of around $1.45 per share.

Even while efficiency efforts helped mitigate the impact, the report showed a reduction from $2.06 per share a year earlier, highlighting the pressure from a weaker price environment.

Venezuela in the geopolitical spotlight

Following the US capture and removal of former Venezuelan leader Nicolas Maduro this month, Chevron, the only American oil company currently operating in Venezuela, has drawn increased attention.

Against this backdrop, the company said it was assessing additional opportunities in the country.

Chevron said Venezuela holds significant long-term potential, noting that it has been part of the country’s history for nearly a century and remains committed to its present.

In a statement, Chief Executive Mike Wirth said, “We stand ready to help it build a better future while strengthening US energy and regional security.”

Chief Financial Officer Eimear Bonner said the company currently produces 250,000 barrels of oil equivalent per day in Venezuela, and that output could rise by as much as 50% over the next 18 to 24 months with additional authorisations from the US government.

She said Chevron would maintain a conservative approach to spending as it evaluates investment options.

“We will remain disciplined around capital, just as we always are, as we search for opportunities to grow,” she said.

The Trump administration eased certain sanctions on Venezuela on Thursday in an effort to boost the country’s oil production.

Fourth quarter production stable

In the fourth quarter, Chevron produced 4 million barrels of oil equivalent per day, which was greater than a year prior after acquiring the smaller oil company Hess, but unchanged from the previous quarter.

According to the corporation, it performed well in the US Gulf of Mexico, Kazakhstan, and the Permian Basin.

Due to decreased oil prices, upstream earnings fell 30% year over year to $3 billion in the fourth quarter.

Due to increased margins on sales of refined products, the company's downstream profitability increased to $823 million from a loss of $248 million the previous year.

Capital returns and outlook

At the lower end of its projected range of $10 billion to $20 billion, Chevron paid $12.8 billion in dividends and repurchased $12.1 billion of shares in 2025.

The company expects output to rise by 7% to 10% in 2026, driven mainly by projects in the US Gulf of Mexico and Guyana.

However, turnarounds and downtime are expected to reduce upstream production by 185,000 to 225,000 barrels of oil equivalent per day in the first quarter.

Downstream earnings could be $275 million to $325 million lower due to refinery turnarounds.