Chevron’s First-Quarter Profit Drops as Oil Prices Slide

The oil and gas giant also plans to reduce its stock buybacks in the second quarter.

A motorist passes the pumps at a Chevron gas station in Oakland, Calif., on April 25, 2017. Ben Margot/AP Photo

Falling commodity prices cut deeply into Chevron Corp.’s first-quarter profits as the nation’s second-largest integrated supermajor seeks to return to its roots as a global oil and gas explorer.

For the period ended March 31, Chevron reported earnings of $3.5 billion, or $2 per share, down 36 percent from $5.5 billion, or $2.97 per share, in the first quarter of 2024. Total revenues fell 2.2 percent to $47.6 billion, compared with $48.7 billion a year ago.

Excluding a one-time $175 million loss related to a tax levy on United Kingdom profits and an impairment charge tied to its $53 billion acquisition of former rival Hess Corp. in late 2023, Chevron’s first-quarter earnings were $3.8 billion or $2.18 per share.

Analysts surveyed by FactSet had expected adjusted earnings of $2.15 per share on revenue of $49.06 billion.

During the company’s first-quarter conference call, CEO Mike Wirth told analysts that ongoing “macro uncertainty” had led the oil giant to cut its 2025 capital spending budget by an additional $2 billion and to target $2 billion to $3 billion in structural cost savings by the end of 2026. Rival supermajors ExxonMobil, Shell Oil, and BP have also lowered first-quarter earnings and implemented cost-saving measures in response to falling oil and gas prices.

“Recent macro uncertainty underscores the importance of cost and capital discipline,” Wirth said. “Chevron has a proven track record of managing through uncertainty and commodity cycles, and with longstanding financial priorities as our guide, we’re well-positioned to win in any environment.”

Wirth also highlighted the company’s recent major deep-water projects in the Gulf of America, the Tengiz oil field expansion in Kazakhstan, and leadership changes in February to better align the company’s upstream and downstream operations.

Last week, the former San Francisco-based oil giant announced plans to begin oil and natural gas production from its deep-water Ballymore project in the Gulf of America. In August 2024, Chevron announced plans to relocate its corporate headquarters to Houston, closer to its upstream and refining operations, where it employs more than 7,000 people.

Wirth said the Ballymore project represents another step toward the company’s goal to produce 300,000 net barrels per day of oil equivalent from the Gulf of America in 2026, a nod to President Donald Trump’s executive order on his first day in office to change the name of the deep-water gulf from Gulf of Mexico and make the United States less reliant on foreign energy.

Wirth also discussed the company’s downstream operations in California, where Phillips 66 and Valero Energy have announced plans to shutter their refinery operations due to the state’s stringent reformulated gas program to reduce carbon emissions. Phillip 66 recently shut its 139,000-bpd refinery complex near Los Angeles, while Valero has announced plans to shut down its Benicia, California-based facility by the end of 2026.

“We’ve been pretty vocal about the [climate-related] policy coming out of Sacramento. Particularly, it will make it nearly impossible to invest in California going forward,” said Wirth, adding that the former San Ramon, California-based oil giant has two large refineries in the state.

In response to analysts’ questions about oil and gas prices, Wirth said the company will buy back only $2.75 billion of its stock in the second quarter due to the downturn in global commodity prices. The company’s stock buyback program totaled $3.9 billion in the first quarter.

In December 2024, Chevron sold its interest in a Canadian shale play project for $6.5 billion, in line with plans to divest nearly $10 billion to $15 billion in aging assets and properties by 2028.

The Houston oil and gas driller also slowed production and cut spending by $2 billion in the fourth quarter in the Permian Basin share play. That spending pause is part of the company’s goal of generating $9 billion in free cash flow in 2026, up from $2.7 billion at the end of the first quarter, said Wirth.

In the May 2 trading session, the West Texas Intermediate oil prices fell 73 cents to $59.71. Natural gas prices at Henry Hub rose 16 cents to $3.64 per MMBtu. Chevron’s shares rose 1.73 percent to close at $138.5 on the New York Stock Exchange.