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Chevron Corp. (NYSE:CVX) stock rose Friday after the energy giant reported better-than-expected third-quarter 2026 results, driven by stronger refining margins and higher oil prices.
The company reported record U.S. refinery crude throughput, stronger downstream earnings and a $7.8 billion reduction in net debt.
Chevron reported third-quarter adjusted earnings of $5.28 per share, beating analysts’ consensus estimate.
Revenue surged 35.4% year over year to $65.237 billion from $48.169 billion, topping Wall Street expectations.
GAAP earnings climbed to $9.924 billion, or $5.06 per diluted share, from $3.539 billion, or $1.82 per share, a year earlier.
Adjusted earnings jumped to $10.361 billion from $3.627 billion, while foreign currency effects reduced earnings by $143 million.
Worldwide net oil-equivalent production declined to 3.98 million barrels per day from 4.086 million a year earlier.
Chevron attributed the decline to lower production entitlements resulting from higher prices and disruptions related to the Middle East conflict, partly offset by record output at its operated Australian assets and higher Gulf of America production.
“Third quarter production was nearly four million barrels of oil equivalent per day despite anticipated entitlement impacts and planned turnarounds, highlighting sustained operating performance across the portfolio,” Chief Financial Officer Eimear Bonner said in prepared remarks.
U.S. upstream production reached 2.043 million barrels per day.
U.S. liquids realizations increased to $62.72 per barrel from $48.12, while international realizations rose to $86.09 from $63.16.
Chevron reported record quarterly natural gas production exceeding 9 billion cubic feet per day.
The Gulf of America achieved record deepwater production, while the Permian Basin delivered its sixth consecutive quarter above 1 million barrels of oil equivalent per day. TCO operated near full capacity.
Upstream earnings increased to $5.698 billion from $3.302 billion, including $3.293 billion from U.S. operations and $2.405 billion internationally.
Chevron also secured agreements to reduce Bakken midstream costs by approximately 50%.
Downstream earnings jumped to $4.931 billion from $1.137 billion, primarily reflecting stronger refined-product margins.
U.S. refinery crude throughput reached a record 1.093 million barrels per day, with utilization approaching 98%.
Operating cash flow totaled $16 billion, while free cash flow reached $12 billion and adjusted free cash flow stood at $14.2 billion.
Chevron returned $6 billion to shareholders, including $3.5 billion in dividends and $2.5 billion in share repurchases.
Higher commodity prices late in the quarter weighed on working capital, with management expecting additional timing effects as prices fluctuate.
Chevron’s Venezuela joint ventures plan to invest $7 billion over five years, targeting gross production of approximately 600,000 barrels per day by 2031.
Management expects the development program to be self-funding, with total costs below $20 per barrel.
For the fourth quarter, Chevron expects upstream turnarounds and downtime to reduce production by 175,000 to 225,000 barrels of oil equivalent per day.
The company also projects downstream turnaround costs of $400 million to $500 million after tax.
Chevron expects full-year 2026 capital expenditures to finish at the low end of its annual forecast.
The company also anticipates a one-time after-tax loss of approximately $3 billion to $4 billion related to the expected closing of the Hess Midstream transaction.
CVX Price Action: Chevron shares were trading up 1.83% at $235.70 at the time of publication on Friday. The stock is trading at a new 52-week high, according to market data.
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