The oil and gas giant is also planning to cut share buybacks in the second quarter.
The decline in commodity prices has been deeply reduced to Chevron’s first quarter profits as the country’s second largest integrated Super Mayor aims to return to its roots as a global oil and gas explorer.
Excluding $175 million in losses related to tax collection on UK profits and impairment charges associated with the $53 billion acquisition of former rival Hess in late 2023, Chevron’s first quarter revenue was $3.8 billion or $2.18 per share.
Analysts surveyed by FactSet had expected an adjusted profit of $2.15 per share against $49.06 billion in revenue.
“The recent macro uncertainty highlights the importance of cost and capital discipline,” Worth said. “Chevron has a track record of managing through uncertainty and product cycles, and long-standing financial priorities can guide you and win in any environment.”
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Last week, the former San Francisco-based oil giant announced plans to start oil and natural gas production from the Deep Sea Barrymore Project in the US Gulf. In August 2024, Chevron announced plans to move its headquarters to Houston, close to its upstream and refinery business, employing more than 7,000 people.
Worth also discussed the company’s downstream business in California. In California, Phillips 66 and Valero Energy have announced plans to close refinery operations due to the state’s strict reformulated gas program to reduce carbon emissions. Philip 66 recently closed its 139,000 bpd refinery complex near Los Angeles, but Valero announced plans to close its Benicia, California-based facility by the end of 2026.
“We’ve been quite vocal about the (climate-related) policies coming out of Sacramento, and it’s especially going to be nearly impossible to invest in California,” Worth said, adding that the former San Ramon-based oil giant in California has two big refineries in the state.
In response to analysts’ questions about oil and gas prices, Worth said it would buy back $2.755 billion in shares in the second quarter due to a slump in global commodity prices. The company’s stock buyback program totaled $3.9 billion in the first quarter.
In December 2024, Chevron sold interest in the Canadian Shale Play Project for $6.5 billion, in line with plans to sell aged assets and real estate of $10 to $15 billion by 2028.
Houston’s oil and gas excavators slowed fourth quarter production in equity play in the Permian Basin, cutting spending by $2 billion. That spending moratorium was 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, Wirth said.
During the May 2 trading session, West Texas intermediate oil prices fell 73 cents to $59.71. Henry Hub’s natural gas price rose 16 cents per MMBTU to $3.64. Chevron’s shares rose 1.73%, closing at $138.5 on the New York Stock Exchange.
