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Chevron Tops Q1 Earnings Estimates on Strong Production, Refining Results, TPH Says

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Chevron (CVX) reported stronger-than-expected Q1 earnings, driven by solid performance in both its oil production and refining businesses, alongside disciplined spending and higher cash returns to shareholders, TPH Energy Research analyst Jeoffrey Lambujon said in a Friday note.

The company posted adjusted earnings of $1.41 per share, well above analyst expectations of $0.87 to $0.92.

The upstream segment, which covers oil and gas production, delivered $4.14 billion in adjusted earnings, beating forecasts and accounting for over half of the overall earnings surprise. Results were led by international operations.

Production totaled 3.86 million barrels of oil equivalent per day, broadly in line with expectations.

Downstream operations, which include refining and fuels, posted a smaller loss of $470 million, also better than expected, helped by stronger US refining results. That segment accounted for roughly 40% of the total earnings beat.

Capital spending came in at $4.06 billion, below analyst estimates, reflecting tighter project execution and cost control. Operating cash flow before working capital changes was $7.14 billion, slightly below some forecasts but supported by a $1 billion inflow from equity affiliate loan activity tied to the Tengizchevroil project, a joint venture project at Kazakhstan's Tengiz oil field.

After adjustments, free cash flow totaled $4.13 billion for the quarter.

The company returned $6.0 billion to shareholders during the period, including $2.5 billion in share buybacks and about $3.5 billion in dividends. The dividend policy remains unchanged at $1.78 per share following a roughly 4% increase announced earlier this year.

Chevron kept its full-year 2026 guidance steady, with capital spending expected between $18 billion and $19 billion and production forecast at 3.98 to 4.10 million barrels of oil equivalent per day. Management said cost-reduction efforts remain on track.

Looking ahead, the company highlighted continued operational momentum into the second quarter, supported by high utilization across key assets, including projects in Australia LNG, the Eastern Mediterranean, and Kazakhstan.

Chevron also pointed to progress in heavy oil operations in Venezuela and a recently expanded agreement related to power infrastructure development with Microsoft (MSFT).

Price: $190.69, Change: $-2.63, Percent Change: -1.36%

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