-- Chevron (CVX) reported a surge in production for the first quarter of 2026 on Friday even as geopolitical tensions in the Middle East begin to weigh on international operations.
The company's US production exceeded 2 million oil-equivalent barrels per day for the third consecutive quarter.
The year-over-year production increase was largely attributed to the integration of Hess Corporation and continued momentum in the Permian Basin and the Gulf of Mexico.
These gains helped offset significant operational headwinds, including downtime at the 50 percent owned Tengizchevroil (TCO) affiliate and production curtailments in Israel and the Partitioned Zone between Saudi Arabia and Kuwait.
"We continue to closely monitor developments in the Middle East with a focus on the safety of our workforce and the integrity of our assets and operations," said Mike Wirth, Chevron's Chairman and Chief Executive Officer, acknowledging the regional volatility that has impacted the company's footprint.
Chevron's US upstream segment saw earnings rise, supported by a net oil-equivalent production increase of 388,000 barrels per day compared to the previous year.
In contrast, international upstream earnings were lower than year-ago levels.
Despite a volume boost of 117,000 barrels per day from the Hess acquisition, the segment was hampered by unfavorable foreign currency effects, higher depreciation costs, and the production dip at TCO.
The company's refining sector hit major milestones this quarter, with US refinery crude unit throughput maintaining levels over 1 million barrels per day for the fifth straight quarter, reaching an all-time record in March 2026.
In the US downstream segment earnings improved primarily due to higher refined product margins, though a higher litigation reserve capped the gains, Chevron noted.
The international downstream segment faced challenges, with earnings falling due to lower margins, unfavorable timing effects, and rising transportation costs, the company said.