Oil major Chevron (CVX) has reported strong third-quarter financial results and record production following its acquisition of Hess Corp.
The Houston, Texas-based company reported earnings per share (EPS) of $1.85 U.S., which was ahead of the $1.71 U.S. expected on Wall Street.
Revenue of $49.73 billion U.S. topped consensus forecasts of $49.01 billion U.S.
Despite the top and bottom-line beats, Chevron’s profit in Q3 declined 21% year-over-year due to falling oil prices that are currently below $65 U.S. per barrel.
U.S. crude oil prices have dropped 16% this year as OPEC+ increases production and President Donald Trump’s tariffs have impacted global economic growth and energy demand.
Still, even with the lower prices, Chevron pumped a record 4.1 million barrels of crude oil per day during Q3, a 21% increase compared with the same period last year.
The higher production largely resulted from the Hess acquisition that was completed earlier this year, said the company.
Additionally, Chevron said that profits increased more than 300% to $638 million U.S. in its downstream American refining business, compared with $146 million U.S. in Q3 2024.
Refining profits increased due to higher margins on product sales, said the company.
Chevron’s capital expenditures increased 7% to $4.4 billion U.S. from a year ago due to spending on legacy Hess assets.
The company’s free cash flow increased nearly 50% to $7 billion U.S. year-over-year, also due mostly to the addition of Hess Corp.
CVX stock has gained 5% this year to trade at $153.52 U.S. per share.
