Chevron Corp. Q1 FY2025 earnings call

• Delivered strong performance with multiple project start-ups and asset divestitures. Returned $6.9 billion to shareholders in Q1. Acquired nearly 5% of Hess's common shares. - 2025 CapEx and affiliate CapEx budgets reduced by $2 billion, targeting $2 billion to $3 billion in structural cost savings by end of next year. - TCO reached nameplate capacity in 30 days, expecting increased cash distributions. First oil at Ballymore in the Gulf of America, with production expected to reach 300,000 barrels of oil equivalent per day in 2026. - Pasadena refinery expansion strengthened Gulf Coast value chain. Progress on asset sale program with premium valuations. - Announced senior leadership appointments and operating model changes. Expanded exploration acres and advanced Power Solutions venture for U.S. AI data centers.

For the first quarter, Chevron reported earnings of $3.5 billion or $2 per share. Adjusted earnings were $3.8 billion or $2.18 per share. Organic CapEx was $3.5 billion, the lowest quarterly total in two years. Inorganic CapEx was approximately $400 million. Chevron generated cash flow from operations of $7.6 billion, excluding working capital. Adjusted upstream earnings were flat to last quarter, with higher realizations and timing effects offset by lower liftings and lower affiliate earnings mainly from higher DD&A at TCO. Adjusted downstream earnings were higher due to improved refining margins and lower turnarounds and maintenance. First quarter oil equivalent production was flat to last quarter, with production from TCO and recent Gulf of America projects offsetting asset sales impacts.

• Share repurchases expected to be $2.5 billion to $3 billion in Q2. - 2025 CapEx and affiliate CapEx budgets reduced by $2 billion from last year. - Targeting $2 billion to $3 billion in structural cost savings to be delivered by end of next year. - Buyback guidance range of $10 billion to $20 billion remains unchanged depending on market conditions.

• Macro uncertainty underscores importance of cost and capital discipline. - Potential supply tightness in California refining market due to policy actions. - Tariff impacts on costs, with limited direct exposure but monitoring evolving dynamics.

Q: Bob Brackett from Bernstein Research asked about tariff impact on CapEx/projects.

A: Mike Wirth said watching tariffs closely, limited direct exposure, strong domestic sourcing, manageable impact with preparation