Chevron reported record US production and strong downstream results, while stressing capital efficiency, early cost savings, and a growing power business. The company also highlighted progress in Iraq, Venezuela, and Argentina, and gave an optimistic update on CPC pipeline flows despite regional tensions. Record US upstream production of 2.1 million boe/d and refinery throughput of 1 million bpd.
Chevron reported record US production and strong downstream results, while stressing capital efficiency, early cost savings, and a growing power business. The company also highlighted progress in Iraq, Venezuela, and Argentina, and gave an optimistic update on CPC pipeline flows despite regional tensions. Record US upstream production of 2.1 million boe/d and refinery throughput of 1 million bpd.
Chevron reported record US production and strong downstream results, while stressing capital efficiency, early cost savings, and a growing power business. The company also highlighted progress in Iraq, Venezuela, and Argentina, and gave an optimistic update on CPC pipeline…
Full-year capex is expected to finish at the lower end of the $18–19 billion guidance range, with Permian capex expected below $3.5 billion as capital efficiency improves. Longer-term capex remains in the $18–21 billion range and includes power projects like Kilby.
Achieved $3 billion structural cost savings ahead of schedule, 70% from efficiency gains.
Signed 20-year 2.67GW PPA with Microsoft for Project Kilby.
Management framed AI-driven electricity demand as a structural tailwind, using the Microsoft Project Kilby take-or-pay PPA as proof of a repeatable behind-the-meter power model. They also noted AI is being applied to improve exploration cycle times and shale and tight recovery.
Chevron's guidance tone is bullish, with strong performance across all segments, record production, early cost savings, and growth initiatives on track.
Full-year capex is expected to finish at the lower end of the $18–19 billion guidance range, with Permian capex expected below $3.5 billion as capital efficiency improves. Longer-term capex remains in the $18–21 billion range and includes power projects like Kilby.
Management repeatedly highlighted early target achievement, record operational performance, and a broader opportunity set, while reaffirming 2030 objectives.
“we have successfully increased the nameplate oil capacity from 3GP or the third generation plant from the original 260,000 barrels of oil per day to 320 and 320,000 barrels of oil per day.”
“continue to capture strong capital efficiencies in U.S. shale and tight and expect to spend 25% less capex per barrel of oil equivalent in 2026 compared to last year”
“We recently signed a 20-year take-or-pay power purchase agreement with Microsoft for 2.67 gigawatts of firm, behind the meter capacity supporting its co-located data center complex.”
“we achieved the $3 billion of structural cost reduction ahead of schedule. It's testament to all the teams around the organization.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2026 | $18B–$19Binline 컨센서스 대비 | $18.5B | MAINTAINED |
Project Kilby will provide 2.67 GW firm power to Microsoft, a first at this scale for the data center industry, indicating Chevron's execution advantage. — This secures a multi-billion-dollar revenue stream and sets a precedent for power providers in the AI data center market.
“We recently signed a 20-year take-or-pay power purchase agreement with Microsoft for 2.67 gigawatts of firm, behind the meter capacity”
… in action. We're leveraging advantage assets, customer relationships, execution capabilities, and partnerships to deliver reliable, affordable energy while creating long-term shareholder value. While many data center power projects have been announced, few have secured long-term customer commitments for behind the meter power, and only one is at multi-gigawatt scale, Project Kilby. This demonstrates our ability to execute at speed and scale. We recently signed a 20-year take-or-pay power purchase agreement with Microsoft for 2.67 gigawatts of firm, behind the meter capacity supporting its co-located data center complex. We're now focused on execution with permitting and EPC activities progressing towards a final investment decision later this year. Kilby is expected to deliver mid-teens returns and long duration contracted cash flows that are independent of commodity price cycles. Importantly, Kilby provides a repeatable model. We're already in an advanced discussions on additional opportunities with existing and potential customers for future projects. We've engaged closely with local stakeholders throughout development and have been encouraged by the strong support we've …
Chevron is securing turbine supply ahead of demand, indicating GEV has strong backlog visibility and pricing power in the power equipment market.
“We have some deep relationships with GE, Vernova, and other manufacturers. We're already talking to them about their cues.”
Hi, good morning. Thanks for taking my question. So my question is on the power business, and I appreciate the update and the detail on Kilby. My question is more about how you view the long term for Chevron and the power business. It sounds to me from Jeff's commentary that you're uniquely positioned to serve this market, and you mentioned potential future projects beyond Kilby. Can you talk about how much power could contribute to your business mix longer term, and how should we think about how it fits into the next decade plus of Chevron's growth story?
Yeah, sure. John, thanks for the question. We're very happy with the milestone that we achieved in June with Microsoft, high quality customer, 20 year firm, PPA. It really serves more than just that project. We do see a larger business potential here. You know, Kilby is a good proof point. It demonstrates that there's durable, very high customer demand. It demonstrates that this model, this behind-the-meter power model, works for customers. And it also shows that we bring capabilities which are differentiated in this market. In my comments, I spoke about the structural shift in power demand. Demand far exceeds supply. The grid cannot keep up with the demand from hyperscalers and others. And we see that persisting for years. Our capabilities are deep. Our large natural gas portfolio, our experience in natural gas markets across the country, our behind the meter power experience around the world in very remote areas where you don't have grid options. You must be behind the meter and you must do so at a very high reliability. Our complex project development and execution capabilities, these are very large. very large scale projects. Our customer relationships, partner relationships, and other stakeholders. To put all of that together takes a long list of capabilities and we bring those here. When we look to the future, turbine availability is tight. We have some deep relationships with GE, Vernova, and other manufacturers. We're already talking to them about their cues. I think the Kilby announcement strengthens our position in these discussions. and demonstrates that we're not just talking about potential projects, but we've converted an opportunity into an executable project. So we'll pursue additional opportunities. We already have some of those discussions well underway with existing and new customers and partners, but we'll also be disciplined as we move this forward and we'll always focus on value over growth.
Lukoil exiting West Qurna II opens opportunity for Chevron to grow its position in Iraq.
“You know, due to the and the circumstances Luko found itself in. It has stepped away from West Kurna II.”
Hess has surpassed synergy targets, delivering strong free cash flow ahead of schedule, improving the outlook for the combined entity.
… early with $3 billion of annual run rate savings since 2024. as synergy benefits have also been delivered also six months early. We continue to capture strong capital efficiencies in U.S. shale and tight and expect to spend 25% less capex per barrel of oil equivalent in 2026 compared to last year. And we strengthened our balance sheet to underpin long-term investment to deliver reliable energy the world will need for decades to come. This month also marks the one-year anniversary of the Hess Acquisition. We pulled value forward, capturing 50% more synergies than initially targeted, with $1.5 billion realized six months ahead of schedule. The HESS assets are generating strong free cash flow, which has been roughly double the incremental dividends and accretive to shareholders on a per share basis. This reflects the quality of the combined portfolio. Guyana is a world-class asset with significant resource depth, that is expected to extend high margin oil growth into the 2030s. In the Bakken, we're leveraging best practices from our shale and tight business to drive performance improvement, drilling laterals that are on average 28% longer, optimizing workovers, and applying …