Chevron Tops Q4 Earnings Estimates, Lags Revenues, Hikes Dividend

Chevron Corporation CVX reported adjusted fourth-quarter earnings per share of $1.52, beating the Zacks Consensus Estimate of $1.44. The outperformance stemmed from higher-than-expected production in the company’s key upstream segment and an 8% year-over-year reduction in costs during this quarter. The company’s upstream output of 4,045 thousand oil-equivalent barrels per day (MBOE/d) came in above the consensus mark of 4,009 MBOE/d. However, the bottom line came well below the year-ago adjusted profit of $2.06, primarily due to a decline in crude oil prices, reduced affiliate earnings and unfavorable foreign currency effects.The company generated revenues of $46.9 billion. The sales figure missed the Zacks Consensus Estimate of $51.4 billion and decreased 10.2% year over year.Chevron Corporation Price, Consensus and EPS Surprise Chevron Corporation price-consensus-eps-surprise-chart | Chevron Corporation QuoteImportantly,  Houston, TX-based integrated oil and gas company hiked its quarterly cash dividend by 4% to $1.78 per share. The dividend will be paid out on March 10, 2026, to its shareholders of record as of Feb. 17.Segment Performance of CVXUpstream: Chevron’s production of crude oil and natural gas — at 4,045 MBOE/d — rose 21% year over year. Recent volume figures mainly highlight higher output from the Permian Basin, the Gulf of America and Kazakhstan.The U.S. output increased 25% year over year to an all-time high of 2,055 MBOE/d and the company’s international operations (accounting for 49% of the total) also increased 17% to 1,990 MBOE/d.Despite overall volumes improving from last year, Chevron’s fourth-quarter 2025 upstream segment profit fell 29% to $3 billion. This was primarily due to lower liquid realizations. At $42.99 per barrel, Chevron’s average realized liquids prices in the United States were more than 19%, which was below the year-earlier levels. Prices overseas decreased 15% to $57.53 per barrel. Natural gas prices surged 36% in the United States, while falling 9% across international markets.Downstream: Chevron’s downstream segment recorded a profit of $823 million in contrast to a loss of $248 million in the previous year. The gain primarily underlined higher product sales margins.CVX’s Cash Flows, Capital ExpenditureThe company recorded $10.8 billion in cash flow from operations compared with $8.7 billion in the year-ago period. Chevron’s free cash flow for the quarter was $4.2 billion.The company distributed a total of $27.1 billion in cash to its shareholders over this year. This amount included $12.1 billion for share repurchases, $12.8 billion in dividends and $2.2 billion spent on acquiring Hess shares in early 2025.This Zacks Rank #4 (Sell) company spent around $5.3 billion in capital and exploratory expenditures during the quarter compared with the year-ago period’s $4.3 billion. The increase was due to spending on legacy Hess assets following the acquisition, as well as higher investments in U.S. data center power solutions.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CVX’s FinancialsTotal costs in the fourth-quarter decreased about 8% year over year to $44.3 billion. As of Dec. 31, 2025, the only energy component of the Dow Jones Industrial Average had $6.3 billion in cash and cash equivalents and total debt of $40.8 billion with a debt-to-total capitalization of about 17.9%.Important Earnings at a GlanceWhile we have discussed CVX’s fourth-quarter results in detail, let us take a look at three other key reports in this space.San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.Houston, TX-based Baker Hughes Company BKR, an oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.Another Houston, TX-based oil and gas equipment and services provider, Halliburton Company HAL, posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks