Chevron beats Q4 profit estimate, eyes Venezuela investment opportunities
Chevron's profits for the fourth quarter fell, but were still higher than expected. The company focused on reducing costs and improving its efficiency to "contain" lower crude oil prices through 2025.
Chevron, the only U.S. producer of oil currently operating in Venezuela is now in the spotlight due to the U.S. capture and removal of Nicolas Maduro as Venezuelan president this month. The company also announced on Friday it was evaluating other opportunities in the nation.
Chevron’s adjusted earnings were $1.52 for the three-month end of December period, which was ahead of a LSEG consensus of $1.45.
This figure is down from $2.06 per year ago.
Chevron stated that Venezuela has significant potential for the long term.
"We've been part of Venezuela’s past for over a century. We are?committed to the future of Venezuela. We are ready to assist it in building a better tomorrow while strengthening U.S. security and energy, said CEO Mike Wirth.
In an interview, Chevron's CFO Eimear Boner said that the company produces 250,000 barrels equivalent to oil per day in Venezuela. With additional U.S. government approvals, this figure could be increased by 50% within 18-24 months.
She was repeating comments made at a White House gathering between President Donald Trump, and oil executives in early this month.
Bonner said that the company will be careful in its spending as it evaluates investment opportunities.
She said, "As opportunities for growth arise, we will remain disciplined in our capital management, as we have always done."
On Thursday, the Trump administration eased some sanctions against Venezuela in an effort to revive oil production.
The total oil production was flat in Q4.
Chevron produced 4 million?boepd of oil during the fourth quarter. This was flat with the previous quarter but higher than last year, after the company?purchased the smaller oil firm Hess.
The company reported strong performance in Kazakhstan, Permian basin and Gulf of Mexico.
The company paid $12.8 billion in dividends and bought back $12.1 billion of shares in 2025, which was at the lower end of its guidance between $10 billion to $20 billion.
Chevron anticipates that production will grow between 7% and 10% in 2026, thanks in part to projects in Guyana as well as the Gulf of Mexico in the U.S.
In the fourth quarter, upstream earnings fell 30% on an annual basis to $3 billion. The company's downstream earnings increased from $248 million to $823 million. The company reported higher margins for refined products. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
(source: Reuters)
