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 cutting costs to make its operations more efficient in order to compete with lower oil prices through 2025.
Only U.S. oil producer currently operating in Venezuela, and in the spotlight of geopolitics after the 'U.S. Chevron said that after the capture and removal of Nicolas Maduro, Venezuela's former leader this month, it is evaluating other opportunities in Venezuela.
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 has said that Venezuela is a country with a significant long-term future.
"We have 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.
Chevron's CFO Eimear Bonner said that the company produces 250,000 barrels equivalent to oil per day in Venezuela. This figure could be increased by 50% in 18-24 months with additional U.S. government approvals.
She was repeating comments made during a meeting at the White House between?President Donald Trump earlier this month and oil executives.
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 relaxed some sanctions against Venezuela in an effort to revive oil production.
Q4: TOTAL OIL RESOURCES FALLED IN?Q4
Chevron produced 4 million barrels of oil per day 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 out $12.8 billion in dividends and bought back $12.1 billion in shares in 2025, which was at the lower end of its guidance range of $10 billion to $20 billion.
Chevron anticipates a 7%-10% increase in production by 2026, thanks in part to projects in Guyana and in the U.S. Gulf of Mexico.
Turnarounds and downtime at refineries are expected to lower Chevron’s upstream production in the first quarter by between?185,000 and 225,000 boepd. Downstream earnings could also be reduced by $275 to $325 due to turnarounds.
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. Reporting by Sheila Dang and Vallari Srivastava, both in Houston; editing by Nathan Crooks, Edwinn Gibbs and Edwinna Gibbs.
(source: Reuters)
