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 crude oil prices through 2025. Chevron is the only U.S. oil producer currently operating in Venezuela. Now in the spotlight due to the U.S.'s capture and removal of Nicolas Maduro, the former Venezuelan president this month, Chevron said that it would be evaluating other opportunities in Venezuela.
Chevron’s adjusted earnings were $1.52 per sharing for the three months ended December 31, beating out a LSEG consensus of $1.45. This figure is down from $2.06 per share a year ago.
The company believes that Venezuela has a significant potential for long-term growth.
"We've been a part Venezuela's history for more than 100 years. We are committed to the future of Venezuela. We are ready to assist it in building a "better future" while strengthening U.S. security and energy, CEO Mike Wirth stated.
In an interview, 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 more U.S. government approvals. She was repeating comments made at a meeting held earlier this month between President Donald Trump, oil executives and the CFO of Chevron.
Bonner said that the company will be careful with its spending as it evaluates investment opportunities.
She said, "As we continue to look for opportunities to grow, capital will remain a disciplined part of our business, as it always has been."
Bonner explained that Chevron uses a model of venture funding in Venezuela to fund its operations there with the cash generated. On Thursday, the Trump administration relaxed some sanctions against Venezuela in an effort to revive oil production.
TENGIZ OUTAGE, TURNAROUNDS TO AFFECT Q1 PRODUCTION
Chevron reported that scheduled maintenance and downtime, including at the Tengiz Oilfield in Kazakhstan as well as the attack on Caspian Pipeline Consortium which accounts 80% of the nation's oil exports, is expected to decrease first quarter production from 185,000 to 225,000 boepd.
Tengiz has been affected by multiple interruptions in the last two months due to electrical fires.
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Recent developments in the field of education
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In the U.S., frozen equipment at the Permian basin was reported by Chevron.
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.
Biraj Borkhataria of RBC Capital Markets said that the fourth quarter results showed resilience in business. Refining and upstream international production were ahead?of expectations.
Chevron paid out $12.8 billion as dividends and bought back $12.1 billion of shares in 2025, a figure that was below the company's target of $10 to $20 billion. Chevron anticipates that production will grow between 7% and 10% in 2026, excluding asset sale, thanks to projects in Guyana, the U.S. Gulf of Mexico, and other areas.
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 product sales.
The shares of Chevron traded flat before the market opened. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
(source: Reuters)
