Chevron earns $9.9 billion in third quarter as refining surges

What happened

Chevron reported third-quarter 2026 earnings of $9.9 billion on Friday 30 October, against $3.5 billion a year earlier, in a release filed with the SEC. ^{[1, 2, 3]}

Upstream, the oil and gas fields, earned $5.7 billion, against $3.3 billion. Downstream, the refineries and fuel sales, earned $4.9 billion, against $1.1 billion a year earlier. The company said the gain came mainly from higher margins on refined products and higher crude oil realizations. ^[1]

Why it matters

Refining did most of the lifting: downstream earned nearly as much as the fields, against about a third of it a year earlier, by the desk's arithmetic on the filed figures. In the quarter Chevron paid $3.5 billion in dividends and spent $2.5 billion buying back its shares, about $6.0 billion in all by the desk's arithmetic. ^[1]

Cash and spending

Cash flow from operations was $16.0 billion, against $9.4 billion a year earlier. Capital spending was $4.0 billion, against $4.4 billion, lower mainly because of less spending in the Permian Basin, the company said. It also cut total debt by a further $3.5 billion. ^[1]

Output, the war and Tengiz

Worldwide production was 3.98 million barrels of oil equivalent a day, against 4.09 million a year earlier. The company said output was lower mainly because of lower entitlements from higher prices and impacts from the Middle East conflict. US production was 2.04 million barrels a day, about level with a year earlier. ^[1]

Refined product sales outside the US decreased 9 percent 'due to supply disruptions from the Middle East conflict,' the release said. The release does not mention the Strait of Hormuz. Chevron said in its second-quarter report that the conflict had curtailed output in the Partitioned Zone between Saudi Arabia and Kuwait. ^{[1, 5]}

Cash flow was helped by 'increased cash distributions from Tengizchevroil' and a $1 billion loan repayment from it, the company said. US upstream also gained from the absence of the prior year's severance and transaction costs tied to the Hess acquisition. Brent averaged $97 a barrel in the quarter, against $69, according to Platts figures in the release. ^[1]

What settles it next

Chevron scheduled its call with analysts for 10:00 a.m. Central on Friday 30 October. Its next dividend is payable on Thursday 10 December to holders of record on Wednesday 18 November. ^[1]

The Bakken agreements, which the release says cut midstream costs there by about 50 percent, are expected to close by year-end 2026. Chevron said on Tuesday 6 October that it expects a one-time after-tax loss of about $3 billion to $4 billion at closing. ^{[1, 4]}

Who it reaches

Chevron (CVX) is direct: the results are its own filing. Hess Midstream (HESM) is adjacent: it is the counterparty to the Bakken agreements, under which Chevron hands over its stake and general partner position. ^{[1, 2, 4]}