Chevron (CVX) reported strong third-quarter earnings, highlighting robust cash generation and operational resilience despite market risks. The company posted earnings of $9.9 billion, or $5.06 per share, with adjusted earnings reaching $10.4 billion, or $5.28 per share. Cash flow from operations excluding working capital was $16.6 billion, and adjusted free cash flow totaled $14.2 billion. Chevron also reduced debt by more than $3 billion and increased cash by over $4 billion during the quarter, improving its net debt to cash flow ratio to 0.4 times.
Production remained resilient, with third-quarter output nearing 4 million barrels of oil equivalent per day. Chevron achieved record natural gas production of over 9 billion cubic feet per day, led by operations in Australia and the Eastern Mediterranean. The company also set a new quarterly deepwater production record in the U.S. Gulf of America. In the Permian, capital spending per barrel improved by more than 25%, while drilling and completion spending fell 40% and facility spending declined 50%.
Chevron highlighted significant growth opportunities, particularly in Venezuela, where it plans to double production from its three joint ventures to about 600,000 barrels per day by 2031. The company is also expanding its exploration footprint, adding 22 million acres over the past two years and doubling its exploration footprint across 12 new basins. AI technology generated more than $100 million of value capture year to date in 2026, cutting loss-production events by 50% in the DJ Basin and optimizing production in the Permian, Bakken, and PZ assets.
Despite the strong performance, Chevron noted risks such as lower sequential earnings, volatile commodity prices, permitting issues, and a future non-cash accounting loss. The company reaffirmed its commitment to consistent dividend growth, efficient investment, and share repurchases, with plans to keep annual buybacks in the $2.5 billion-to-$3 billion range. Chevron also highlighted its disciplined capital allocation and plans for Project Kilby, a 2.67-gigawatt power project in West Texas, targeting a final investment decision and first power in 2028.