Chevron to cut share buybacks as lower oil prices weigh on earnings
Published: 13:56 02 May 2025 BST
Chevron Corporation (NYSE:CVX, ETR:CHV) said on Friday it will sharply reduce share repurchases this quarter to between $2.5 billion and $3 billion, down about 30% from the prior period, as lower oil and gas prices dented profits.
Despite the slowdown, the oil major maintained its annual buyback guidance of $10 billion to $20 billion.
Shareholder returns totaled $6.9 billion in the first quarter, including $3.9 billion in buybacks and $3 billion in dividends.
Chevron reported adjusted earnings of $2.18 per share for the first quarter of fiscal 2025, slightly ahead of Wall Street estimates, but down 26% from a year earlier. Revenue fell 6% year-over-year to $47.61 billion, missing forecasts. Operating cash flow came in at $5.28 billion, below expectations.
Weaker commodity prices and lower upstream earnings weighed on results. Chevron’s upstream segment posted a 28% drop in earnings to $3.76 billion, with US and international liquids realizations falling 4% and 7%, respectively. Downstream earnings dropped 59% to $325 million.
Still, net production held steady at 3.35 million barrels of oil equivalent per day. The company highlighted a 20% year-over-year production boost at its Tengizchevroil project and first oil from the deepwater Ballymore field in the Gulf of Mexico.
CEO Mike Wirth said Chevron's “resilient portfolio, strong balance sheet, and disciplined capital allocation” position the company to deliver “industry-leading free-cash-flow growth by 2026.”
Shares of Chevron were down 1.5% before the opening bell Friday.
