The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Chevron slipped to No. 21 owing to low oil prices in 2025. But its shares and earnings have climbed this year as the Iran conflict sent those same prices skyrocketing. Chevron's 2025 acquisition of Hess is also beginning to add to its top line.

Fortune 500

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Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Energy sector dominated this year for the first time since 2008, with 28 companies featured on the list.

100 Fastest-Growing Companies

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Chevron

Fueled by a 52% jump in annual revenue, the oil giant moved back into the Top 25 of the Global 500 for the first time since 2015. 
<ul> 
 	<li>Chevron brought in $35.5 billion in profit.</li> 
 	<li>In November 2022, Chevron won permission from the U.S. Treasury Department to begin pumping oil in Venezuela again, resuming operations that had been interrupted by U.S. sanctions against that country.</li> 
</ul>

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Chevron

The oil giant climbed six spots on this year’s Fortune 500. Fueled by a 52% jump in annual revenue, Chevron moved back into the top 10 for the first time since 2015. 
<ul> 
 	<li>Chevron brought in $35.5 billion in profit, making it the sixth most profitable company on this year’s list.</li> 
 	<li>In November 2022, Chevron won permission from the U.S. Treasury Department to begin pumping oil in Venezuela again, resuming operations that had been interrupted by U.S. sanctions against that country.</li> 
</ul>

Industrials came out on top this year, with 22 companies featured on the list.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-37 Chevron

Like its Big Oil peers, Chevron experienced some much-needed financial healing in 2021 thanks to a bounce-back in demand for its products and a resulting surge in hydrocarbon prices. For the full year, the oil and gas giant reported profits of $15.6 billion, compared with a $5.5 billion loss in 2020. But Chevron faced unrest among shareholders, as some rebuked the company for underdelivering on its climate change promises. At the company’s annual meeting in May 2021, 61% of shareholders voted in favor of requiring Chevron to cut its Scope 3 emissions. Investors also expressed unease with a growing number of court judgments against the company outside the U.S., whose total value one 2021 report put at $50 billion. Chevron plans to spend $15 billion on oil and gas projects in 2022, 20% more than in the previous year; but at the end of 2021, it also announced a goal of being operationally net zero by 2050.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Chevron

Like its Big Oil peers, Chevron experienced some much-needed financial healing in 2021 thanks to a bounce-back in demand for its products and a resulting surge in hydrocarbon prices. For the full year, the oil and gas giant reported profits of $15.6 billion, compared with a $5.5 billion loss in 2020; it also climbed 11 rungs on the Fortune 500 ladder. But Chevron faced unrest among shareholders, as some rebuked the company for underdelivering on its climate change promises. At the company’s annual meeting in May 2021, 61% of shareholders voted in favor of requiring Chevron to cut its Scope 3 emissions. Investors also expressed unease with a growing number of court judgments against the company outside the U.S., whose total value one 2021 report put at $50 billion. Chevron plans to spend $15 billion on oil and gas projects in 2022, 20% more than in the previous year; but at the end of 2021, it also announced a goal of being operationally net zero by 2050.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-075-Chevron

COVID-19 socked the oil and gas industry, with energy demand evaporating amid global lockdowns. Particularly hard hit were transport fuels, Chevron’s bread and butter. The company lost $5.5 billion, from a $2.9 billion profit the year before—itself, a sharp year-on-year drop. Said CEO Mike Wirth: “2020 was a year like no other.” The company announced steep cuts to capital expenditure. But 2020 was notable for another milestone, too: Chevron bought Noble Energy in a $13 billion acquisition, an industry-record price tag. The deal was completed in the fourth quarter.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-27-Chevron

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-036-Chevron

Facing a dip in oil prices in 2019, the CEO of California-based Chevron, Mike Wirth, warned there was no “silver bullet” to improve returns as long as oil markets remained flat. And sure enough, full-year net income fell 80% to $2.9 billion. Revenues and cash flow declined, too, forcing the company to cut unprofitable projects—and to refocus on the U.S. shale sector. Its assets in Venezuela, which it held on to even as other oil companies left the country amid economic collapse, have also seen a new twist: This spring, the Trump administration ordered Chevron to “wind down” its operations in the country.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-015-Chevron

Facing a dip in oil prices in 2019, the CEO of California-based Chevron, Mike Wirth, warned there was no “silver bullet” to improve returns as long as oil markets remained flat. And sure enough, full-year net income fell 80% to $2.9 billion. Revenues and cash flow declined, too, forcing the company to cut unprofitable projects—and to refocus on the U.S. shale sector. Its assets in Venezuela, which it held on to even as other oil companies left the country amid economic collapse, have also seen a new twist. This spring, the Trump administration ordered Chevron to “wind down” its operations in the country.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Chevron is the second-largest integrated energy giant that’s based in the U.S., with an exploration and production arm as well as a refining and retail segment. Its products are sold at more than 8,000 Chevron and Texaco gas stations in the U.S. As an oil major, its operations also span the globe. The company changed its name to Chevron from ChevronTexaco in 2005.

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Chevron (CVX): Company Profile, Stock Price, News, Rankings

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Chevron

chevron

Good morning. My name is Katie, and I will be your conference facilitator today. Welcome to Chevron's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' remarks, there will be a question and answer session and instructions will be given at that time.

As a reminder, this conference call is being recorded. I will now turn the conference call over to the Head of Investor Relations of Chevron Corporation, Mr. Jake Spearing. Please go ahead.

Thank you, Katie. Welcome to Chevron's Second Quarter twenty twenty five Earnings Conference Call and Webcast. I'm Jake Spearing, Head of Investor Relations. On the call with me today is our Chairman and CEO, Mike Worth our Vice Chairman, Mark Nelson and our Vice President and CFO, Humor Bonner. We will refer to the slide and prepared remarks that are available on Chevron's website.

Before we begin, please be reminded that this presentation contains estimates, projections and other forward looking statements. A reconciliation of non GAAP measures can be found in the appendix of this presentation. Please review the cautionary statement and additional information presented on slide two. Now, I will turn it over to Mike.

All right, thanks Jake. In the second quarter, Chevron achieved several important milestones, continuing the momentum we've been building over the last year. The success underpins strong financial results, industry leading free cash flow growth and superior distributions to shareholders. Production was a quarterly record for the company, both in The US and worldwide. In the Permian, production averaged more than 1,000,000 barrels of oil equivalent per day, a target we introduced over five years ago and achieved right on schedule.

In June, we acquired lithium rich acreage in Texas and Arkansas, our first step toward establishing a scalable domestic lithium business. And we returned over $5,000,000,000 to shareholders for the thirteenth consecutive quarter. Two weeks ago, we achieved a favorable arbitration outcome and closed our merger with Hess, bringing together world class assets, people and capabilities to create a premier international energy company. This adds long term low cost growth in Guyana. The Bakken expands our shale portfolio to 1,600,000 barrels of oil equivalent per day.

We're now the largest leaseholder in the Gulf Of America and our overall US production is nearly 60% higher than it was just two years ago. Our combined upstream portfolio has interest in some of the most attractive basins in the world, and is forecast to lead the industry in total cash generation over the remainder of the decade. We've been actively preparing for integration for nearly two years. Since the announcement, we've repurchased more than half of the shares issued for the transaction. We now expect to realize the full $1,000,000,000 in annual run rate synergies by the end of this year, six months faster than our original guidance.

We anticipate the transaction to be cash flow accretive per share in the fourth quarter. Last week we completed the sale of our interest in the Thailand and Malaysia joint development area, and this week John Hess was elected to and actively participated in Chevron's Board of Directors meeting. The deal was good when we announced it and has only gotten better. Now I'll turn it over to Mark to cover our operational achievements.

Thanks Mike. Shepherd has been producing in the Permian Basin for a hundred years. Our unique position traces its roots back to the Texas Pacific Land Trust and now contains more than 2,000,000 net acres and an advantage mineral interest. We produce nearly as many royalty barrels as the next three largest royalty producers combined, with mineral holdings that benefit around 75% of our total Permian acreage. Over the last five years, we've nearly doubled production organically while capturing significant efficiencies.

Improved well and completion designs, reduced cycle times, and technology deployment have led to a 30% reduction in development and production unit costs. We expect costs to decline further as we shift our focus to free cash flow generation. With our advantage royalty position, we believe our portfolio is unmatched. Our scale, technological capabilities and focus on capital discipline position us to continue leading the basin and returns long into the future. Across our portfolio, we have a long history of taking good assets and making them better.

Our large complex facilities in Kazakhstan and Australia are operating well above design capacities and we continue to find opportunities to improve. In our deepwater assets, we have a track record of applying leading edge technology to unlock economic projects and increase resource recovery. We also continue to deliver top quartile turnaround performance. We used real time data analytics to complete our recent turnaround at Pascagoula on budget and ahead of schedule. And in the second quarter, we had our highest US refinery crude throughput in over twenty years, despite fewer refineries today, highlighting the success of recent optimization efforts.

We have strong base assets and we're leveraging our capabilities to capture more value across our global portfolio. Just as we have enhanced our portfolio, we've also restructured our work. In upstream, we've reduced the number of reporting units by approximately 70%, bringing together similar assets such as our shale and tight businesses in the Permian, the DJ, the Bakken and Argentina, enabling us to scale best practices faster, standardize solutions, and streamline support. Our engineering hubs are designed to drive standardization, efficiency, and value. We're already seeing benefits today through centralized well design and turnaround planning.

And we expect faster innovation and scaling of solutions like artificial intelligence to optimize fracs in real time and accelerate exploration data analysis among other use cases. This improved operational efficiency and execution supports our targets of $2,000,000,000 to $3,000,000,000 in structural cost reductions by the 2026. Through deep technical acumen, operational best practices, and great people, we expect to drive continued performance improvement across all asset classes. Now, I'll turn it over to Eemer to discuss the financials.

Thanks Mark. For the second quarter Chevron reported earnings of $2,500,000,000 or $1.45 per share. Adjusted earnings were $3,100,000,000 or $1.77 per share. Included in the quarter were special items related to the fair value measurement of Hess shares, company pension curtailment costs and the gain on sale of assets, resulting in a net charge of $215,000,000 Foreign currency effects decreased earnings by $348,000,000 Organic CapEx was $3,500,000,000 our lowest quarterly total since 2023, while delivering significant volume growth. Inorganic CapEx was approximately $200,000,000 primarily related to the acquisition of Lithium Acreage.

Chevron generated cash flow from operations excluding working capital of $8,300,000,000 Adjusted free cash flow, which includes equity affiliate loans and asset sales, was $4,900,000,000 representing a 15% increase quarter on quarter, despite 10% lower crude prices. These results were driven by our organic high margin production growth, strong reliability and continued commitment to capital discipline. Adjusted second quarter earnings were down $760,000,000 versus last quarter. Adjusted upstream earnings decreased due to lower realizations, higher DD and A from increased production, and unfavorable tax impacts. Adjusted downstream earnings were higher due to improved refining margins and higher volumes.

Second quarter oil equivalent production was up over 40,000 barrels per day from last quarter, Due to strong performance in our base business and solid execution in our growth assets in the first half of the year, we now expect production growth to be closer to the top end of our 6% to 8% guidance range, excluding Hess. Over the last year, we've consistently delivered key project milestones that we expect to drive industry leading free cash flow growth. At TCO, FTP is producing at full rates. In The Gulf Of America, we're ramping up production from recent major project startups. In the Permian, we achieved a significant production milestone and are beginning to moderate growth, reduce CapEx, and increase free cash flow.

And we're already realizing structural cost benefits and expect to lock in 1,500,000,000.0 to $2,000,000,000 of annual run rate savings by year end. The integration of legacy HEF assets is expected to contribute additional free cash flow, more than covering the incremental dividend from the merger share issuance. All of this leads us to increase our twenty twenty six additional free cash flow guidance to $12,500,000,000 We're building on our strong momentum to deliver sustained long term value. I'll now hand it off to Jake.

That concludes our prepared remarks. Additional guidance can be found in the appendix to this presentation, as well as the slides and other information posted on chevron.com. And we look forward to sharing more with you at Chevron's Investor Day on November 12 in New York City. We are now ready to take your questions. We ask that you limit yourself to just one question and we will do our best to get all of your questions answered. Katie, please open the lines.

Thank yourself to one question. If your question has been answered or you wish to remove yourself from the queue, please press 2. If you're listening on a speaker phone, we ask you please lift your handset before asking your question to provide optimum sound quality. Our first question comes from Biraj Borkhataria with RBC.

Hi, thanks for taking my questions. So firstly, congratulations again on the arbitration win. Nice to get that uncertainty behind you. I wanted to ask and pick up on the comments you made in the Permian. You obviously hit a milestone in the second quarter with the production at 1,000,000 barrels of oil equivalent and now talking about moderating spend.

Are you able to give us a sense of what we should expect in terms of 2627 budget and capital spend versus what you're spending in 2025? Thank you.

Biraj, thank you for your recognition of the arbitration outcome as well as the performance of our Permian team. Think I would start just by reminding everybody of the foundation of that performance. And it's that large acreage position that we have that has very low breakevens and a royalty advantage that quite frankly is very tough, if not impossible to replicate at a reasonable price today. And that allows us to structurally have better returns and allows us to sustain performance and cash flow generation. With this intentional shift, you remember that we put peak CapEx well behind us here not too long ago, and we talked about in 2025 having capital spend between 4 and a half to $5,000,000,000 You should expect us to be in the lower end of that range as we finish 2025, given the efficiencies we brought to bear.

As we deliver that free cash flow growth of 2,000,000,000 next year in the Permian, I think you should see that drop further as we continue to manage a sustained performance in the Permian. So, more to come there in our Investor Day, but we're definitely drawing down our CapEx and generating a lot more free cash flow.

Thank you. We'll go next to Neil Mehta with Goldman Sachs.

Hey, good morning, Mike and team again. Congrats on Hess. We really appreciate the updated waterfall here. And so, Mike, maybe you could just spend some time, you know, talking about how much of the $10,000,000,000 in the standalone you feel like you've derisked and your confidence interval on each of those four buckets. And then maybe some of the key assumptions that went into the $2,500,000,000 for Hess and recognizing you're going to pack more of this for us on November 12.

Yeah, Neil, thanks. In a word, our confidence level is high. I'm going let Emer walk you through each of the buckets.

Morning, Neil. Yeah, so starting with the $10,000,000,000 if you look at the waterfall and the upstream catalyst, starting with TCO, I mean TCO has ramped up, it's producing at full rates, and so we've de risked that production profile. Next, we've got Permian. Mark talked about this significant milestone over the second quarter. So we've ramped up and are producing at those rates and that's de risked as well.

Gulf Of America, our three projects, our major capital project startups are behind us. Those assets are ramping up to some additional ramp to go between this year and next year. And then the balance is really the cost reduction program. We're on track to deliver our capital program consistent with our budget and our 2,000,000,000 to $3,000,000,000 of cost reduction that's on its way. We made a lot of progress, we're anticipating that to show up more in the bottom line at the back end of the year and into the year.

So all in all, $10,000,000,000 is de risked and on track. The incremental $2,500,000,000 that we guided to this morning associated with Hess is coming from two places. First, the synergies, Mike talked about that, the synergies we are committed to delivering $1,000,000,000 of run rate synergies by the end of the year. And then the balance is coming from production growth over the next couple of years with a fourth FPSO coming online this year and a fifth next year. So that's the rack up of the $12,500,000,000 And, in summary, a lot of these, big milestones are behind us and we're on track.

We'll take our next question from Devin McDermott with Morgan Stanley.

Hey, good morning. Thanks for taking my question. So, Mark, I wanted to dive in a bit more detail to some of the business reorganization. I appreciate the comments you gave in the prepared remarks and the slide on the new structure. I was wondering if you could contrast this new organizational structure versus what Chevron currently has.

How did you arrive at the inclusion that these were the right adjustments to make? And I think the cost reduction improvements that come along with are pretty clear, but what are some of the other tangible benefits you're expecting areas like operational execution, major project delivery or turnaround efficiency?

Yeah, thanks Devin, thanks for the question. You know, to put the changes we're making in context, you'll recall that our portfolio certainly has more scale over time and more scale in specific asset groups or asset classes. And of course, technology continues to evolve. So with that backdrop and the fact that we come from a decentralized kind of operating model where we really get things done locally and have very strong relationships locally, we wanted to build on that to unlock incremental value. Maybe the safest way to think about it would be in three ways.

First, we're gathering like businesses together. So the traditional phrase would be asset classes, but think of our deepwater well design, you know, we've reduced cost in the Gulf Of America by 30% and now we're applying that same approach very quickly into the Angola's, Nigeria's and other deepwater locations around the operation. So it's an opportunity to accelerate the application of best practices. And then standardizing and grouping work to fully leverage scale in technology. Think of our digital twins and the ability to do turnaround planning in anywhere in the world for a facility that could be on the other side of the world and demonstrating world class performance.

We have multiple examples of that. And then finally, although we are reducing our total number of headcount, the ability to enable our people to get things done in a simpler way is all part of this. I expect to see more than just cost reductions, expect to see performance improvement across the system.

Thank you. We'll take our next question from Steve Richardson with Evercore ISI.

Hi, good morning. Thanks. I was wondering if we could zoom out a little bit. Appreciate the previous comments from Mark about the Permian, but I was wondering if we could talk about the broader tight oil portfolio now that you've you're in process on integrating Hess. And so how should we think about the Permian, DJ, Bakken as a whole balancing growth and free cash generation and sort of the role of tight oil in the broader portfolio on a go forward basis?

Yeah, Steve, we really have a position that a few years ago, I'm not sure we could have imagined as we were ramping up in the Permian and at, you know, a few 100,000 barrels a day. If you take the Permian a million a day, the DJ at nearly 400 a day, the Bakken at 200 a day, that's 1,600,000 barrels a day. That's larger than a lot of companies. And now as we consolidate Hess' production, we're going be pushing up close to 4,000,000 barrels a day. So that's 40% of our production in shale and tight.

So a substantial portion of our overall upstream. Certainly one of the criticisms of operators in the shale over the years has been all the cash goes right back into growth. And investors didn't see a lot of it. At 1,600,000 barrels a day, if we can apply the capital efficiencies that Mark has described, operating efficiencies and drilling and completion efficiencies as well to hold production at a plateau for years and years and years. The amount of cash that that can throw off for investment across the rest of the portfolio is very meaningful.

And that cash also of course supports balance sheet strength, the dividend and the share repurchase. And so we want to see a balanced portfolio with both short and long cycle investments. You know, those of you that have been around for a while remember a decade ago when we were overweight on long cycle, it was a long wait to see some of that production arrive. And so we intend to have a nice balanced mix within our portfolio, across geographies, across asset classes, across segments of the business, with a real focus on using that to deliver steady, predictable, reliable cash that, you know, large portion of it will be returned to shareholders. So, we're very pleased to have such a large shale portfolio.

And at some point, you know, is less the objective than free cash flow. You know, we're approaching that point.

We'll take our next question from Doug Leggate with Wolfe Research.

Good morning, everyone. Mike, I still haven't got the whiskey, but I'm holding out hope. So congratulations again.

We'll take it offline. I have a very specific question, actually, as a follow-up to Steve's question on the Bakken. Hess was kind enough to report their US business separate from international. And even with the synergies, The US business under their reporting would still be free cash flow negative. And the reason for it of course is they pay out significant dividends or tariffs rather to Hessam.

My question is, this a core business for Chevron? Because a few years ago they talked about a ten year inventory. Today it's probably a five year inventory, but it is free cash flow negative. So, in the context of what you're prioritizing, what is the role of the Bakken specifically in your portfolio?

Thanks for the question, Doug. Stepping back, would say we're excited to add the position North Dakota to our shale and tight portfolio. Mike mentioned, our view is today it generates solid cash flow when you look at the entity in total. And we've learned from our experience integrating Noble and PDC, the team to step back and look at both the talent and the assets that we're acquiring here. We've come to know the Hess team very well, they do some things very well in the Bakken.

And we've obviously got our own capabilities in unconventional. So, we look forward to bringing those together. We haven't made any long term development plans just yet, but we'll talk about that more in our Investor Day. I think your comment is linked to Hess Midstream. And obviously that is a bit of a unique financing structure and my personal belief is that that can be more efficient.

It's different than some other midstream elements that we have divested of. It's different in its size and its structure and obviously its logistic linkage to the Bakken. We'll be value driven regard to how we handle that over time and we can talk about that more in our Investor Day in November.

We'll take our next question from Jean Ann Salisbury with Bank of America.

Hi, good morning. Can you just recap how things stand in Venezuela for you today? Are the production levels and contract structures basically as they were prior to all the movement there year to date?

Yeah, Jean Ann, thanks. You know, I'll just remind everybody, we've been operating in Venezuela for over one hundred years and believe our presence has played an important role in regional energy security as well as maintaining American economic interests. Since our license changed in May, we've been engaged with the US government working closely with the administration to ensure our compliance with our country's policies towards Venezuela. This month, it looks like there will be a limited amount of oil that will begin flowing to The US from the Venezuela operations that we have an interest in consistent with US sanctions policy. And crude from Venezuela is sought after and very valuable to US Gulf refiners that are specifically built to process heavy grades like that and so it serves as a reliable source of supply for the American economy.

We don't expect the flows from Venezuela will have a material impact on our results here in the third quarter. Although it will, you know, at the margin help satisfy some of the debt we're owed. And over time, we hope to continue recovering that. And I'll just end by saying, as in all countries where we have a presence, we'll continue to operate in accordance with all applicable laws and regulations in any US sanctions regime or policies. That includes Venezuela.

We'll go next to Ryan Todd with Piper Sandler.

Great, thanks. Congratulations on a strong quarter and in particular strong operational performance right now. I think if you look at across the portfolio with the timing and the ramps, successful ramps on multiple projects from the Gulf Of Mexico, Permian hitting the million barrel a day target, an impressive ramp at Tanguis and even Australian LNG, which hasn't always been the greatest operations operating at 7% above nameplate right now. So what has worked well of late as you look across the operational portfolio and how do you continue to build on that momentum going forward?

Ryan, thanks for the acknowledgement. That's all that improvement you described on the backs of a lot of people across our portfolio. So, thank you. Thank you for that. I would step back on two things.

I would say operational efficiency when it comes to production and turnaround management are two areas that have driven a lot of our improvement over time. So, you'll note that in our downstream portfolio, our refinery throughput hit a new record, which was mentioned in the formal remarks. Driven by the startup of a light tight oil project in Pasadena that quickly ramped up to nameplate capacity. It was also linked to some very, very successful turnarounds. In fact, 14 of our last 16 turnarounds on our major assets, both in the refining sector and in our LNG facilities.

14 out of 16 have been quartile performance in regard to duration. So, the team is doing a really good job of driving our turnaround performance to kind of competitive leading benchmark activity. And then the final thing would just be efficiency on all of our base assets. So, in the Gulf Of America, our base assets continue to perform well as we leverage previous investments. In fact, production efficiency for the whole portfolio is up one to 2% year to date.

So we'll continue pressing forward and you should expect more of the same.

We'll go next to Paul Cheng with Scotiabank.

Hey. Good morning. Mark and, Mike, if we look at today, as you say, I mean, that, Post has, about 40% of your production from The US shale, and they have a different risk profile and everything. So I'm trying to understand that how important going forward the exploration fit into your overall portfolio. I think that many years ago that we would say, Oh, exploration, you want to be targeting that organically.

We pay 100% of your resource than your production. But with 40% of your production basis on there, what is the right target going forward for you guys? And do you think that you have, the right program? Because frankly, that the last several years, that exploration program from you, may not have yield, the result that you may want. So I want to see that, do you happy with the result?

And if not, what changes that you think you need to make over there? Thank you.

Yeah, Paul, thanks for that. I'm not happy with the results out of exploration over the last few years, but I want to acknowledge our exploration team has been operating in a pretty narrow range. We've reduced our investment for the reasons you point out. We're seeing big resource and reserve ads from our shale business for many years. And we were really serious about capital discipline and so as we're ramping up the spending on that, we pulled back and focused into a pretty narrow range of activities.

As we move towards a plateau and as earlier I talked about the need for a balanced and diversified portfolio, exploration needs to play an important role and we are making some changes to our program and our approach. I'll let Mark give you some highlights on that.

Yeah, thanks Mike. And Paul, for the thanks for the question. You know, exploration will continue to play an important part in building our future portfolio. I think in the past, Paul, we've talked about ensuring that we have a balanced portfolio for exploration. That means, mature areas near existing infrastructure and early high entry, or early entry, high impact frontier areas.

So, one's about replenishing resources for investments we've already made and the other would be resources for the future. That philosophy hasn't changed. We've just opened the aperture a bit to lean in a bit more. And I think you have seen us have success in our infrastructure enabled exploration here over the last few years thinking about the Gulf Of America, Nigeria, the partition zone, and Angola. And then we've been restocking the covered, if you will, when it comes to frontier acreage.

We've added over 20% we've increased our portfolio by over 20% as you look over the last couple of years. And as you look towards the end of this year, you'll see us put down wells in the Suriname, Namibia, and Egypt in those frontier type of offerings. And so, when you think about that, applying more attention to it, as well as us making some operational changes where we've streamlined our exploration organization and have brought in the talent of the Hess team as well as some others, I think you'll start to see best build on the positive momentum that we have on our infrastructure finds. Thanks, Paul.

And it will be an area, Paul, maybe just to tack on one other thing. Mark talked earlier about some of the more centralized decision making and execution. That's another thing as we will, we'll bring some of that decision making into a tighter group with an enterprise focus.

We'll take our next question from Arun Jayaram with JP Morgan.

Yeah, good morning. I was wondering if we could get a brief update on your Eastern Med Gas strategy and thoughts on potentially upgrading or doing expansion project at Leviathan as well as where Aphrodite sits in terms of your thoughts?

Yeah, thanks Arun for the question. You know, given all that's been going on in Eastern Mediterranean, our focus has been on keeping our people safe and maintaining energy supply to the region that so desperately needs it. The teams have done really good work on Tamar and Leviathan to keep our growth projects there moving. And so we do expect those to come online late this year, early next year. And you'll recall that, you know, those two projects, you know, essentially increase our production capacity by about 25% over the next couple of years.

And we see more growth potential in the region in general. Cyprus is part of that equation or Aphrodite project that we're doing front end engineering today. We've made good progress with our with the government there. And we've got approved plans to push ourselves towards FID. The initial development in Cyprus, you know, was for an FPU.

And I think we'll build something that leverages the Egypt market as well over time as maybe the regional market. So more to come in regard to FID, but we'll make sure we have competitive returns before we proceed on the Aphrodite project. Thanks Arun.

We'll take our next question from Josh Silverstein with UBS.

Thanks. Good morning, guys. You highlighted the strong operational performance at TCO and it's producing 18% above nameplate. Is this just at FGP or the whole project? And maybe if you can give us kind of the forward outlook here, is it kind of sustainable at this level and any sort of other debottlenecking opportunities? Thanks.

Yeah, Josh, thank you. We are very pleased with the performance of our whole Tengiz operation there, the team's worked hard. Think the, starting all the way back to the thirty days ramp up of FGP to nameplate, the team just has built on that momentum. Maybe the thing that excites me the most, and it gets to maybe your question is the integrated operation control center that was a part of our future growth project investment allows both the previous investments all the way back to our first generation investments to the recent projects that were commissioned and started up. It allows that whole system to be optimized.

So, wells, plants, everything. And I think we're just scratching the surface as to what potential that has over time. When I talked in my prepared remarks about the performance being above nameplate, that's obviously the first and second generation projects, which are as you described 18% above nameplate. We see the same type of opportunities as we now look at the whole integrated system. And in the fourth quarter we're planning a pit stop for maintenance activities that allows us maybe to continue to improve our operations there and build on the positive momentum we have.

We'll go next to Betty Jiang with Barclays.

Hi, good morning. Thank you for taking my question. I actually want to ask about the Affiliates distribution and that actually ties to the TCO outperformance as well. Second quarter really stood out from how strong the cash flow generation was. And a part of that is the Affiliates distribution much higher highlighting the outperformance in TCO.

Just wondering how you see that evolving, especially with the performance you're seeing at the asset. Could we see some upside to that distribution number for '25 and '26?

Morning, Betty. It's Imer here. I'll take that one. Yeah, to Mark's earlier point, the ramp up on TCO went really well in the first quarter, much faster than anticipated. So over the second quarter, we had higher production sustained for the entire quarter.

Coupled with the prices that we saw, I mean, the beginning of the quarter, prices were lower when we give the guidance. I think they were in the low 60s. And we saw higher prices during the quarter. So the combination of both higher prices and higher production is the result of that is the higher distributions that you saw in second quarter. Going forward, what I point out is in the third quarter, we'll see the first loan repayment and we'll see that coming through in our adjusted free cash flow metric that now includes distributions from equity affiliates.

So that's what you can expect to see in addition to the guidance around affiliate distributions that we've shared today. Thanks for the question.

Thank you. We'll go next to Lucas Herman with BNP Paribas.

Yeah. Thanks very much. Ima, sorry, just going back to the last question before I come on to what I wanted to ask you. Just to be clear, £1,000,000,000 of loan repayments you're saying will go through CFFO, I will be included in the affiliates line?

No. Look, as it goes through distributions, more or less equity affiliates is what the operational distributions go through. The loan repayment goes through cash from investing. But in the adjusted free cash flow metric that we shared today, we will be combining both of those. So they're flowing in different parts of the cash flow statement, but the combination will be in the adjusted free cash flow.

We'll take our next question from Nitin Kumar with Mizuho.

Hi, good morning and thanks for taking my question. Maybe I'll take advantage of Mark being on the call. You talked about EURs in the Gulf Of America being 9% above what you expected. Could you maybe talk a little bit about what you're seeing there? Is it reservoir?

Is it operations? And how does that change the view of the Gulf Of America within your portfolio in terms of investment?

Yeah, thank you for the question. We're actually very pleased with our performance in Gulf Of America. You know, the strong performance will take that 300,000 barrels a day that we've talked about in 2026 and likely put that through the remainder of the decade. And it's really a combination of two things. It's the ramp up of our anchor, whale and Baltimore investments, and it's the performance and fully full leverage of our base assets.

Chevron (CVX) Q2 2025 Earnings Call Transcript

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