Chevron Corporation (CVX) Business Profile

What it does

Chevron is an integrated energy and chemicals company. Its businesses find and produce crude oil and natural gas, move and process them, and sell fuels, lubricants and chemicals to industry and individual consumers. Mike Wirth is chairman and chief executive officer.

The upstream business explores for oil and gas, develops fields and produces hydrocarbons. It also transports oil and gas, processes and liquefies natural gas, and handles the transportation and regasification of liquefied natural gas, or LNG. Other activities include natural gas storage and marketing, carbon capture and storage, and a gas-to-liquids plant.

The downstream business refines crude oil into petroleum products and markets crude oil, refined products and lubricants. It also manufactures and markets renewable fuels, petrochemicals, industrial plastics, and fuel and lubricant additives. Pipelines, ships, trucks and rail cars move crude oil and refined products through the system.

Chevron’s operations and projects span North America, South America, Europe, Africa, Asia and Australia. Some are operated by Chevron; others are held through affiliates or nonoperated interests. In the United States, its upstream activities are concentrated in several oil- and gas-producing states and the Gulf of America.

The parent corporation manages investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to its subsidiaries. Chevron had 43,039 employees at December 31, 2025.

How it makes money

Chevron earns money from activities across the oil and gas chain. Upstream, it sells crude oil, natural gas and natural gas liquids produced from its properties. Downstream, it refines crude into products and sells fuels, lubricants, renewable fuels and chemicals. It also provides transportation, storage and other services through parts of its portfolio.

Prices for crude oil, natural gas, LNG, petroleum products and petrochemicals are generally determined by supply and demand. Upstream results therefore change with the prices Chevron receives and the volumes it produces and sells. Downstream earnings depend on demand for refined products and the margins on their sales; changes in refining volumes also affect results.

Most contracts for oil, gas and natural gas liquids generally commit Chevron to sell quantities based on production from specified properties. Some natural gas and natural gas liquids contracts instead specify fixed quantities. Its U.S. delivery commitments are primarily under contracts with indexed pricing, while Australian gas sales contracts generally reference prevailing prices for crude oil, natural gas or other petroleum products. Israeli gas contracts generally use an initial base price with indexation over the contract’s life.

Some assets also earn fees. Hess Midstream provides fee-based gathering, processing and other services for Chevron and third-party customers in the Bakken. Chevron’s Venezuelan ventures produce crude that Chevron markets, mostly to U.S. refineries.

In the third quarter of 2026, adjusted downstream earnings increased from the prior quarter primarily because of higher refining margins and volumes, while adjusted upstream earnings declined partly because of lower realized prices and liftings.

Customers and how it sells

Chevron supplies energy, fuel and chemical products to industrial customers and individual consumers. It sells production to third parties and affiliates under contracts and markets refined products and lubricants through its downstream business. Hess Midstream also serves Chevron and third-party customers in the Bakken.

The company has operations and projects across North America, South America, Europe, Africa, Asia and Australia. At December 31, 2025, its net proved oil-equivalent reserves included reserves in the United States, Australia and Kazakhstan.

Chevron has natural gas delivery commitments outside the United States, mainly from operations in Australia and Israel. In Venezuela, Chevron markets the crude from its ventures, with the majority going to U.S. refineries, including Pascagoula and El Segundo.

Chevron has also signed a power purchase agreement with Microsoft for Project Kilby in West Texas. The company is working toward a final investment decision for the project and still needs to secure financing and work through permitting.

Suppliers and costs

Chevron requires equipment and labor to develop and operate oil and gas properties, and it competes with other producers to obtain them. Its operations also depend on suppliers, vendors, partners and equity affiliates. Long-lead-time projects require capital and depend on completion on budget and on schedule.

Downstream manufacturing includes refineries, renewable fuels and chemicals. A joint venture with Bunge completed commissioning an oilseed processing plant in Louisiana to provide additional feedstock for Chevron’s biofuels business. Crude oil and refined products also require transportation by pipeline, marine vessel, motor equipment or rail car.

Chevron does not anticipate major additional infrastructure spending as it increases production in Venezuela. In the Bakken, Chevron expects a reduction in midstream tariffs. The associated Hess Midstream transaction is expected to close at the end of the fourth quarter of 2026.

Commodity prices influence both the value of production and the economics of refining. Extended low prices can affect suppliers and partners as well as Chevron’s own earnings, cash flow and capital spending.

Competitive position

Chevron competes with integrated global petroleum companies, independent producers and national oil companies for oil and gas leases, properties, equipment and labor. In downstream markets, it competes with integrated companies, independent refiners and marketers, transportation and chemicals businesses, and national oil companies in fuels, lubricants, additives and petrochemicals.

TotalEnergies also holds exploration acreage in the U.S. Gulf, where Chevron explores and produces. It was reported on 28 October 2026 that Chevron received an operated interest in TotalEnergies exploration leases next to leases the companies already held jointly. The companies are therefore partners on some acreage as well as participants in the same exploration region.

Chevron’s Permian operations use multi-well pads and horizontal drilling. The company says its acreage and development approach have supported productivity improvements. It has also deployed a proprietary catalyst in large refineries and an in-house production assistant in the Permian, Bakken and Partitioned Zone assets.

Our reading: Chevron’s acreage, facilities and technical capabilities provide a meaningful competitive position because they support development and processing across several assets. Our reading: That position is not insulated from competition for resources and equipment, or from commodity prices set by supply and demand.

Growth opportunities

Chevron aims to grow its oil and gas business, lower the carbon intensity of its operations and develop new energy businesses. Additions to its proved reserves at year-end 2025 came from the Hess acquisition, Permian extensions and discoveries, and project approvals in Australia and Guyana.

The Hess acquisition added assets in Guyana and the Bakken. In Venezuela, Chevron expanded its acreage and established new fiscal terms. It plans to double production from its joint ventures by 2031. Chevron expects the program to be self-funding and says existing infrastructure will not need major upgrades.

Chevron has announced a discovery in Angola within tieback range of its operated facilities, creating an opportunity to develop the discovery using existing infrastructure. It is also working to extend the Tengizchevroil concession in Kazakhstan; the company says discussions have narrowed to core issues, but an agreement has not been announced.

At existing facilities, Chevron is pursuing capacity increases and other operating improvements. Gorgon and Wheatstone are operating above nameplate capacity, and Chevron sees potential for further increases. Its Louisiana oilseed processing venture adds feedstock capacity for biofuels.

Outside its traditional oil and gas activities, Chevron is developing Project Kilby, a power project with a Microsoft purchase agreement. Chevron says it is working toward a final investment decision, with first power on track for 2028 and full energization for 2031, subject to the remaining project work.

Structural risks

• Commodity prices and demand: Extended low prices or demand for oil, natural gas and natural gas liquids can adversely affect results, liquidity, capital spending, production and reserves. Refining earnings depend on product supply, demand and margins.
• Replacing resources: Chevron must replace the oil and gas it produces. Future projects depend on access to rights, drilling success, technology, partner alignment and completing capital-intensive developments on time and on budget.
• Operational disruption: Severe weather, fires, accidents, conflict, system failures and cyberattacks can interrupt operations or harm people, assets and the environment. Chevron has limited influence over some operations run by others.
• Political and regulatory changes: Governments may change taxes, royalties, contracts or ownership requirements. Sanctions, environmental rules and restrictions on drilling or hydraulic fracturing can also affect operations and profitability.
• Climate and emissions policy: Greenhouse-gas regulation and changing consumer preferences may raise capital and operating costs, reduce hydrocarbon demand or make some resources uneconomic. Chevron also faces potential litigation and liability related to its operations.
• Hess integration: Chevron may not realize the expected benefits of the Hess acquisition on schedule. Operational challenges, unforeseen expenses or management distraction could affect financial results.

Bottom line

Our reading

Our reading: Chevron combines oil and gas production with refining, marketing and chemicals, giving it several ways to participate in energy markets. Its extensive acreage and infrastructure support development, but the business remains exposed to commodity prices and the need to replace produced resources. Growth plans in Venezuela and elsewhere add opportunities while keeping execution, political and regulatory risks central to the business.