Chevron beats estimates as refining margins lift earnings

Investing.com -- Chevron Corporation ( CVX ) shares are up in premarket trading after the company reported third-quarter earnings that topped expectations.

Adjusted earnings were $5.28 per share, surpassing analyst estimates of $4.88, as the energy giant benefited from stronger refining margins and higher crude oil prices. Revenue reached $67.8 billion, exceeding the $60.55 billion consensus estimate and up 36% from $49.7 billion in the same quarter last year.

Chevron stock rose 1% before the bell on Friday.

The company posted adjusted earnings of $10.4 billion for the quarter, compared to $3.6 billion in the prior-year period. U.S. refineries achieved record crude throughput of 1.09 million barrels per day with utilization rates near 98%, while downstream operations delivered significantly higher margins on refined product sales. Shares rose 2.2% following the results.

"We delivered strong operational performance and disciplined execution, while continuing to invest to grow energy supply," said Mike Wirth, Chevron's chairman and chief executive officer. He noted that U.S. upstream production exceeded 2 million barrels of oil equivalent per day for the fifth consecutive quarter.

Total net oil-equivalent production was 3,980 thousand barrels per day in the quarter, down 3% YoY primarily due to lower entitlements from higher prices and impacts from the Middle East conflict, partially offset by record production at operated assets in Australia and higher Gulf of America output.

The company generated $16.0 billion in cash flow from operations and $12.0 billion in free cash flow during the quarter. Chevron reduced total debt by $3.5 billion and achieved a return on capital employed of 18%.

Chevron declared a quarterly dividend of $1.78 per share, payable December 10, 2026.