Chevron Corporation (NYSE:CVX, XETRA:CHV) reported stronger-than-expected first-quarter earnings on Friday, as higher oil and natural gas prices and output gains from its Hess Corporation acquisition helped cushion the blow from production disruptions tied to the Iran war and regional supply curtailments.
The US energy giant posted reported earnings of $2.2 billion for the first quarter of 2026, with adjusted earnings coming in at $2.8 billion, or $1.41 per diluted share. That compares to adjusted earnings of $3.8 billion, or $2.18 per diluted share, in the same quarter a year earlier.
Despite the year-over-year decline, the results surpassed analyst expectations, with higher commodity prices and the integration of Hess assets underpinning performance.
"Despite heightened geopolitical volatility and related supply disruptions, Chevron delivered solid first quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution," said Mike Wirth, Chevron's CEO.
Worldwide production rose 15 percent year-over-year, while US production climbed 24%, driven largely by the Hess acquisition and continued growth in the Gulf of America and the Permian Basin. US output exceeded two million oil-equivalent barrels per day for the third consecutive quarter.
Production gains were partly offset by downtime at Tengizchevroil, Chevron's 50%-owned affiliate in Kazakhstan, and curtailments in the Middle East, including shutdowns in Israel and the Partitioned Zone between Saudi Arabia and Kuwait.
A notable bright spot in the quarter was refinery activity. US refineries operated at record crude throughput in March, a result Wirth highlighted as evidence of disciplined operational execution.
"Our US refineries operated at record crude throughput in March, capital spending remains within guidance, and our structural cost reductions are firmly on track," Wirth said.
Capital expenditure in the quarter was higher than a year ago, largely reflecting spending on legacy Hess assets, partially offset by reduced investment in the Permian Basin.
Wirth said the company is closely monitoring the situation in the Middle East. "The unpredictable external environment reinforces the importance of disciplined investment to ensure reliable energy supply and global energy security," he said.