Chevron Corp 2Q26 First Take – ALERT

Research evidence excerpt

Chevron Corp 2Q26 First Take – ALERT

J P M O R G A N North America Equity Research

31 July 2026

Chevron Corp Overweight

CVX, CVX US

2Q26 First Take – ALERT Price (30 Jul 26):$192.31

Oil & Gas Exploration & Production

JPM View: Stock Reaction - Positive. We expect a positive reaction to the print, Arun Jayaram AC

which featured a sizeable financial beat, a favorable update on “self-help” (1-212) 622-8541

initiatives, and greater than expected deleveraging. CVX printed a clean EPS of arun.jayaram@jpmchase.com

$6.06, which topped JPMe/STe by 3% and 7%, respectively. 2Q26 CFO ex-WC of Pankaj Bhatter, CFA

$19.7bn was 7% above JPMe and 9.5% above the Street. On the back of a $2.95bn (1-212) 622-3795

working capital release, CFO of $22.6bn was 9.2% above JPMe of $20.7bn. The pankaj.bhatter@jpmchase.com

J.P. Morgan Securities LLC

company reduced debt by $8.4bn sequentially and repurchased $3.0bn of stock,

while still growing the cash balance by $3.2bn sequentially. Relative to our model,

the upside earnings surprise was largely driven by downstream as Downstream

earnings of $4.6bn were 10% above our $4.2bn estimate, while Upstream earnings

of $8.3bn were essentially in line with our $8.4bn estimate. Overall upstream

production of 4.1 MMBoe/d was 1% above JPMe/STe. Total shareholder return of

$6.5bn matched our expectations. On the ‘self-help’ front, the company achieved

its $1.5bn of HES synergy target and its long-term $3bn structural cost reduction

target relative to 2024 levels six-months ahead of plan. In terms of guidance, the

company guided to 175 MBoe/d of sequential turnarounds and downtime relative

to 2Q26 levels, which we do believe captures the well-chronicled downtime at

TCO in July. Key for the call is CVX’s confidence in achieving its $6bn distribution