First Read Chevron: CVX 2Q26 Earnings and Cash Flow Beat, production up +5% QoQ

Research evidence excerpt

First Read Chevron: CVX 2Q26 Earnings and Cash Flow Beat, production up +5% QoQ

production increased by over 5% or ~200 Q4E 3.00 3.73

mboepd peer XOM is down 1.7% QoQ. 12/26E 13.22 15.11

12/27E 11.27 12.62

Downstream. 2Q26 reported US Downstream Adj. Earnings of $2,411M below

12/28E 12.01 12.44

UBS/Street $2,522/$2,216mm. For US downstream, refining margins were

$1,140M tailwind and chems were $235M tailwind. 2Q26 reported International Manav Gupta

Downstream Adj. Earnings of $2,457M vs UBS/Street $2,024/$1,898mm. For Analyst

international downstream, Timing effects were +$2,360M tailwind and margins manav.gupta@ubs.com

+1-212-713 4399 were $530M tailwind.

Saumya Jain

3Q26 guide: $2.5-$3.0 billion share repurchases ( we expect higher end). After- Associate Analyst

tax earnings impacts from Downstream turnarounds and downtime are expected saumya.jain@ubs.com

to be between $175- $225 million, due primarily to planned turnaround activity at +1-212-882 0089

the ElSegundo and Richmond refineries. On upstream, third quarter turnarounds

Sumantra Banerjee

and downtime, are expected to be between 150mboe/d - 200mboe/d including Associate Analyst

impacts from the major turnaround at Angola LNG, curtailment at the Partitioned sumantra.banerjee@ubs.com

Zone and July downtime at CPC. +1-212-713 5104

Stock thoughts

CVX achieved achieved $3B structural cost savings and $1.5B HES synergies targets six

months early. Net debt-to-CFFO dropped to 0.6x vs. 1.3x at the end of 1Q26. Compared

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Net earnings (UBS) 24,693 18,256 13,521 26,087 21,543 22,136 21,002 20,964

EPS (UBS, diluted) (US$) 13.13 10.05 7.29 13.22 11.27 12.01 11.90 12.44

CEPS (UBS, diluted) (US$) 20.71 17.28 19.59 26.32 26.74 28.22 28.37 29.86