Chevron’s Q1 earnings fell sharply due to a $2.9 billion hedging hit, though production surged 24% and shareholder returns reached $6 billion.
Chevron reported a 35% year-over-year decline in first-quarter earnings, pressured by a $2.9 billion one-time hedging impact. The drop masks underlying strength, including a 24% increase in U.S. production driven by the Hess acquisition and Permian Basin operations.
Despite the earnings miss, the company returned $6 billion to shareholders via $3.5 billion in dividends and $2.5 billion in buybacks. Analysts suggest the hedging headwind may reverse later in 2026, improving future results.
Energy prices rose mid-quarter due to Middle East tensions, which could further bolster Chevron’s performance in upcoming quarters.