Chevron Posts Record Production, Signals Growth from Tengiz to Venezuela in Q4 2025

By The Motley Fool
Friday, January 30, 2026

Chevron Corporation (NYSE: CVX) concluded a transformative 2025 by delivering record-breaking operational and financial results, positioning the energy giant for sustained growth into the new year. The company's fourth-quarter earnings call, led by Chairman and CEO Michael K. Wirth and CFO Eimear Bonner, highlighted a year defined by major project startups, portfolio strengthening through the Hess acquisition, and a relentless focus on capital discipline.

"2025 was a year of execution. We set records, started up major projects, and strengthened our portfolio," stated Wirth. A key driver was the completion of the Future Growth Project at the Tengizchevroil (TCO) venture in Kazakhstan, adding 260,000 barrels of oil per day and propelling Chevron to record global production levels. This, combined with the start-up of projects like Whale in the Gulf of Mexico and the Permian Basin consistently producing over one million barrels per day, fueled what the company called "industry-leading free cash flow growth." Adjusted free cash flow surged over 35% year-over-year, a notable feat achieved even against a backdrop of nearly 15% lower oil prices.

The company's strategic footprint expanded significantly with the closure of the Hess acquisition, creating what executives termed a "premier upstream portfolio with the highest cash margins in the industry." This move integrates high-growth assets in Guyana and strengthens Chevron's position in the Bakken shale.

Looking ahead, management provided a confident outlook for 2026, anticipating a 7% to 10% production increase year-over-year, excluding asset sales. This growth is expected from project ramp-ups, a full year of contribution from Hess assets, and continued efficiency gains. A major structural cost reduction program, launched last year, has already delivered $1.5 billion in savings and is on track to reach an expanded target of $3-$4 billion by 2026.

Beyond its core U.S. operations, Chevron detailed progress in several key international arenas:

• Venezuela: Chevron reported its operations have continued uninterrupted, with production growing by over 200,000 barrels per day since 2022 under current U.S. licenses. Wirth outlined potential for up to 50% further growth in the next 18-24 months, funded through a self-sustaining venture model. "The resource potential in Venezuela is large... it has the opportunity to become a more sizable part of our portfolio in the future," he said, while cautioning that further investment depends on fiscal stability and regulatory predictability.
• Eastern Mediterranean: The company is advancing multiple high-return gas projects. The Leviathan field recently reached a final investment decision for an expansion that will double its capacity by the end of the decade, while the Aphrodite field offshore Cyprus has entered the front-end engineering design phase.
• Portfolio High-Grading: Executives signaled a renewed interest in opportunities in the Middle East and North Africa, including Libya and Iraq, citing more competitive fiscal terms. "We see a more attractive suite of opportunities out there," Wirth noted, emphasizing that any new investment must clear the company's high bar for returns.

Financially, Chevron reported Q4 adjusted earnings of $3.0 billion ($1.52 per share). The company reinforced its commitment to shareholder returns, announcing a 4% increase in the quarterly dividend and highlighting that over $100 billion has been returned to shareholders via dividends and buybacks over the past four years.

"Chevron is bigger, stronger, and more resilient than ever," Wirth concluded. "We're entering 2026 from a position of strength."

Market Voices: Analyst & Investor Reactions

David Chen, Energy Portfolio Manager at Horizon Capital: "The free cash flow generation here is exceptional, especially in this price environment. It validates their integrated model and capital discipline. The guided 7-10% production growth for '26 is aggressive but seems underpinned by tangible project rollouts. The Venezuela optionality is a fascinating, high-risk/high-reward wild card."

Sarah Jennings, Senior Analyst at ClearView Energy Partners: "The cost reduction numbers are impressive and appear structural. Integrating Hess while simultaneously streamlining the organization is no small feat. Their ability to maintain Permian output at over a million barrels a day while pivoting the focus to cash flow is the blueprint for mature shale operators."

Marcus Thorne, Editor of 'The Ethical Barrel' Blog: "It's all record profits and growth talk, but let's be clear: this is a company doubling down on fossil fuels at a critical juncture. The boast about Venezuelan production growth is particularly tone-deaf, leveraging geopolitical instability for barrel count. Their 'resilience' is built on locking in climate volatility for decades to come."

Rebecca Foster, Managing Director at PetroLogic Advisors: "The most underrated takeaway is the downstream performance—highest U.S. refinery throughput in two decades. That operational excellence, coupled with their ability to process advantaged crudes like Venezuelan heavy, provides a massive cash flow buffer. It's a classic integrated advantage playing out perfectly."

For further details, please refer to the full presentation and supplementary materials on chevron.com.