Chevron (CVX) timing effects expected to adversely affect Q1 earnings and cash flow from ops excluding working capital by about USD 2.7-3.7bln

Chevron's Q1 earnings are anticipated to be adversely affected by timing effects, with an impact of USD 2.7-3.7 billion on earnings and cash flow from operations excluding working capital.

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Chevron (CVX) timing effects expected to adversely affect Q1 earnings and cash flow from ops excluding working capital by about USD 2.7-3.7bln

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  • Upstream net oil-equivalent production expected at 3.8-3.9 MMBOED in Q1 2026.
  • Sees Q1 upstream commodity price impacts USD 1.6 -2.2bln.
  • Downstream earnings to include USD 350-400mln litigation reserve charge in Q1 2026.
  • Working capital is expected to result in a net outflow of USD 2-4bln in Q1.
  • Q1 Upstream production expected to be 3.8-3.9mln BOE/D.
  • Majority of negative timing effects are in downstream segment in Q1 and are expected to unwind in future periods.
Context

This significant downturn suggests weaker upstream commodity price impacts and downstream charges, which will likely weigh on investor sentiment in the near term, highlighting potential volatility in the energy sector and its broader market implications.

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