filings.toolsItem 1. Consolidated Financial Statements
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Item 1. Consolidated Financial Statements
CHEVRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
| Three Months Ended March 31 | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Millions of dollars, except per-share amounts) | |||||||||||||||||||||||
| Revenues and Other Income | |||||||||||||||||||||||
| Sales and other operating revenues | $ | 46,101 | $ | 46,580 | |||||||||||||||||||
| Income (loss) from equity affiliates | 820 | 1,441 | |||||||||||||||||||||
| Other income (loss) | 689 | 695 | |||||||||||||||||||||
| Total Revenues and Other Income | 47,610 | 48,716 | |||||||||||||||||||||
| Costs and Other Deductions | |||||||||||||||||||||||
| Purchased crude oil and products | 28,610 | 27,741 | |||||||||||||||||||||
| Operating expenses | 6,408 | 6,533 | |||||||||||||||||||||
| Selling, general and administrative expenses | 1,221 | 1,010 | |||||||||||||||||||||
| Exploration expenses | 187 | 129 | |||||||||||||||||||||
| Depreciation, depletion and amortization | 4,123 | 4,091 | |||||||||||||||||||||
| Taxes other than on income | 1,255 | 1,124 | |||||||||||||||||||||
| Interest and debt expense | 212 | 118 | |||||||||||||||||||||
| Other components of net periodic benefit costs | 11 | 48 | |||||||||||||||||||||
| Total Costs and Other Deductions | 42,027 | 40,794 | |||||||||||||||||||||
| Income (Loss) Before Income Tax Expense | 5,583 | 7,922 | |||||||||||||||||||||
| Income Tax Expense (Benefit) | 2,071 | 2,371 | |||||||||||||||||||||
| Net Income (Loss) | 3,512 | 5,551 | |||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 12 | 50 | |||||||||||||||||||||
| Net Income (Loss) Attributable to Chevron Corporation | $ | 3,500 | $ | 5,501 | |||||||||||||||||||
| Per Share of Common Stock | |||||||||||||||||||||||
| Net Income (Loss) Attributable to Chevron Corporation | |||||||||||||||||||||||
| - Basic | $ | 2.01 | $ | 2.99 | |||||||||||||||||||
| - Diluted | $ | 2.00 | $ | 2.97 | |||||||||||||||||||
| Weighted Average Number of Shares Outstanding (000s) | |||||||||||||||||||||||
| - Basic | 1,744,628 | 1,842,377 | |||||||||||||||||||||
| - Diluted | 1,751,441 | 1,849,116 | |||||||||||||||||||||
See accompanying notes to consolidated financial statements.
CHEVRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended March 31 | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Net Income (Loss) | $ | 3,512 | $ | 5,551 | |||||||||||||||||||
| Currency translation adjustment | 16 | (20) | |||||||||||||||||||||
| Unrealized holding gain (loss) on securities | |||||||||||||||||||||||
| Net gain (loss) arising during period | 5 | (6) | |||||||||||||||||||||
| Derivatives | |||||||||||||||||||||||
| Net derivatives gain (loss) on hedge transactions | (23) | (34) | |||||||||||||||||||||
| Reclassification to net income | 17 | (7) | |||||||||||||||||||||
| Income taxes on derivatives transactions | 2 | 9 | |||||||||||||||||||||
| Total | (4) | (32) | |||||||||||||||||||||
| Defined benefit plans | |||||||||||||||||||||||
| Actuarial gain (loss) | |||||||||||||||||||||||
| Amortization to net income of net actuarial loss and settlements | 38 | 62 | |||||||||||||||||||||
| Actuarial gain (loss) arising during period | (1) | — | |||||||||||||||||||||
| Prior service credits (cost) | |||||||||||||||||||||||
| Amortization to net income of net prior service costs and curtailments | (2) | (2) | |||||||||||||||||||||
| Prior service (costs) credits arising during period | — | — | |||||||||||||||||||||
| Defined benefit plans sponsored by equity affiliates - benefit (cost) | 9 | 4 | |||||||||||||||||||||
| Income (taxes) benefit on defined benefit plans | (10) | (11) | |||||||||||||||||||||
| Total | 34 | 53 | |||||||||||||||||||||
| Other Comprehensive Gain (Loss), Net of Tax | 51 | (5) | |||||||||||||||||||||
| Comprehensive Income (Loss) | 3,563 | 5,546 | |||||||||||||||||||||
| Comprehensive loss (income) attributable to noncontrolling interests | (12) | (50) | |||||||||||||||||||||
| Comprehensive Income (Loss) Attributable to Chevron Corporation | $ | 3,551 | $ | 5,496 |
See accompanying notes to consolidated financial statements.
CHEVRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
| At March 31, 2025 | At December 31, 2024 | |||||||||||||
| (Millions of dollars) | ||||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 4,638 | $ | 6,781 | ||||||||||
| Time deposits | 5 | 4 | ||||||||||||
| Accounts and notes receivable (less allowance: 2025 - $240; 2024 - $259) | 19,560 | 20,684 | ||||||||||||
| Inventories: | ||||||||||||||
| Crude oil and products | 6,600 | 6,490 | ||||||||||||
| Chemicals | 471 | 502 | ||||||||||||
| Materials, supplies and other | 2,096 | 2,082 | ||||||||||||
| Total inventories | 9,167 | 9,074 | ||||||||||||
| Prepaid expenses and other current assets | 5,204 | 4,368 | ||||||||||||
| Total Current Assets | 38,574 | 40,911 | ||||||||||||
| Long-term receivables (less allowance: 2025 - $216; 2024 - $352) | 942 | 877 | ||||||||||||
| Investments and advances | 49,150 | 47,438 | ||||||||||||
| Properties, plant and equipment, at cost | 348,820 | 345,933 | ||||||||||||
| Less: Accumulated depreciation, depletion and amortization | 200,696 | 198,134 | ||||||||||||
| Properties, plant and equipment, net | 148,124 | 147,799 | ||||||||||||
| Deferred charges and other assets | 15,011 | 14,854 | ||||||||||||
| Goodwill | 4,568 | 4,578 | ||||||||||||
| Assets held for sale | 28 | 481 | ||||||||||||
| Total Assets | $ | 256,397 | $ | 256,938 | ||||||||||
| Liabilities and Equity | ||||||||||||||
| Short-term debt | $ | 4,076 | $ | 4,406 | ||||||||||
| Accounts payable | 20,878 | 22,079 | ||||||||||||
| Accrued liabilities | 8,374 | 8,486 | ||||||||||||
| Federal and other taxes on income | 842 | 1,872 | ||||||||||||
| Other taxes payable | 1,532 | 1,715 | ||||||||||||
| Total Current Liabilities | 35,702 | 38,558 | ||||||||||||
| Long-term debt | 25,605 | 20,135 | ||||||||||||
| Deferred credits and other noncurrent obligations | 21,610 | 22,094 | ||||||||||||
| Noncurrent deferred income taxes | 19,594 | 19,137 | ||||||||||||
| Noncurrent employee benefit plans | 3,806 | 3,857 | ||||||||||||
| Total Liabilities***** | $ | 106,317 | $ | 103,781 | ||||||||||
| Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) | — | — | ||||||||||||
| Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at March 31, 2025 and December 31, 2024) | 1,832 | 1,832 | ||||||||||||
| Capital in excess of par value | 21,719 | 21,671 | ||||||||||||
| Retained earnings | 206,359 | 205,852 | ||||||||||||
| Accumulated other comprehensive losses | (2,709) | (2,760) | ||||||||||||
| Deferred compensation and benefit plan trust | (240) | (240) | ||||||||||||
| Treasury stock, at cost (696,282,675 and 673,664,306 shares at March 31, 2025 and December 31, 2024, respectively) | (77,717) | (74,037) | ||||||||||||
| Total Chevron Corporation Stockholders’ Equity | 149,244 | 152,318 | ||||||||||||
| Noncontrolling interests | 836 | 839 | ||||||||||||
| Total Equity | 150,080 | 153,157 | ||||||||||||
| Total Liabilities and Equity | $ | 256,397 | $ | 256,938 | ||||||||||
| * Refer to Note 12 Other Contingencies and Commitments. | ||||||||||||||
See accompanying notes to consolidated financial statements.
CHEVRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Operating Activities | |||||||||||
| Net Income (Loss) | $ | 3,512 | $ | 5,551 | |||||||
| Adjustments | |||||||||||
| Depreciation, depletion and amortization | 4,123 | 4,091 | |||||||||
| Dry hole expense | 112 | 28 | |||||||||
| Distributions more (less) than income from equity affiliates | 268 | (705) | |||||||||
| Net before-tax losses (gains) on asset retirements and sales | (19) | (30) | |||||||||
| Net foreign currency effects | 130 | (198) | |||||||||
| Deferred income tax provision | 480 | 688 | |||||||||
| Net decrease (increase) in operating working capital | (2,408) | (1,144) | |||||||||
| Decrease (increase) in long-term receivables | (40) | 27 | |||||||||
| Net decrease (increase) in other deferred charges | (172) | (300) | |||||||||
| Cash contributions to employee pension plans | (263) | (256) | |||||||||
| Other | (534) | (924) | |||||||||
| Net Cash Provided by Operating Activities | 5,189 | 6,828 | |||||||||
| Investing Activities | |||||||||||
| Acquisition of Hess Corporation common stock | (2,225) | — | |||||||||
| Capital expenditures | (3,927) | (4,089) | |||||||||
| Proceeds and deposits related to asset sales and returns of investment | 600 | 104 | |||||||||
| Net sales (purchases) of marketable securities | — | 45 | |||||||||
| Net repayment (borrowing) of loans by equity affiliates | (66) | (16) | |||||||||
| Net Cash Used for Investing Activities | (5,618) | (3,956) | |||||||||
| Financing Activities | |||||||||||
| Net borrowings (repayments) of short-term obligations | (400) | 1,836 | |||||||||
| Proceeds from issuances of long-term debt | 5,491 | 203 | |||||||||
| Repayments of long-term debt and other financing obligations | (61) | (1,012) | |||||||||
| Cash dividends - common stock | (2,984) | (3,003) | |||||||||
| Net contributions from (distributions to) noncontrolling interests | (11) | 4 | |||||||||
| Net sales (purchases) of treasury shares | (3,699) | (2,891) | |||||||||
| Net Cash Provided by (Used for) Financing Activities | (1,664) | (4,863) | |||||||||
| Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (3) | (72) | |||||||||
| Net Change in Cash, Cash Equivalents and Restricted Cash | (2,096) | (2,063) | |||||||||
| Cash, Cash Equivalents and Restricted Cash at January 1 | 8,262 | 9,275 | |||||||||
| Cash, Cash Equivalents and Restricted Cash at March 31 | $ | 6,166 | $ | 7,212 | |||||||
See accompanying notes to consolidated financial statements.
CHEVRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EQUITY
(Unaudited)
| (Millions of dollars) | Accumulated | Treasury | Chevron Corp. | Non- | |||||||||||||||||||
| Common | Retained | Other Comp. | Stock | Stockholders’ | Controlling | Total | |||||||||||||||||
| Three Months Ended March 31 | Stock**(1)** | Earnings | Income (Loss) | (at cost) | Equity | Interests | Equity | ||||||||||||||||
| Balance at December 31, 2023 | $ | 22,957 | $ | 200,025 | $ | (2,960) | $ | (59,065) | $ | 160,957 | $ | 972 | $ | 161,929 | |||||||||
| Treasury stock transactions | 92 | — | — | — | 92 | — | 92 | ||||||||||||||||
| Net income (loss) | — | 5,501 | — | — | 5,501 | 50 | 5,551 | ||||||||||||||||
| Cash dividends ($1.63 per share) | — | (3,003) | — | — | (3,003) | (3) | (3,006) | ||||||||||||||||
| Stock dividends | — | (6) | — | — | (6) | — | (6) | ||||||||||||||||
| Other comprehensive income | — | — | (5) | — | (5) | — | (5) | ||||||||||||||||
| Purchases of treasury shares(2) | — | — | — | (3,006) | (3,006) | — | (3,006) | ||||||||||||||||
| Issuances of treasury shares | (14) | — | — | 112 | 98 | — | 98 | ||||||||||||||||
| Other changes, net | — | (3) | — | — | (3) | 12 | 9 | ||||||||||||||||
| Balance at March 31, 2024 | $ | 23,035 | $ | 202,514 | $ | (2,965) | $ | (61,959) | $ | 160,625 | $ | 1,031 | $ | 161,656 | |||||||||
| Balance at December 31, 2024 | $ | 23,263 | $ | 205,852 | $ | (2,760) | $ | (74,037) | $ | 152,318 | $ | 839 | $ | 153,157 | |||||||||
| Treasury stock transactions | 103 | — | — | — | 103 | — | 103 | ||||||||||||||||
| Net income (loss) | — | 3,500 | — | — | 3,500 | 12 | 3,512 | ||||||||||||||||
| Cash dividends ($1.71 per share) | — | (2,984) | — | — | (2,984) | (15) | (2,999) | ||||||||||||||||
| Stock dividends | — | (9) | — | — | (9) | — | (9) | ||||||||||||||||
| Other comprehensive income | — | — | 51 | — | 51 | — | 51 | ||||||||||||||||
| Purchases of treasury shares(2) | — | — | — | (3,952) | (3,952) | — | (3,952) | ||||||||||||||||
| Issuances of treasury shares | (55) | — | — | 272 | 217 | — | 217 | ||||||||||||||||
| Other changes, net | — | — | — | — | — | — | — | ||||||||||||||||
| Balance at March 31, 2025 | $ | 23,311 | $ | 206,359 | $ | (2,709) | $ | (77,717) | $ | 149,244 | $ | 836 | $ | 150,080 | |||||||||
| (Number of Shares) | Common Stock - 2025 | Common Stock - 2024 | |||||||||||||||||||||
| Three Months Ended March 31 | Issued**(3)** | Treasury | Outstanding | Issued**(3)** | Treasury | Outstanding | |||||||||||||||||
| Balance at December 31 | 2,442,676,580 | (673,664,306) | 1,769,012,274 | 2,442,676,580 | (577,028,776) | 1,865,647,804 | |||||||||||||||||
| Purchases | — | (25,087,428) | (25,087,428) | — | (19,737,687) | (19,737,687) | |||||||||||||||||
| Issuances | — | 2,469,059 | 2,469,059 | — | 1,098,916 | 1,098,916 | |||||||||||||||||
| Balance at March 31 | 2,442,676,580 | (696,282,675) | 1,746,393,905 | 2,442,676,580 | (595,667,547) | 1,847,009,033 | |||||||||||||||||
(1) Beginning and ending balances for all periods include capital in excess of par, common stock issued at par for $1,832, and $(240) associated with Chevron’s Benefit Plan Trust. Changes reflect capital in excess of par.
(2) Includes excise tax on share repurchases.
(3) Beginning and ending total issued share balances include 14,168,000 shares associated with Chevron’s Benefit Plan Trust for all periods.
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. General
Basis of Presentation The accompanying consolidated financial statements of Chevron Corporation and its subsidiaries (together, Chevron or the company) have not been audited by an independent registered public accounting firm. In the opinion of the company’s management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. These adjustments were of a normal recurring nature. The results for the three-month period ended March 31, 2025, are not necessarily indicative of future financial results. The term “earnings” is defined as net income attributable to Chevron.
Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the company’s 2024 Annual Report on Form 10-K.
Note 2. Changes in Accumulated Other Comprehensive Losses
The change in Accumulated Other Comprehensive Losses (AOCL) presented on the Consolidated Balance Sheet and the impact of significant amounts reclassified from AOCL on information presented in the Consolidated Statement of Income for the three months ended March 31, 2025 and 2024, are reflected in the table below.
Changes in Accumulated Other Comprehensive Income (Loss) by Component**(1)**
| Currency Translation Adjustment | Unrealized Holding Gains (Losses) on Securities | Derivatives | Defined Benefit Plans | Total | ||||||||||||||||||||||||||||
| (Millions of dollars) | ||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (192) | $ | (11) | $ | 5 | $ | (2,762) | $ | (2,960) | ||||||||||||||||||||||
| Components of Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||
| Before Reclassifications | (20) | (6) | (25) | 14 | (37) | |||||||||||||||||||||||||||
| Reclassifications(2) (3) | — | — | (7) | 39 | 32 | |||||||||||||||||||||||||||
| Net Other Comprehensive Income (Loss) | (20) | (6) | (32) | 53 | (5) | |||||||||||||||||||||||||||
| Balance at March 31, 2024 | $ | (212) | $ | (17) | $ | (27) | $ | (2,709) | $ | (2,965) | ||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (259) | $ | (19) | $ | (14) | $ | (2,468) | $ | (2,760) | ||||||||||||||||||||||
| Components of Other Comprehensive Income (Loss): | ||||||||||||||||||||||||||||||||
| Before Reclassifications | 16 | 5 | (21) | 8 | 8 | |||||||||||||||||||||||||||
| Reclassifications(2) (3) | — | — | 17 | 26 | 43 | |||||||||||||||||||||||||||
| Net Other Comprehensive Income (Loss) | 16 | 5 | (4) | 34 | 51 | |||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | (243) | $ | (14) | $ | (18) | $ | (2,434) | $ | (2,709) |
(1)All amounts are net of tax.
(2)Refer to Note 14 Financial and Derivative Instruments for reclassified components of cash flow hedging.
(3)Refer to Note 8 Employee Benefits for reclassified components, including amortization of actuarial gains or losses, amortization of prior service costs, and settlement losses, totaling $36 that are included in employee benefit costs for the three months ended March 31, 2025. Related income taxes for the same period, totaling $10, are reflected in “Income Tax Expense (Benefit)” on the Consolidated Statement of Income. All other reclassified amounts were insignificant.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 3. Information Relating to the Consolidated Statement of Cash Flows
| Three Months Ended March 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Distributions more (less) than income from equity affiliates included the following: | |||||||||||
| Distributions from equity affiliates | $ | 1,088 | $ | 736 | |||||||
| (Income) loss from equity affiliates | (820) | (1,441) | |||||||||
| Distributions more (less) than income from equity affiliates | $ | 268 | $ | (705) | |||||||
| Net decrease (increase) in operating working capital was composed of the following: | |||||||||||
| Decrease (increase) in accounts and notes receivable | $ | 1,137 | $ | (606) | |||||||
| Decrease (increase) in inventories | (201) | (1,330) | |||||||||
| Decrease (increase) in prepaid expenses and other current assets | (769) | 255 | |||||||||
| Increase (decrease) in accounts payable and accrued liabilities | (1,307) | 538 | |||||||||
| Increase (decrease) in income and other taxes payable | (1,268) | (1) | |||||||||
| Net decrease (increase) in operating working capital | $ | (2,408) | $ | (1,144) | |||||||
| Net cash provided by operating activities included the following cash payments: | |||||||||||
| Interest on debt (net of capitalized interest) | $ | 124 | $ | 56 | |||||||
| Income taxes | 2,552 | 1,428 | |||||||||
| Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts: | |||||||||||
| Proceeds and deposits related to asset sales | $ | 593 | $ | 52 | |||||||
| Returns of investment from equity affiliates | 7 | 52 | |||||||||
| Proceeds and deposits related to asset sales and returns of investment | $ | 600 | $ | 104 | |||||||
| Net maturities of (investments in) time deposits consisted of the following gross amounts: | |||||||||||
| Investments in time deposits | $ | (4) | $ | — | |||||||
| Maturities of time deposits | 4 | — | |||||||||
| Net maturities of (investments in) time deposits | $ | — | $ | — | |||||||
| Net sales (purchases) of marketable securities consisted of the following gross amounts: | |||||||||||
| Marketable securities purchased | $ | — | $ | — | |||||||
| Marketable securities sold | — | 45 | |||||||||
| Net sales (purchases) of marketable securities | $ | — | $ | 45 | |||||||
| Net repayment (borrowing) of loans by equity affiliates consisted of the following gross amounts: | |||||||||||
| Borrowing of loans by equity affiliates | $ | (87) | $ | (46) | |||||||
| Repayment of loans by equity affiliates | 21 | 30 | |||||||||
| Net repayment (borrowing) of loans by equity affiliates | $ | (66) | $ | (16) | |||||||
| Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts: | |||||||||||
| Proceeds from issuances of short-term debt obligations | $ | 2,317 | $ | — | |||||||
| Repayments of short-term debt obligations | (1,933) | — | |||||||||
| Net borrowings (repayments) of short-term debt obligations with three months or less maturity | (784) | 1,836 | |||||||||
| Net borrowings (repayments) of short-term obligations | $ | (400) | $ | 1,836 | |||||||
| Net contributions from (distributions to) noncontrolling interests consisted of the following gross amounts: | |||||||||||
| Distributions to noncontrolling interests | $ | (15) | $ | (3) | |||||||
| Contributions from noncontrolling interests | 4 | 7 | |||||||||
| Net contributions from (distributions to) noncontrolling interests | $ | (11) | $ | 4 | |||||||
| Net sales (purchases) of treasury shares consisted of the following gross and net amounts: | |||||||||||
| Shares issued for share-based compensation plans | $ | 218 | $ | 87 | |||||||
| Shares purchased under share repurchase and executive compensation plans | (3,917) | (2,978) | |||||||||
| Net sales (purchases) of treasury shares | $ | (3,699) | $ | (2,891) |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The Consolidated Statement of Cash Flows excludes changes to the Consolidated Balance Sheet that did not affect cash.
The “Other” line in the Operating Activities section includes changes in asset retirement obligations, abandonment and decommissioning obligations associated with previously sold assets, postretirement benefits obligations, and other long-term liabilities.
The company paid dividends of $1.71 per share of common stock in first quarter 2025. This compares to dividends of $1.63 per share paid in the year-ago corresponding period.
The components of “Capital expenditures” are presented in the following table:
| Three Months Ended March 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Additions to properties, plant and equipment | $ | 3,761 | $ | 3,864 | |||||||
| Additions to investments | 60 | 199 | |||||||||
| Current-year dry hole expenditures | 106 | 28 | |||||||||
| Payments for other assets and liabilities, net | — | (2) | |||||||||
| Capital expenditures | $ | 3,927 | $ | 4,089 |
The table below quantifies the beginning and ending balances of restricted cash and restricted cash equivalents in the Consolidated Balance Sheet:
| At March 31 | At December 31 | ||||||||||||||||||||||
| 2025 | 2024 | 2024 | 2023 | ||||||||||||||||||||
| (Millions of dollars) | (Millions of dollars) | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 4,638 | $ | 6,278 | $ | 6,781 | $ | 8,178 | |||||||||||||||
| Restricted cash included in “Prepaid expenses and other current assets” | 325 | 127 | 281 | 275 | |||||||||||||||||||
| Restricted cash included in “Deferred charges and other assets” | 1,203 | 807 | 1,200 | 822 | |||||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 6,166 | $ | 7,212 | $ | 8,262 | $ | 9,275 |
Additional information related to restricted cash is included in Note 13 Fair Value Measurements under the heading “Restricted Cash.”
Note 4. New Accounting Standards
Income Taxes (Topic 740) Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which becomes effective for fiscal years beginning after December 15, 2024. The standard requires companies to disclose specific categories in the income tax rate reconciliation table and the amount of income taxes paid per major jurisdiction. The company does not expect the standard to have a material effect on its consolidated financial statements and continues to evaluate disclosure presentation alternatives.
Income Statement (Topic 220) Reporting Comprehensive Income - Expense Disaggregation Disclosures In November 2024, the FASB issued ASU 2024-03, which becomes effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The standard requires companies to disclose disaggregated information about certain income statement expense line items. The company does not expect the standard to have a material effect on its consolidated financial statements and has begun evaluating disclosure presentation alternatives.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 5. Summarized Financial Data — Tengizchevroil LLP
Chevron has a 50 percent equity ownership interest in Tengizchevroil LLP (TCO). Summarized financial information for 100 percent of TCO is presented in the following table:
| Three Months Ended March 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Sales and other operating revenues | $ | 5,247 | $ | 5,056 | |||||||
| Costs and other deductions | 4,032 | 2,645 | |||||||||
| Net income attributable to TCO | $ | 879 | $ | 1,706 |
Note 6. Summarized Financial Data — Chevron U.S.A. Inc.
Chevron U.S.A. Inc. (CUSA) is a major subsidiary of Chevron Corporation. CUSA and its subsidiaries manage and operate most of Chevron’s U.S. businesses. Assets include those related to the exploration and production of crude oil, natural gas liquids and natural gas and those associated with refining, marketing, and supply and distribution of products derived from petroleum, excluding most of the regulated pipeline operations of Chevron. CUSA also holds the company’s investment in the Chevron Phillips Chemical LLC (CPChem) joint venture, which is accounted for using the equity method.
The summarized financial information for CUSA and its consolidated subsidiaries is as follows:
| Three Months Ended March 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Sales and other operating revenues | $ | 34,983 | $ | 36,490 | |||||||
| Costs and other deductions | 33,683 | 34,947 | |||||||||
| Net income (loss) attributable to CUSA | $ | 1,111 | $ | 1,392 | |||||||
| At March 31, 2025 | At December 31, 2024 | ||||||||||
| (Millions of dollars) | |||||||||||
| Current assets | $ | 20,648 | $ | 20,153 | |||||||
| Other assets | 59,487 | 58,485 | |||||||||
| Current liabilities | 19,574 | 25,825 | |||||||||
| Other liabilities | 27,136 | 21,455 | |||||||||
| Total CUSA net equity | $ | 33,425 | $ | 31,358 | |||||||
| Memo: Total debt | $ | 14,444 | $ | 8,917 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 7. Operating Segments and Geographic Data
Although each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. “All Other” activities of the company include worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology activities.
The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM), which is comprised of the company’s Executive Committee, as referenced under “Item 10. Directors, Executive Officers and Corporate Governance” on page 32 of the company’s 2024 Annual Report on Form 10-K.
The segments represent components of the company that engage in activities from which revenues are earned and expenses are incurred. Each segment has discrete financial information available. The CODM regularly reviews the operating results of these segments to assess their performance and make decisions about resources to be allocated to the segments. The company's primary country of operation is the United States of America, its country of domicile, while other components of the company's operations are reported as “International” (outside the United States).
Segment Sales and Other Operating Revenues Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil, natural gas and natural gas liquids (NGLs), as well as the sale of third-party production of natural gas. Revenues for the downstream segment are derived from the refining and marketing of petroleum products such as gasoline, jet fuel, gas oils, lubricants, residual fuel oils, and other products derived from crude oil. This segment also generates revenues from the manufacture and sale of fuel and lubricant additives, renewable fuels, and the transportation and trading of refined products and crude oil. “All Other” activities include revenues from insurance operations, real estate activities, and technology companies.
Segment Expenses Purchased crude oil and products, operating and selling, general and administrative (SG&A) expense, and depreciation, depletion and amortization are the company’s significant segment expenses. Operating and SG&A expenses include transportation, employee costs, service and fees, fuel and utilities, materials and supplies, SG&A expenses, and other components of net periodic benefit costs. Other costs and deductions primarily represent taxes other than on income, exploration expense, and interest and debt expenses.
Segment Earnings The company evaluates the performance of its operating segments on an after-tax basis, without considering the effects of debt financing interest expense or investment interest income, both of which are managed by the company on a worldwide basis. Corporate administrative costs are not allocated to the operating segments. However, operating segments are billed for the direct use of corporate services. Non-billable costs remain at the corporate level in “All Other.”
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Segmented income statements for the three months ended March 31, 2025 and 2024 are presented below:
| Upstream | Downstream | Segment Total | All Other | Total | |||||||||||||||||||
| Three Months Ended March 31, 2025 | U.S. | Int'l. | U.S. | Int'l. | |||||||||||||||||||
| Sales and other operating revenues before elimination | $ | 11,515 | $ | 9,971 | $ | 18,705 | $ | 17,266 | $ | 57,457 | $ | 120 | $ | 57,577 | |||||||||
| Intersegment revenue elimination | (7,112) | (1,953) | (1,888) | (422) | (11,375) | (101) | (11,476) | ||||||||||||||||
| Sales and Other Operating Revenues | 4,403 | 8,018 | 16,817 | 16,844 | 46,082 | 19 | 46,101 | ||||||||||||||||
| Income (loss) from equity affiliates | (8) | 714 | 150 | (28) | 828 | (8) | 820 | ||||||||||||||||
| Other income (loss)1 | 26 | 220 | 49 | 7 | 302 | 387 | 689 | ||||||||||||||||
| Total Revenues and Other Income | 4,421 | 8,952 | 17,016 | 16,823 | 47,212 | 398 | 47,610 | ||||||||||||||||
| Intersegment product transfers2 | 6,461 | 369 | (6,978) | 63 | (85) | 85 | — | ||||||||||||||||
| Less expenses: | |||||||||||||||||||||||
| Purchased crude oil and products | 3,909 | 2,802 | 7,262 | 14,637 | 28,610 | — | 28,610 | ||||||||||||||||
| Operating and SG&A expenses | 2,123 | 1,257 | 2,255 | 1,264 | 6,899 | 741 | 7,640 | ||||||||||||||||
| Depreciation, depletion and amortization | 2,023 | 1,697 | 242 | 74 | 4,036 | 87 | 4,123 | ||||||||||||||||
| Other costs and deductions3 | 386 | 257 | 171 | 562 | 1,376 | 278 | 1,654 | ||||||||||||||||
| Total Costs and Other Deductions | 8,441 | 6,013 | 9,930 | 16,537 | 40,921 | 1,106 | 42,027 | ||||||||||||||||
| Income Tax Expense (Benefit) | 578 | 1,406 | 5 | 122 | 2,111 | (40) | 2,071 | ||||||||||||||||
| Less: Net income (loss) attributable to non-controlling interests | 5 | 2 | — | 5 | 12 | — | 12 | ||||||||||||||||
| Net Income (Loss) Attributable to Chevron Corporation | $ | 1,858 | $ | 1,900 | $ | 103 | $ | 222 | $ | 4,083 | $ | (583) | $ | 3,500 | |||||||||
| Values have been adjusted for eliminations, unless otherwise specified. | |||||||||||||||||||||||
| 1 Includes interest income of $69 in “All Other.” | |||||||||||||||||||||||
| 2 Valuation of product transfers between operating segments. | |||||||||||||||||||||||
| 3 Includes interest expense of $192 in “All Other.” |
| Upstream | Downstream | Segment Total | All Other | Total | |||||||||||||||||||
| Three Months Ended March 31, 2024 | U.S. | Int'l. | U.S. | Int'l. | |||||||||||||||||||
| Sales and other operating revenues before elimination | $ | 11,167 | $ | 10,783 | $ | 20,240 | $ | 18,091 | $ | 60,281 | $ | 121 | $ | 60,402 | |||||||||
| Intersegment revenue elimination | (7,589) | (2,925) | (2,707) | (507) | (13,728) | (94) | (13,822) | ||||||||||||||||
| Sales and Other Operating Revenues | 3,578 | 7,858 | 17,533 | 17,584 | 46,553 | 27 | 46,580 | ||||||||||||||||
| Income (loss) from equity affiliates | (20) | 1,108 | 262 | 93 | 1,443 | (2) | 1,441 | ||||||||||||||||
| Other income (loss)1 | 63 | 338 | 90 | 23 | 514 | 181 | 695 | ||||||||||||||||
| Total Revenues and Other Income | 3,621 | 9,304 | 17,885 | 17,700 | 48,510 | 206 | 48,716 | ||||||||||||||||
| Intersegment product transfers2 | 6,423 | 945 | (6,691) | (653) | 24 | (24) | — | ||||||||||||||||
| Less expenses: | |||||||||||||||||||||||
| Purchased crude oil and products | 3,337 | 1,904 | 8,008 | 14,492 | 27,741 | — | 27,741 | ||||||||||||||||
| Operating and SG&A expenses | 1,751 | 1,524 | 2,239 | 1,528 | 7,042 | 549 | 7,591 | ||||||||||||||||
| Depreciation, depletion and amortization | 1,835 | 1,900 | 218 | 76 | 4,029 | 62 | 4,091 | ||||||||||||||||
| Other costs and deductions3 | 435 | 159 | 148 | 449 | 1,191 | 180 | 1,371 | ||||||||||||||||
| Total Costs and Other Deductions | 7,358 | 5,487 | 10,613 | 16,545 | 40,003 | 791 | 40,794 | ||||||||||||||||
| Income Tax Expense (Benefit) | 604 | 1,596 | 128 | 131 | 2,459 | (88) | 2,371 | ||||||||||||||||
| Less: Net income (loss) attributable to non-controlling interests | 7 | 2 | — | 41 | 50 | — | 50 | ||||||||||||||||
| Net Income (Loss) Attributable to Chevron Corporation | $ | 2,075 | $ | 3,164 | $ | 453 | $ | 330 | $ | 6,022 | $ | (521) | $ | 5,501 | |||||||||
| Values have been adjusted for eliminations, unless otherwise specified. | |||||||||||||||||||||||
| 1 Includes interest income of $85 in “All Other.” | |||||||||||||||||||||||
| 2 Valuation of product transfers between operating segments. | |||||||||||||||||||||||
| 3 Includes interest expense of $109 in “All Other.” |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Segment Assets Segment assets do not include intercompany investments or intercompany receivables. Segment assets at March 31, 2025, and December 31, 2024, are as follows:
| At March 31, 2025 | At December 31, 2024 | ||||||||||
| Segment Assets | (Millions of dollars) | ||||||||||
| Upstream | |||||||||||
| United States | $ | 61,237 | $ | 60,914 | |||||||
| International | 121,555 | 123,343 | |||||||||
| Goodwill | 4,216 | 4,226 | |||||||||
| Total Upstream | 187,008 | 188,483 | |||||||||
| Downstream | |||||||||||
| United States | 34,805 | 34,253 | |||||||||
| International | 21,910 | 22,165 | |||||||||
| Goodwill | 352 | 352 | |||||||||
| Total Downstream | 57,067 | 56,770 | |||||||||
| Total Segment Assets | 244,075 | 245,253 | |||||||||
| All Other | |||||||||||
| United States | 10,535 | 8,382 | |||||||||
| International | 1,787 | 3,303 | |||||||||
| Total All Other | 12,322 | 11,685 | |||||||||
| Total Assets — United States | 106,577 | 103,549 | |||||||||
| Total Assets — International | 145,252 | 148,811 | |||||||||
| Goodwill | 4,568 | 4,578 | |||||||||
| Total Assets | $ | 256,397 | $ | 256,938 | |||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 8. Employee Benefits
Chevron has defined benefit pension plans for many employees. The company typically prefunds defined benefit plans as required by local regulations or in certain situations where prefunding provides economic advantages. In the United States, all qualified plans are subject to the Employee Retirement Income Security Act minimum funding standard. The company does not typically fund U.S. nonqualified pension plans that are not subject to funding requirements under laws and regulations because contributions to these pension plans may be less economic and investment returns may be less attractive than the company’s other investment alternatives.
The company also sponsors other postretirement employee benefit (OPEB) plans that provide medical and dental benefits, as well as life insurance for qualifying retired employees. The plans are unfunded, and the company and the retirees share the costs. For the company’s main U.S. medical plan, the increase to the pre-Medicare company contribution for retiree medical coverage is limited to no more than four percent each year. Certain life insurance benefits are paid by the company.
The components of net periodic benefit costs for 2025 and 2024 are as follows:
| Three Months Ended March 31 | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||
| Pension Benefits | |||||||||||||||||||||||
| United States | |||||||||||||||||||||||
| Service cost | $ | 90 | $ | 89 | |||||||||||||||||||
| Interest cost | 124 | 116 | |||||||||||||||||||||
| Expected return on plan assets | (174) | (149) | |||||||||||||||||||||
| Amortization of prior service costs (credits) | 1 | 1 | |||||||||||||||||||||
| Amortization of actuarial losses (gains) | 30 | 61 | |||||||||||||||||||||
| Total United States | 71 | 118 | |||||||||||||||||||||
| International | |||||||||||||||||||||||
| Service cost | 14 | 14 | |||||||||||||||||||||
| Interest cost | 48 | 47 | |||||||||||||||||||||
| Expected return on plan assets | (47) | (50) | |||||||||||||||||||||
| Amortization of prior service costs (credits) | 3 | 3 | |||||||||||||||||||||
| Amortization of actuarial losses (gains) | 12 | 5 | |||||||||||||||||||||
| Total International | 30 | 19 | |||||||||||||||||||||
| Net Periodic Pension Benefit Costs | $ | 101 | $ | 137 | |||||||||||||||||||
| Other Benefits* | |||||||||||||||||||||||
| Service cost | $ | 7 | $ | 8 | |||||||||||||||||||
| Interest cost | 25 | 25 | |||||||||||||||||||||
| Amortization of prior service costs (credits) | (6) | (6) | |||||||||||||||||||||
| Amortization of actuarial losses (gains) | (4) | (4) | |||||||||||||||||||||
| Net Periodic Other Benefit Costs | $ | 22 | $ | 23 |
- Includes costs for U.S. and international OPEB plans. Obligations for plans outside the United States are not significant relative to the company’s total OPEB obligation.
Through March 31, 2025, a total of $263 million was contributed to employee pension plans (including $235 million to the U.S. plans). Total contributions for the full year are currently estimated to be up to $550 million ($450 million for the U.S. plans and $100 million for the international plans). Contribution amounts are dependent upon plan investment returns, changes in pension obligations, regulatory requirements, and other
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.
During the first three months of 2025, the company contributed $42 million to its OPEB plans.
Note 9. Assets Held For Sale
At March 31, 2025, the company classified $28 million net properties, plant and equipment as “Assets held for sale” on the Consolidated Balance Sheet. These assets are associated with downstream operations that are anticipated to be sold in the next 12 months. The revenues and earnings contributions of these assets in 2024 and the first three months of 2025 were not material.
Note 10. Income Taxes
The income tax expense decreased $300 million between quarterly periods from $2.4 billion in 2024 to $2.1 billion in 2025. The company’s income before income tax expense decreased $2.3 billion from $7.9 billion in 2024 to $5.6 billion in 2025, primarily due to lower equity affiliate earnings, lower downstream margins, lower upstream realizations, unfavorable foreign currency effects, and lower upstream sales volumes. The company’s effective tax rate increased between quarterly periods from 30 percent in 2024 to 37 percent in 2025. The change in effective tax rate was primarily due to the absence of prior period favorable tax items, current period unfavorable tax items and mix effects, resulting from the absolute level of earnings or losses and whether they arose in higher or lower tax rate jurisdictions.
The company engages in ongoing discussions with tax authorities regarding the resolution of tax matters in various jurisdictions. Both the outcome of these tax matters and the timing of resolution and/or closure of the tax audits are highly uncertain. Given the number of years that still remain subject to examination and the number of matters being examined in the various tax jurisdictions, the company is unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 11. Litigation
Climate Change
Governmental and other plaintiffs in various jurisdictions across the United States have brought legal proceedings against fossil fuel producing companies, including Chevron entities, purporting to seek legal and equitable relief to address alleged impacts of climate change. Chevron entities are or were among the codefendants in 33 separate lawsuits filed by various U.S. cities and counties, five U.S. states, the District of Columbia, the Commonwealth of Puerto Rico, two Native American tribes, and a trade group in both federal and state courts.1 The lawsuits have asserted various causes of action, including public nuisance, private nuisance, failure to warn, fraud, conspiracy to commit fraud, design defect, product defect, trespass, negligence, impairment of public trust, equitable relief for pollution, impairment and destruction of natural resources, unjust enrichment, violations of consumer and environmental protection statutes, violations of unfair competition statutes, violations of a federal antitrust statute, and violations of federal and state RICO statutes, based upon, among other things, the company’s production of oil and gas products and alleged misrepresentations or omissions relating to climate change risks associated with those products. Further such proceedings are likely to be brought by other parties. While defendants have sought to remove cases filed in state court to federal court, most of those cases have been remanded to state court and the U.S. Supreme Court has denied petitions for writ of certiorari on jurisdictional questions to date. The U.S. Supreme Court has also denied petitions for certiorari to review a decision from the Hawaii Supreme Court allowing claims brought by the City and County of Honolulu to proceed past the pleadings. The unprecedented legal theories set forth in these proceedings include claims for damages (both compensatory and punitive), injunctive and other forms of equitable relief, including without limitation abatement, contribution to abatement funds, disgorgement of profits and equitable relief for pollution, impairment and destruction of natural resources, civil penalties and liability for fees and costs of suits. Due to the unprecedented nature of the suits, the company is unable to estimate any range of possible liability, but given the uncertainty of litigation there can be no assurance that the cases will not have a material adverse effect on the company’s results of operations and financial condition. Management believes that these proceedings are legally and factually meritless and detract from constructive efforts to address the important policy issues presented by climate change and will vigorously defend against such proceedings.
1 The cases are: Municipality of Bayamon et al. v. Exxon Mobil Corp., et al., No. 22-cv-1550 (D.P.R.); City of Annapolis v. BP P.L.C., et al., No. C-02-CV-21-000250 (Md. Cir. Ct.) (dismissed on the merits; Plaintiff’s appeal pending); Anne Arundel County v. BP P.L.C., et al., No. C-02-CV-21-000565 (Md. Cir. Ct.) (dismissed on the merits; Plaintiff’s appeal pending); Mayor and City Council of Baltimore v. BP P.L.C., et al., No. 24-C-18-004219 (Md. Cir. Ct.) (dismissed on the merits; Plaintiff’s appeal pending); People ex rel. Bonta v. Exxon Mobil Corp., et al., No. CGC-23-609134 (Cal. Super. Ct.); Bucks County v. BP P.L.C., et al., No. 2024-01836 (Pa. Ct. Com. Pl.); City of Charleston v. Brabham Oil Co., et al., No. 2020-CP-10-3975 (S.C. Ct. of Com. Pl.); District of Columbia v. Exxon Mobil Corp., et al., No. 2020-CA-002892-B (D.C. Super. Ct.); Delaware ex rel. Jennings v. BP America Inc., et al., C.A. No. N20C-09-097 (Del. Super. Ct.) (dismissed on the merits in substantial part; appeal may be filed); City of Hoboken v. Exxon Mobil Corp., et al., No. HUD-L-003179-20 (N.J. Super. Ct.); City and County of Honolulu, et al. v. Sunoco LP, et al., No. 1CCV-20-0000380 (Haw. Cir. Ct.); City of Imperial Beach v. Chevron Corp., et al., No. C17-01227 (Cal. Super. Ct.); King County v. BP P.L.C., et al., No. 18-2-11859-0 (Wash. Super. Ct.) (voluntarily dismissed); Makah Indian Tribe v. Exxon Mobil Corp., et al., No. 23-25216-1-SEA (Wash. Super. Ct.); County of Marin v. Chevron Corp., et al., No. 17-cv-02586 (Cal. Super. Ct.); County of Maui v. Sunoco LP, et al., No. 2CCV-20-0000283 (Haw. Cir. Ct.); County of Multnomah v. Exxon Mobil Corp., et al., No. 23-cv-25164 (Or. Cir. Ct.); Municipality of San Juan, Puerto Rico v. Exxon Mobil Corp., et al., No. 23-cv-01608 (D.P.R.); City of Oakland v. BP P.L.C., et al., No. RG17875889 (Cal. Super. Ct.); Platkin, et al. v. Exxon Mobil Corp., et al., No. MER-L-001797-22 (N.J. Super. Ct.) (dismissed on the merits; Plaintiff’s appeal pending); Estado Libre Asociado de Puerto Rico [Commonwealth of Puerto Rico] v. Exxon Mobil Corp., et al., No. SJ2024CV06512 (Tribunal de Primera Instancia, Estado Libre Asociado de P.R.) [P.R. Ct. of First Instance, Commonwealth of P.R.] (voluntarily dismissed); City of New York v. Chevron Corp., et al., No. 18-cv-00182 (S.D.N.Y.) (dismissed on the merits); Pacific Coast Federation of Fishermen’s Associations, Inc. v. Chevron Corp., et al., No. CGC-18-571285 (Cal. Super. Ct.) (voluntarily dismissed); State of Rhode Island v. Chevron Corp., et al., C.A. No. PC-2018-4716 (R.I. Super. Ct.); City of Richmond v. Chevron Corp., et al., No. C18-00055 (Cal. Super. Ct.); City of San Francisco v. BP P.L.C., et al., No. CGC-17-561370 (Cal. Super. Ct.); County of San Mateo v. Chevron Corp., et al., No. 17-CIV-03222 (Cal. Super. Ct.); City of Santa Cruz v. Chevron Corp., et al., No. 17-CV-03243 (Cal. Super. Ct.); County of Santa Cruz v. Chevron Corp., et al., No. 17-CV-03242 (Cal. Super. Ct.); Shoalwater Bay Indian Tribe v. Exxon Mobil Corp., et al., No. 23-2-25215-2-SEA (Wash. Super. Ct.); City of Chicago v. BP P.L.C., et al., No. 2024CH01024 (Ill. Cir. Ct.); Maine v. BP P.L.C. et al., No. PORSC-CV-24-442 (Me. Super. Ct.); State of Hawaii v. BP P.L.C.**, et al., 1CCV-25-0000717 (Haw. Cir. Ct.).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Louisiana
Seven coastal parishes and the State of Louisiana have filed lawsuits in Louisiana against numerous oil and gas companies seeking remediation damages for coastal erosion in or near oil fields located within Louisiana’s coastal zone under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA). Chevron entities are defendants in 37 of these cases.2 The lawsuits allege that the defendants’ historical operations were conducted without necessary permits or failed to comply with permits obtained and seek remediation damages and other relief, including the costs of restoring coastal wetlands allegedly impacted by oil field operations. Further such proceedings may be brought by other parties. The United States Supreme Court denied a petition for writ of certiorari on certain jurisdictional questions impacting some of these cases, and those cases have been or will be remanded to Louisiana state court. Other federal jurisdictional questions are on petition for review to the United States Supreme Court. In April 2025, a jury in a Louisiana state court awarded Plaquemines Parish $744.6 million in a trial against Chevron entities. The company denies this liability and plans to appeal any judgment based on the jury verdict. The jury’s decision was unique to the facts and circumstances of the case and may not be representative of future outcomes for other claims brought against Chevron entities under the SLCRMA. In accordance with guidance on the evaluation of loss contingencies, the company has recorded an accrual of $131 million, which the company believes to be a reasonably estimable loss in light of the available defenses. It is reasonably possible that the estimate of the loss could change based on the progression of the case, including the appeals process. However, because of the uncertainties associated with ongoing litigation, we are unable to estimate the range of reasonably possible loss that may be attributable to liabilities, if any, in excess of the amount accrued. While the company believes the jury verdict is not legally or factually supported and intends to appeal and vigorously pursue post-judgment remedies, there can be no assurances that such defense efforts will be successful. To the extent the company is required to pay remediation damages in these cases, it may have a material adverse effect on our financial position and results of operations. Management believes that the claims in these lawsuits lack legal and factual merit and will continue to vigorously defend against such proceedings.
2 The cases are: Jefferson Parish v. Atlantic Richfield Company, et al., No. 732-768 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. Chevron U.S.A. Holdings, Inc., et al., No. 732-769 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. Destin Operating Company, Inc., et al., No. 732-770 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. Canlan Oil Company, et al., No. 732-771 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. Anadarko E&P Onshore LLC, et al., No. 732-772 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. ExxonMobil Corporation, et al., No. 732-774 (24th Jud. Dist. Ct., Jefferson Par.); Jefferson Parish v. Equitable Petroleum Corporation, et al., No. 732-775 (24th Jud. Dist. Ct., Jefferson Par.); Plaquemines Parish v. ConocoPhillips Co., et al., No. 60-982 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. HHE Energy Co., et al., No. 60-983 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Exchange Oil & Gas Corp., et al., No. 60-984 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. LLOG Exploration & Production Co., et al., No. 60-985 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Equitable Petroleum Corporation, et al., No. 60-986 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. June Energy, et al., No. 60-987 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Linder Oil Company, et al., No. 60-988 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Riverwood Production Company, et al., No. 60-989 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Helis Oil & Gas Company, et al., No. 60-990 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Northcoast Oil Company, et al., No. 60-992 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Goodrich Petroleum Company, L.L.C., et al., No. 60-994 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Devon Energy Production Company, L.P., et al., No. 60-995 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Rozel Operating Co., et al., No. 60-996 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Palm Energy Offshore, L.L.C., et al., No. 60-997 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Great Southern Oil & Gas Company, Inc., et al., No. 60-998 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Hilcorp Energy Company, et al., No. 60-999 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Apache Oil Corporation, et al., No. 61-000 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. Campbell Energy Corporation, et al., No. 61-001 (25th Jud. Dist. Ct., Plaquemines Par.); Plaquemines Parish v. TotalPetrochemicals & Refining USA, Inc., et al., No. 61-002 (25th Jud. Dist. Ct., Plaquemines Par.); Cameron Parish v. Alpine Exploration Companies, Inc., et al., No. 10-19580 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. Apache Corporation (of Delaware), et al., No. 10-19579 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. Ballard Exploration Company, Inc., et al., No. 10-19574 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. Bay Coquille, Inc., et al., No. 10-19581 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. BEPCO, LP, et al., No. 10-19572 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. BP America Production Company, et al., No. 10-19576 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. Brammer Engineering, Inc., et al., No. 10-19573 (38th Jud. Dist. Ct., Cameron Par.); Cameron Parish v. Burlington Resources, et al., No. 10-19575 (38th Jud. Dist. Ct., Cameron Par.); Stutes v. Gulfport Energy Corporation, et al., No. 102,146 (15th Jud. Dist. Ct., Vermilion Par.); St. Bernard Parish v. Atlantic Richfield, et al., No. 16-1228 (34th Jud. Dist. Ct. St., Bernard Par.); City of New Orleans v. Apache Louisiana Mins, LLC, et al., No. 19-cv-08290, (E.D. La.).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 12. Other Contingencies and Commitments
Income Taxes The company calculates its income tax expense and liabilities quarterly. These liabilities generally are subject to audit and are not finalized with the individual taxing authorities until several years after the end of the annual period for which income taxes have been calculated.
Settlement of open tax years, as well as other tax issues in countries where the company conducts its businesses, are not expected to have a material effect on the consolidated financial position or liquidity of the company and, in the opinion of management, adequate provision has been made for income taxes for all years under examination or subject to future examination.
Guarantees The company and its subsidiaries have certain contingent liabilities with respect to guarantees, direct or indirect, of debt of affiliated companies or third parties. Under the terms of the guarantee arrangements, the company would generally be required to perform should the affiliated company or third party fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements may have recourse provisions that would enable the company to recover any payments made under the terms of the guarantees from assets provided as collateral.
Indemnification The company often includes standard indemnification provisions in its arrangements with its partners, suppliers and vendors in the ordinary course of business, the terms of which range in duration and sometimes are not limited. The company may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its service or other claims made against such parties.
Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements The company and its subsidiaries have certain contingent liabilities with respect to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which may relate to suppliers’ financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, utilities, and petroleum products, to be used or sold in the ordinary course of the company’s business.
Environmental The company is subject to loss contingencies pursuant to laws, regulations, private claims and legal proceedings related to environmental matters that are subject to legal settlements or that in the future may require the company to take action to correct or ameliorate the effects on the environment of prior release of chemicals or petroleum substances by the company or other parties. Such contingencies may exist for various operating, closed and divested sites, including, but not limited to, U.S. federal Superfund sites and analogous sites under state laws, refineries, chemical plants, marketing facilities, crude oil fields, and mining sites.
Although the company has provided for known environmental obligations that are probable and reasonably estimable, it is likely that the company will continue to incur additional liabilities. The amount of additional future costs are not fully determinable due to such factors as the unknown magnitude of possible contamination, the unknown timing and extent of the corrective actions that may be required, the determination of the company’s liability in proportion to other responsible parties, and the extent to which such costs are recoverable from third parties. These future costs may be material to results of operations in the period in which they are recognized, but the company does not expect these costs will have a material effect on its consolidated financial position or liquidity.
Decommissioning Obligations for Previously Divested Assets Some assets are divested along with their related liabilities, such as decommissioning obligations. In certain instances, such transferred obligations have returned and may continue to return to the company. To the extent the current owners of the company’s previously divested assets default on their decommissioning obligations, regulators may require that Chevron assume such obligations. The nature and amount of the loss is disclosed when it is reasonably possible that the loss could be material. The company accrues a liability when management determines the obligation to be both probable and reasonably estimable. The company could have additional significant obligations revert, primarily in the United States, but is not currently aware of any such obligations that are reasonably possible to be material. The liability balance at the end of first quarter 2025 is $2.4 billion.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Other Contingencies The company and its affiliates continue to review and analyze their operations and may close, retire, sell, exchange, acquire or restructure assets to achieve operational or strategic benefits and to improve competitiveness and profitability. These activities, individually or together, may result in significant gains or losses in future periods.
Chevron receives claims from and submits claims to customers; trading partners; joint venture partners; U.S. federal, state and local regulatory bodies; governments; contractors; insurers; suppliers; and individuals. The amounts of these claims, individually and in the aggregate, may be significant and take lengthy periods to resolve, and may result in gains or losses in future periods.
Note 13. Fair Value Measurements
The three levels of the fair value hierarchy of inputs the company uses to measure the fair value of an asset or liability are described as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the company, Level 1 inputs include exchange-traded futures contracts for which the parties are willing to transact at the exchange-quoted price and marketable securities that are actively traded.
Level 2: Inputs other than Level 1 that are observable, either directly or indirectly. For the company, Level 2 inputs include quoted prices for similar assets or liabilities, prices obtained through third-party broker quotes and prices that can be corroborated with other observable inputs for substantially the complete term of a contract.
Level 3: Unobservable inputs. The company does not use Level 3 inputs for any of its recurring fair value measurements. Level 3 inputs may be required for the determination of fair value associated with certain nonrecurring measurements of nonfinancial assets and liabilities.
The fair value hierarchy for assets and liabilities measured at fair value at March 31, 2025, and December 31, 2024, is as follows:
Assets and Liabilities Measured at Fair Value on a Recurring Basis
| At March 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
| Derivatives - not designated | $ | 99 | $ | 77 | $ | 22 | $ | — | $ | 137 | $ | 127 | $ | 10 | $ | — | |||||||||||||||||||||||||||||||
| Derivatives - designated | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Total Assets at Fair Value | $ | 99 | $ | 77 | $ | 22 | $ | — | $ | 137 | $ | 127 | $ | 10 | $ | — | |||||||||||||||||||||||||||||||
| Derivatives - not designated | 219 | 106 | 113 | — | 136 | 47 | 89 | — | |||||||||||||||||||||||||||||||||||||||
| Derivatives - designated | 23 | 23 | — | — | 17 | 17 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total Liabilities at Fair Value | $ | 242 | $ | 129 | $ | 113 | $ | — | $ | 153 | $ | 64 | $ | 89 | $ | — |
Derivatives The company records most of its derivative instruments — other than any commodity derivative contracts that are accounted for as normal purchase and normal sale — on the Consolidated Balance Sheet at fair value, with the offsetting amount to the Consolidated Statement of Income. The company designates certain derivative instruments as cash flow hedges that, if applicable, are reflected in the table above. Derivatives classified as Level 1 include futures, swaps and options contracts valued using quoted prices from active markets such as the New York Mercantile Exchange. Derivatives classified as Level 2 include swaps, options and forward contracts, the fair values of which are obtained from third-party broker quotes, industry pricing services, and exchanges. The company obtains multiple sources of pricing information for the Level 2 instruments. Since this pricing information is generated from observable market data, it has historically been very consistent. The company does not materially adjust this information.
Assets and liabilities carried at fair value at March 31, 2025, and December 31, 2024, are as follows:
Cash and Cash Equivalents The company holds cash equivalents in U.S. and non-U.S. portfolios. The instruments classified as cash equivalents are primarily bank deposits with maturities of 90 days or less, and money market funds. “Cash and cash equivalents” had carrying/fair values of $4.6 billion and $6.8 billion at
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
March 31, 2025, and December 31, 2024, respectively. The fair values of cash and cash equivalents are classified as Level 1 and reflect the cash that would have been received if the instruments were settled at March 31, 2025.
Restricted Cash had a carrying/fair value of $1.5 billion at both March 31, 2025 and December 31, 2024. At March 31, 2025, restricted cash is classified as Level 1 and includes primarily restricted funds related to certain upstream decommissioning activities, a tax-deferred transaction and financing programs that are reported in “Prepaid expenses and other current assets” and “Deferred charges and other assets” on the Consolidated Balance Sheet.
Investments in Hess Corporation (Hess) Common Stock are classified as Level 1, had a fair value of $2.5 billion at March 31, 2025, and are reflected in the “Investments and advances” line on the Consolidated Balance Sheet. During first quarter 2025, the company recognized a fair value gain of $232 million in “Other income (loss)” on the Consolidated Statement of Income.
Long-Term Debt excluding amounts reclassified from short-term debt and finance lease obligations had a net carrying value of $16.2 billion and $10.8 billion at March 31, 2025, and December 31, 2024, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of these obligations was $15.5 billion and $9.8 billion at March 31, 2025, and December 31, 2024, respectively. At March 31, 2025, the fair value of these obligations classified as Level 1 is $15.0 billion and Level 2 is $508 million.
The carrying values of other short-term financial assets and liabilities on the Consolidated Balance Sheet approximate their fair values. Fair value remeasurements of other financial instruments at March 31, 2025, and December 31, 2024, were not material.
Properties, plant and equipment The company did not have any individually material impairments of long- lived assets measured at fair value on a nonrecurring basis to report in first quarter 2025.
Investments and advances The company did not have any individually material impairments of investments and advances measured at fair value on a nonrecurring basis to report in first quarter 2025.
Note 14. Financial and Derivative Instruments
The company’s commodity derivative instruments principally include crude oil, natural gas, liquefied natural gas and refined product futures, swaps, options and forward contracts. The company applies cash flow hedge accounting to certain commodity transactions, where appropriate, to manage the market price risk associated with forecasted sales of crude oil. The company’s derivatives are not material to the company’s consolidated financial position, results of operations or liquidity. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodities and other derivatives activities.
The company uses commodity derivative instruments traded on the New York Mercantile Exchange and on electronic platforms of the Inter-Continental Exchange and Chicago Mercantile Exchange. In addition, the company enters into swap contracts and option contracts principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets, which are governed by International Swaps and Derivatives Association agreements and other master netting arrangements.
Derivative instruments measured at fair value at March 31, 2025, and December 31, 2024, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
| Consolidated Balance Sheet: Fair Value of Derivatives | ||||||||||||||||||||
| Type of | At March 31, 2025 | At December 31, 2024 | ||||||||||||||||||
| Contract | Balance Sheet Classification | (Millions of dollars) | ||||||||||||||||||
| Commodity | Accounts and notes receivable, net | $ | 55 | $ | 122 | |||||||||||||||
| Commodity | Long-term receivables, net | 44 | 15 | |||||||||||||||||
| Total Assets at Fair Value | $ | 99 | $ | 137 | ||||||||||||||||
| Commodity | Accounts payable | $ | 241 | $ | 127 | |||||||||||||||
| Commodity | Deferred credits and other noncurrent obligations | 1 | 26 | |||||||||||||||||
| Total Liabilities at Fair Value | $ | 242 | $ | 153 |
| Consolidated Statement of Income: The Effect of Derivatives | ||||||||||||||||||||||||||||||||
| Gain / (Loss) Three Months Ended March 31 | ||||||||||||||||||||||||||||||||
| Type of | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Contract | Statement of Income Classification | (Millions of dollars) | ||||||||||||||||||||||||||||||
| Commodity | Sales and other operating revenues | $ | (144) | $ | (158) | |||||||||||||||||||||||||||
| Commodity | Purchased crude oil and products | (44) | (64) | |||||||||||||||||||||||||||||
| Commodity | Other income (loss) | (6) | 13 | |||||||||||||||||||||||||||||
| $ | (194) | $ | (209) |
The amount reclassified from AOCL to “Sales and other operating revenues” from designated hedges for the first quarter of 2025 was a loss of $17 million compared with a gain of $7 million in the same period of the prior year. At March 31, 2025, before-tax deferred losses in AOCL related to outstanding crude oil price hedging contracts were $23 million, of which all is expected to be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings.
The following table represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at March 31, 2025, and December 31, 2024.
| Consolidated Balance Sheet: The Effect of Netting Derivative Assets and Liabilities | ||||||||||||||||||||||||||||||||
| Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Presented | Gross Amounts Not Offset | Net Amount | ||||||||||||||||||||||||||||
| At March 31, 2025 | (Millions of dollars) | |||||||||||||||||||||||||||||||
| Derivative Assets - not designated | $ | 2,597 | $ | 2,498 | $ | 99 | $ | 7 | $ | 92 | ||||||||||||||||||||||
| Derivative Assets - designated | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
| Derivative Liabilities - not designated | $ | 2,717 | $ | 2,498 | $ | 219 | $ | 7 | $ | 212 | ||||||||||||||||||||||
| Derivative Liabilities - designated | $ | 24 | $ | 1 | $ | 23 | $ | — | $ | 23 | ||||||||||||||||||||||
| At December 31, 2024 | ||||||||||||||||||||||||||||||||
| Derivative Assets - not designated | $ | 1,895 | $ | 1,758 | $ | 137 | $ | 3 | $ | 134 | ||||||||||||||||||||||
| Derivative Assets - designated | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
| Derivative Liabilities - not designated | $ | 1,894 | $ | 1,758 | $ | 136 | $ | 2 | $ | 134 | ||||||||||||||||||||||
| Derivative Liabilities - designated | $ | 17 | $ | — | $ | 17 | $ | — | $ | 17 |
Derivative assets and liabilities are classified on the Consolidated Balance Sheet as accounts and notes receivable, long-term receivables, accounts payable, and deferred credits and other noncurrent obligations. Amounts not offset on the Consolidated Balance Sheet represent positions that do not meet all the conditions for “a right of offset.”
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Note 15. Revenue
“Sales and other operating revenues” on the Consolidated Statement of Income primarily arise from contracts with customers. Related receivables are included in “Accounts and notes receivable” on the Consolidated Balance Sheet, net of the current expected credit losses. The net balance of these receivables was $13.2 billion and $14.2 billion at March 31, 2025, and December 31, 2024, respectively. Other items included in “Accounts and notes receivable” represent amounts due from partners for their share of joint venture operating and project costs and amounts due from others, primarily related to derivatives, leases, buy/sell arrangements, and product exchanges, which are accounted for outside the scope of Accounting Standard Codification (ASC) 606*.*
Note 16. Financial Instruments - Credit Losses
Chevron’s expected credit loss allowance balance was $456 million and $611 million at March 31, 2025, and December 31, 2024, respectively, with a majority of the allowance relating to non-trade receivable balances.
The majority of the company’s receivable balance is concentrated in trade receivables, with a balance of $17.2 billion at March 31, 2025, which reflects the company’s diversified sources of revenues and is dispersed across the company’s broad worldwide customer base. As a result, the company believes the concentration of credit risk is limited. The company routinely assesses the financial strength of its customers. When the financial strength of a customer is not considered sufficient, alternative risk mitigation measures may be deployed, including requiring prepayments, letters of credit or other acceptable forms of collateral. Once credit is extended and a receivable balance exists, the company applies a quantitative calculation to current trade receivable balances that reflects credit risk predictive analysis, including probability of default and loss given default, which takes into consideration current and forward-looking market data as well as the company’s historical loss data. This statistical approach becomes the basis of the company’s expected credit loss allowance for current trade receivables with payment terms that are typically short-term in nature, with most due in less than 90 days.
Chevron’s non-trade receivable balance was $3.8 billion at March 31, 2025, which includes receivables from certain governments in their capacity as joint venture partners. Joint venture partner balances that are paid per contract terms or are not yet due are subject to the statistical analysis described above, while past due balances are subject to additional qualitative management quarterly review. This management review includes review of reasonable and supportable repayment forecasts. Non-trade receivables also include employee and tax receivables that are deemed immaterial and low risk.
Note 17. Long-Term Debt
In the first quarter of 2025, the company issued $5.5 billion in aggregate principal amount of floating and fixed rate notes as detailed in the table below.
| Principal | |||||
| (Millions of dollars) | |||||
| 4.405% notes due 2027 | $ | 750 | |||
| Floating rate notes due 2027 | 750 | ||||
| 4.475% notes due 2028 | 1,000 | ||||
| Floating rate notes due 2028 | 500 | ||||
| 4.687% notes due 2030 | 1,100 | ||||
| 4.819% notes due 2032 | 650 | ||||
| 4.980% notes due 2035 | 750 | ||||
| Total Long-Term Debt Issued | $ | 5,500 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 18. Agreement to Acquire Hess Corporation
On October 23, 2023, Chevron Corporation announced it had entered into a definitive agreement with Hess Corporation (Hess) to acquire all of its outstanding shares in an all-stock transaction, pursuant to which Hess stockholders will receive 1.0250 shares of Chevron common stock for each Hess share. The transaction was unanimously approved by the Boards of Directors of both companies.
On May 28, 2024, a majority of Hess stockholders voted to approve the merger. Following the Federal Trade Commission’s (FTC) review of the transaction, on September 30, 2024, the FTC announced that a majority of the Commission voted to accept a consent agreement among the FTC, Chevron and Hess, resolving the concerns the FTC identified during its review of the transaction. On January 16, 2025, a majority of the FTC voted to finalize the consent order entered on September 30, 2024. Chevron and Hess filed a petition to set aside the consent order on March 27, 2025, which, if granted, would remove the restriction of John Hess serving on Chevron’s Board while maintaining Chevron’s clearance to close the transaction. Chevron and Hess have taken and will continue to take appropriate steps to maintain our ability to close the merger under the Hart-Scott-Rodino Act of 1976, as amended. The filing of an arbitration relating to the right of first refusal contained in the Stabroek Block operating agreement among Hess Guyana Exploration Limited, a wholly owned subsidiary of Hess, and affiliates of Exxon Mobil Corporation, and China National Offshore Oil Corporation has delayed completion of the transaction. An arbitration decision against Hess Guyana and in favor of Exxon Guyana and CNOOC Guyana would cause the transaction not to be completed. The arbitration merits hearing has been scheduled for May 2025, with a decision expected in approximately the following three months.
Chevron and Hess are working to complete the merger as soon as practicable. However, neither Chevron nor Hess can predict the actual date on which the transaction will be completed, if at all, because it is subject to conditions beyond each company’s control. See Item 1A. Risk Factors for a discussion of risks related to the Hess acquisition.
Note 19. Restructuring and Reorganization Costs
The following table summarizes the accrued severance liability on the Consolidated Balance Sheet, which is expected to be substantially settled by the end of 2026.
| Amounts Before Tax | |||||
| (Millions of dollars) | |||||
| Balance at January 1, 2025 | $ | 990 | |||
| Accruals/Adjustments | 3 | ||||
| Payments | (4) | ||||
| Balance at March 31, 2025 | $ | 989 | |||
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