Item 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 June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(Millions of dollars, except per-share amounts)
Revenues and Other Income
Sales and other operating revenues	$	44,375	$	49,574	$	90,476	$	96,154
Income (loss) from equity affiliates	536		1,206		1,356		2,647
Other income (loss)	(89)		401		600		1,096
Total Revenues and Other Income	44,822		51,181		92,432		99,897
Costs and Other Deductions
Purchased crude oil and products	26,858		30,867		55,468		58,608
Operating expenses	6,674		6,614		13,082		13,147
Selling, general and administrative expenses	889		1,048		2,110		2,058
Exploration expenses	252		263		439		392
Depreciation, depletion and amortization	4,344		4,004		8,467		8,095
Taxes other than on income	1,301		1,188		2,556		2,312
Interest and debt expense	274		113		486		231
Other components of net periodic benefit costs	83		48		94		96
Total Costs and Other Deductions	40,675		44,145		82,702		84,939
Income (Loss) Before Income Tax Expense	4,147		7,036		9,730		14,958
Income Tax Expense (Benefit)	1,632		2,593		3,703		4,964
Net Income (Loss)	2,515		4,443		6,027		9,994
Less: Net income (loss) attributable to noncontrolling interests	25		9		37		59
Net Income (Loss) Attributable to Chevron Corporation	$	2,490	$	4,434	$	5,990	$	9,935
Per Share of Common Stock
Net Income (Loss) Attributable to Chevron Corporation
- Basic	$	1.45	$	2.43	$	3.46	$	5.42
- Diluted	$	1.45	$	2.43	$	3.45	$	5.40
Weighted Average Number of Shares Outstanding (000s)
- Basic	1,719,184		1,825,842		1,731,836		1,834,110
- Diluted	1,724,397		1,833,431		1,737,844		1,841,274

See accompanying notes to consolidated financial statements.

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended June 30				Six Months Ended June 30
	2025		2024		2025		2024
	(Millions of dollars)
Net Income (Loss)	$	2,515	$	4,443	$	6,027	$	9,994
Currency translation adjustment	54		(12)		70		(32)
Unrealized holding gain (loss) on securities
Net gain (loss) arising during period	13		(3)		18		(9)
Derivatives
Net derivatives gain (loss) on hedge transactions	6		(17)		(17)		(51)
Reclassification to net income	23		34		40		27
Income taxes on derivatives transactions	(6)		(4)		(4)		5
Total	23		13		19		(19)
Defined benefit plans
Actuarial gain (loss)
Amortization to net income of net actuarial loss and settlements	37		62		75		124
Actuarial gain (loss) arising during period	35		—		34		—
Prior service credits (cost)
Amortization to net income of net prior service costs and curtailments	(1)		(3)		(3)		(5)
Prior service (costs) credits arising during period	—		—		—		—
Defined benefit plans sponsored by equity affiliates - benefit (cost)	—		(2)		9		2
Income (taxes) benefit on defined benefit plans	(19)		(14)		(29)		(25)
Total	52		43		86		96
Other Comprehensive Gain (Loss), Net of Tax	142		41		193		36
Comprehensive Income (Loss)	2,657		4,484		6,220		10,030
Comprehensive loss (income) attributable to noncontrolling interests	(25)		(9)		(37)		(59)
Comprehensive Income (Loss) Attributable to Chevron Corporation	$	2,632	$	4,475	$	6,183	$	9,971

See accompanying notes to consolidated financial statements.

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)


	At June 30, 2025		At December 31, 2024
	(Millions of dollars)
Assets
Cash and cash equivalents	$	4,061	$	6,781
Time deposits	5		4

Accounts and notes receivable (less allowance: 2025 - $188; 2024 - $259)	17,663		20,684
Inventories:
Crude oil and products	6,275		6,490
Chemicals	517		502
Materials, supplies and other	2,021		2,082
Total inventories	8,813		9,074
Prepaid expenses and other current assets	4,149		4,368
Total Current Assets	34,691		40,911
Long-term receivables (less allowance: 2025 - $217; 2024 - $352)	914		877
Investments and advances	48,033		47,438
Properties, plant and equipment, at cost	352,035		345,933
Less: Accumulated depreciation, depletion and amortization	204,593		198,134
Properties, plant and equipment, net	147,442		147,799
Deferred charges and other assets	15,144		14,854
Goodwill	4,568		4,578
Assets held for sale	28		481
Total Assets	$	250,820	$	256,938
Liabilities and Equity
Short-term debt	$	6,191	$	4,406
Accounts payable	18,609		22,079
Accrued liabilities	8,117		8,486
Federal and other taxes on income	659		1,872
Other taxes payable	1,251		1,715
Total Current Liabilities	34,827		38,558
Long-term debt	23,276		20,135

Deferred credits and other noncurrent obligations	21,893		22,094
Noncurrent deferred income taxes	19,708		19,137
Noncurrent employee benefit plans	3,858		3,857
Total Liabilities*****	$	103,562	$	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 June 30, 2025 and December 31, 2024)	1,832		1,832
Capital in excess of par value	21,803		21,671
Retained earnings	205,905		205,852
Accumulated other comprehensive losses	(2,567)		(2,760)
Deferred compensation and benefit plan trust	(240)		(240)
Treasury stock, at cost (714,686,204 and 673,664,306 shares at June 30, 2025 and December 31, 2024, respectively)	(80,316)		(74,037)
Total Chevron Corporation Stockholders’ Equity	146,417		152,318
Noncontrolling interests	841		839
Total Equity	147,258		153,157
Total Liabilities and Equity	$	250,820	$	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)


	Six Months Ended June 30
	2025		2024
	(Millions of dollars)
Operating Activities
Net Income (Loss)	$	6,027	$	9,994
Adjustments
Depreciation, depletion and amortization	8,467		8,095
Dry hole expense	177		209
Distributions more (less) than income from equity affiliates	1,176		(628)
Net before-tax losses (gains) on asset retirements and sales	(299)		(47)
Net foreign currency effects	470		(88)
Deferred income tax provision	509		1,142
Net decrease (increase) in operating working capital	(2,130)		(3,575)
Decrease (increase) in long-term receivables	(10)		19
Net decrease (increase) in other deferred charges	(227)		(559)
Cash contributions to employee pension plans	(444)		(454)
Other	49		(985)
Net Cash Provided by Operating Activities	13,765		13,123
Investing Activities


Acquisition of Hess Corporation common stock	(2,225)		—
Capital expenditures	(7,639)		(8,055)
Proceeds and deposits related to asset sales and returns of investment	990		218

Net sales (purchases) of marketable securities	—		45
Net repayment (borrowing) of loans by equity affiliates	(176)		(118)
Net Cash Used for Investing Activities	(9,050)		(7,910)
Financing Activities
Net borrowings (repayments) of short-term obligations	1,891		3,119
Proceeds from issuances of long-term debt	5,491		303
Repayments of long-term debt and other financing obligations	(2,651)		(1,050)
Cash dividends - common stock	(5,918)		(5,981)
Net contributions from (distributions to) noncontrolling interests	(30)		2
Net sales (purchases) of treasury shares	(6,432)		(5,821)
Net Cash Provided by (Used for) Financing Activities	(7,649)		(9,428)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	47		(95)
Net Change in Cash, Cash Equivalents and Restricted Cash	(2,887)		(4,310)
Cash, Cash Equivalents and Restricted Cash at January 1	8,262		9,275
Cash, Cash Equivalents and Restricted Cash at June 30	$	5,375	$	4,965

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 June 30	Stock(1)		Earnings		Income (Loss)		(at cost)		Equity		Interests		Equity
Balance at March 31, 2024	$	23,035	$	202,514	$	(2,965)	$	(61,959)	$	160,625	$	1,031	$	161,656
Treasury stock transactions	73		—		—		—		73		—		73

Net income (loss)	—		4,434		—		—		4,434		9		4,443
Cash dividends ($1.63 per share)	—		(2,978)		—		—		(2,978)		(4)		(2,982)
Stock dividends	—		(5)		—		—		(5)		—		(5)
Other comprehensive income	—		—		41		—		41		—		41
Purchases of treasury shares(2)	—		—		—		(3,030)		(3,030)		—		(3,030)
Issuances of treasury shares	(21)		—		—		99		78		—		78
Other changes, net	—		(5)		—		—		(5)		(6)		(11)
Balance at June 30, 2024	$	23,087	$	203,960	$	(2,924)	$	(64,890)	$	159,233	$	1,030	$	160,263

Balance at March 31, 2025	$	23,311	$	206,359	$	(2,709)	$	(77,717)	$	149,244	$	836	$	150,080
Treasury stock transactions	96		—		—		—		96		—		96

Net income (loss)	—		2,490		—		—		2,490		25		2,515
Cash dividends ($1.71 per share)	—		(2,934)		—		—		(2,934)		(20)		(2,954)
Stock dividends	—		(9)		—		—		(9)		—		(9)
Other comprehensive income	—		—		142		—		142		—		142
Purchases of treasury shares(2)	—		—		—		(2,770)		(2,770)		—		(2,770)
Issuances of treasury shares	(12)		—		—		171		159		—		159
Other changes, net	—		(1)		—		—		(1)		—		(1)
Balance at June 30, 2025	$	23,395	$	205,905	$	(2,567)	$	(80,316)	$	146,417	$	841	$	147,258

Six Months Ended June 30
Balance at December 31, 2023	$	22,957	$	200,025	$	(2,960)	$	(59,065)	$	160,957	$	972	$	161,929
Treasury stock transactions	165		—		—		—		165		—		165

Net income (loss)	—		9,935		—		—		9,935		59		9,994
Cash dividends ($3.26 per share)	—		(5,981)		—		—		(5,981)		(7)		(5,988)
Stock dividends	—		(11)		—		—		(11)		—		(11)
Other comprehensive income	—		—		36		—		36		—		36
Purchases of treasury shares	—		—		—		(6,036)		(6,036)		—		(6,036)
Issuances of treasury shares	(35)		—		—		211		176		—		176
Other changes, net	—		(8)		—		—		(8)		6		(2)
Balance at June 30, 2024	$	23,087	$	203,960	$	(2,924)	$	(64,890)	$	159,233	$	1,030	$	160,263

Balance at December 31, 2024	$	23,263	$	205,852	$	(2,760)	$	(74,037)	$	152,318	$	839	$	153,157
Treasury stock transactions	199		—		—		—		199		—		199

Net income (loss)	—		5,990		—		—		5,990		37		6,027
Cash dividends ($3.42 per share)	—		(5,918)		—		—		(5,918)		(35)		(5,953)
Stock dividends	—		(18)		—		—		(18)		—		(18)
Other comprehensive income	—		—		193		—		193		—		193
Purchases of treasury shares(2)	—		—		—		(6,722)		(6,722)		—		(6,722)
Issuances of treasury shares	(67)		—		—		443		376		—		376
Other changes, net	—		(1)		—		—		(1)		—		(1)
Balance at June 30, 2025	$	23,395	$	205,905	$	(2,567)	$	(80,316)	$	146,417	$	841	$	147,258

(Number of Shares)	Common Stock - 2025								Common Stock - 2024
Three Months Ended June 30	Issued(3)		Treasury		Outstanding				Issued(3)		Treasury		Outstanding
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
Purchases	—		(18,620,921)		(18,620,921)				—		(19,034,424)		(19,034,424)
Issuances	—		217,392		217,392				—		942,504		942,504
Balance at June 30	2,442,676,580		(714,686,204)		1,727,990,376				2,442,676,580		(613,759,467)		1,828,917,113

Six Months Ended June 30
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	—		(43,708,349)		(43,708,349)				—		(38,772,111)		(38,772,111)
Issuances	—		2,686,451		2,686,451				—		2,041,420		2,041,420
Balance at June 30	2,442,676,580		(714,686,204)		1,727,990,376				2,442,676,580		(613,759,467)		1,828,917,113

(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- and six-month periods ended June 30, 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 six months ended June 30, 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	(32)		(9)		(46)		12		(75)
Reclassifications(2) (3)	—		—		27		84		111
Net Other Comprehensive Income (Loss)	(32)		(9)		(19)		96		36
Balance at June 30, 2024	$	(224)	$	(20)	$	(14)	$	(2,666)	$	(2,924)

Balance at December 31, 2024	$	(259)	$	(19)	$	(14)	$	(2,468)	$	(2,760)
Components of Other Comprehensive Income (Loss):
Before Reclassifications	70		18		(21)		34		101
Reclassifications(2) (3)	—		—		40		52		92
Net Other Comprehensive Income (Loss)	70		18		19		86		193
Balance at June 30, 2025	$	(189)	$	(1)	$	5	$	(2,382)	$	(2,567)

(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 $72 that are included in employee benefit costs for the six months ended June 30, 2025. Related income taxes for the same period, totaling $20, 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


	Six Months Ended June 30
	2025		2024
	(Millions of dollars)
Distributions more (less) than income from equity affiliates included the following:
Distributions from equity affiliates	$	2,532	$	2,019
(Income) loss from equity affiliates	(1,356)		(2,647)
Distributions more (less) than income from equity affiliates	$	1,176	$	(628)
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable	$	3,089	$	(928)
Decrease (increase) in inventories	153		(1,865)
Decrease (increase) in prepaid expenses and other current assets	214		44
Increase (decrease) in accounts payable and accrued liabilities	(3,962)		419
Increase (decrease) in income and other taxes payable	(1,624)		(1,245)
Net decrease (increase) in operating working capital	$	(2,130)	$	(3,575)
Net cash provided by operating activities included the following cash payments:
Interest on debt (net of capitalized interest)	$	410	$	238
Income taxes	4,136		4,738
Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts:
Proceeds and deposits related to asset sales	$	932	$	103
Returns of investment from equity affiliates	58		115
Proceeds and deposits related to asset sales and returns of investment	$	990	$	218
Net maturities of (investments in) time deposits consisted of the following gross amounts:
Investments in time deposits	$	(9)	$	—
Maturities of time deposits	9		—
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	$	(216)	$	(154)
Repayment of loans by equity affiliates	40		36
Net repayment (borrowing) of loans by equity affiliates	$	(176)	$	(118)
Net borrowings (repayments) of short-term obligations consisted of the following gross and net amounts:
Proceeds from issuances of short-term debt obligations	$	6,779	$	—
Repayments of short-term debt obligations	(3,957)		—
Net borrowings (repayments) of short-term debt obligations with three months or less maturity	(931)		3,119
Net borrowings (repayments) of short-term obligations	$	1,891	$	3,119
Net contributions from (distributions to) noncontrolling interests consisted of the following gross amounts:
Distributions to noncontrolling interests	$	(34)	$	(7)
Contributions from noncontrolling interests	4		9
Net contributions from (distributions to) noncontrolling interests	$	(30)	$	2
Net sales (purchases) of treasury shares consisted of the following gross and net amounts:
Shares issued for share-based compensation plans	$	229	$	158
Shares purchased under share repurchase and executive compensation plans	(6,515)		(5,979)
Share Repurchase excise tax payment	(146)		—
Net sales (purchases) of treasury shares	$	(6,432)	$	(5,821)

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 second 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:


	Six Months Ended June 30
	2025		2024
	(Millions of dollars)
Additions to properties, plant and equipment	$	7,377	$	7,678
Additions to investments	101		265
Current-year dry hole expenditures	161		$	112

Capital expenditures	$	7,639	$	8,055

The table below quantifies the beginning and ending balances of restricted cash and restricted cash equivalents in the Consolidated Balance Sheet:


	At June 30				At December 31
	2025		2024		2024		2023
	(Millions of dollars)				(Millions of dollars)
Cash and cash equivalents	$	4,061	$	4,008	$	6,781	$	8,178
Restricted cash included in “Prepaid expenses and other current assets”	237		145		281		275
Restricted cash included in “Deferred charges and other assets”	1,077		812		1,200		822
Total cash, cash equivalents and restricted cash	$	5,375	$	4,965	$	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 Financial Accounting Standards Board (FASB) issued Accounting Standard Update (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 is evaluating 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.

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:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


	Six Months Ended June 30
	2025		2024
	(Millions of dollars)
Sales and other operating revenues	$	11,044	$	10,108
Costs and other deductions	9,257		5,392
Net income attributable to TCO	$	1,320	$	3,339

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:


	Six Months Ended June 30
	2025		2024
	(Millions of dollars)
Sales and other operating revenues	$	70,908	$	75,590
Costs and other deductions	67,891		72,170
Net income (loss) attributable to CUSA	$	2,553	$	3,057


	At June 30, 2025		At December 31, 2024
	(Millions of dollars)
Current assets	$	18,044	$	20,153
Other assets	59,609		58,485
Current liabilities	22,257		25,825
Other liabilities	27,030		21,455
Total CUSA net equity	$	28,366	$	31,358
Memo: Total debt	$	14,397	$	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 liquified natural gas (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.”

Segmented income statements for the three- and six-month periods ended June 30, 2025 and 2024 are presented in the following tables:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


	Upstream				Downstream				Segment Total		All Other		Total
Three months ended June 30, 2025	U.S.		Int’l.		U.S.		Int’l.
Sales and other operating revenues before elimination	$	10,385	$	9,182	$	18,708	$	18,274	$	56,549	$	149	$	56,698
Intersegment revenue elimination	(6,321)		(2,178)		(1,901)		(1,804)		(12,204)		(119)		(12,323)
Sales and Other Operating Revenues	4,064		7,004		16,807		16,470		44,345		30		44,375

Income (loss) from equity affiliates	(13)		438		55		55		535		1		536
Other income (loss)(1)	258		(145)		28		(23)		118		(207)		(89)
Total Revenues and Other Income	4,309		7,297		16,890		16,502		44,998		(176)		44,822

Intersegment product transfers(2)	5,415		782		(6,071)		(134)		(8)		8		—
Less expenses:
Purchased crude oil and products	3,284		2,173		7,787		13,614		26,858		—		26,858
Operating and SG&A expenses	2,082		1,300		2,137		1,506		7,025		621		7,646
Depreciation, depletion and amortization	2,142		1,824		243		75		4,284		60		4,344
Other costs and deductions(3)	362		363		178		619		1,522		305		1,827
Total Costs and Other Deductions	7,870		5,660		10,345		15,814		39,689		986		40,675

Income Tax Expense (Benefit)	431		1,107		70		204		1,812		(180)		1,632
Less: Net income (loss) attributable to non-controlling interests	5		3		—		17		25		—		25
Net Income (Loss) Attributable to Chevron Corporation	$	1,418	$	1,309	$	404	$	333	$	3,464	$	(974)	$	2,490
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $63 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $250 in “All Other.”


	Upstream				Downstream				Segment Total		All Other		Total
Three months ended June 30, 2024	U.S.		Int’l.		U.S.		Int’l.
Sales and other operating revenues before elimination	$	11,287	$	10,221	$	21,482	$	20,631	$	63,621	$	153	$	63,774
Intersegment revenue elimination	(7,890)		(3,072)		(2,586)		(532)		(14,080)		(120)		(14,200)
Sales and Other Operating Revenues	3,397		7,149		18,896		20,099		49,541		33		49,574

Income (loss) from equity affiliates	(15)		987		233		—		1,205		1		1,206
Other income (loss)(1)	10		199		98		(11)		296		105		401
Total Revenues and Other Income	3,392		8,335		19,227		20,088		51,042		139		51,181

Intersegment product transfers(2)	6,499		1,405		(7,154)		(822)		(72)		72		—
Less expenses:
Purchased crude oil and products	3,089		1,941		9,092		16,745		30,867		—		30,867
Operating and SG&A expenses	1,815		1,520		2,262		1,515		7,112		598		7,710
Depreciation, depletion and amortization	1,797		1,832		226		76		3,931		73		4,004
Other costs and deductions(3)	397		372		137		508		1,414		150		1,564
Total Costs and Other Deductions	7,098		5,665		11,717		18,844		43,324		821		44,145

Income Tax Expense (Benefit)	625		1,764		76		105		2,570		23		2,593
Less: Net income (loss) attributable to non-controlling interests	7		2		—		—		9		—		9
Net Income (Loss) Attributable to Chevron Corporation	$	2,161	$	2,309	$	280	$	317	$	5,067	$	(633)	$	4,434
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $66 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $103 in “All Other.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


	Upstream				Downstream				Segment Total		All Other		Total
Six Months Ended June 30, 2025	U.S.		Int'l.		U.S.		Int'l.
Sales and other operating revenues before elimination	$	21,900	$	19,153	$	37,413	$	35,540	$	114,006	$	269	$	114,275
Intersegment revenue elimination	(13,433)		(4,131)		(3,789)		(2,226)		(23,579)		(220)		(23,799)
Sales and Other Operating Revenues	8,467		15,022		33,624		33,314		90,427		49		90,476

Income (loss) from equity affiliates	(21)		1,152		205		27		1,363		(7)		1,356
Other income (loss)(1)	284		75		77		(16)		420		180		600
Total Revenues and Other Income	8,730		16,249		33,906		33,325		92,210		222		92,432

Intersegment product transfers(2)	11,876		1,151		(13,049)		(71)		(93)		93		—
Less expenses:
Purchased crude oil and products	7,193		4,975		15,049		28,251		55,468		—		55,468
Operating and SG&A expenses	4,205		2,557		4,392		2,770		13,924		1,362		15,286
Depreciation, depletion and amortization	4,165		3,521		485		149		8,320		147		8,467
Other costs and deductions(3)	748		620		349		1,181		2,898		583		3,481
Total Costs and Other Deductions	16,311		11,673		20,275		32,351		80,610		2,092		82,702

Income Tax Expense (Benefit)	1,009		2,513		75		326		3,923		(220)		3,703
Less: Net income (loss) attributable to non-controlling interests	10		5		—		22		37		—		37
Net Income (Loss) Attributable to Chevron Corporation	$	3,276	$	3,209	$	507	$	555	$	7,547	$	(1,557)	$	5,990
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $132 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $442 in “All Other.”


	Upstream				Downstream				Segment Total		All Other		Total
Six Months Ended June 30, 2024	U.S.		Int’l.		U.S.		Int’l.
Sales and other operating revenues before elimination	$	22,454	$	21,004	$	41,722	$	38,722	$	123,902	$	274	$	124,176
Intersegment revenue elimination	(15,479)		(5,997)		(5,293)		(1,039)		(27,808)		(214)		(28,022)
Sales and Other Operating Revenues	6,975		15,007		36,429		37,683		96,094		60		96,154

Income (loss) from equity affiliates	(35)		2,095		495		93		2,648		(1)		2,647
Other income (loss)(1)	73		537		188		12		810		286		1,096
Total Revenues and Other Income	7,013		17,639		37,112		37,788		99,552		345		99,897

Intersegment product transfers(2)	12,922		2,350		(13,845)		(1,475)		(48)		48		—
Less expenses:
Purchased crude oil and products	6,426		3,845		17,100		31,237		58,608		—		58,608
Operating and SG&A expenses	3,566		3,044		4,501		3,043		14,154		1,147		15,301
Depreciation, depletion and amortization	3,632		3,732		444		152		7,960		135		8,095
Other costs and deductions(3)	832		531		285		957		2,605		330		2,935
Total Costs and Other Deductions	14,456		11,152		22,330		35,389		83,327		1,612		84,939

Income Tax Expense (Benefit)	1,229		3,360		204		236		5,029		(65)		4,964
Less: Net income (loss) attributable to non-controlling interests	14		4		—		41		59		—		59
Net Income (Loss) Attributable to Chevron Corporation	$	4,236	$	5,473	$	733	$	647	$	11,089	$	(1,154)	$	9,935
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $151 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $212 in “All Other.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Segment Assets Segment assets do not include intercompany investments or intercompany receivables. Segment assets at June 30, 2025, and December 31, 2024, are as follows:


	At June 30, 2025		At December 31, 2024
Segment Assets	(Millions of dollars)
Upstream
United States	$	60,473	$	60,914
International	118,496		123,343
Goodwill	4,216		4,226
Total Upstream	183,185		188,483
Downstream
United States	34,298		34,253
International	21,541		22,165
Goodwill	352		352
Total Downstream	56,191		56,770
Total Segment Assets	239,376		245,253
All Other
United States	10,331		8,382
International	1,113		3,303
Total All Other	11,444		11,685
Total Assets — United States	105,102		103,549
Total Assets — International	141,150		148,811
Goodwill	4,568		4,578
Total Assets	$	250,820	$	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 June 30					Six Months Ended June 30
	2025		2024			2025		2024
	(Millions of dollars)				(Millions of dollars)
Pension Benefits
United States
Service cost	$	89	$	89		$	179	$	178
Interest cost	123		116			247		232
Expected return on plan assets	(173)		(149)			(347)		(298)
Amortization of prior service costs (credits)	1		1			2		2
Amortization of actuarial losses (gains)	30		61			60		122

Curtailment losses (gains)	71		—			71		—
Total United States	141		118			212		236
International
Service cost	15		13			29		27
Interest cost	48		48			96		95
Expected return on plan assets	(48)		(47)			(95)		(97)
Amortization of prior service costs (credits)	3		2			6		5
Amortization of actuarial losses (gains)	12		4			24		9


Total International	30		20			60		39
Net Periodic Pension Benefit Costs	$	171	$	138		$	272	$	275
Other Benefits*
Service cost	$	8	$	9		$	15	$	17
Interest cost	25		25			50		50
Amortization of prior service costs (credits)	(5)		(6)			(11)		(12)
Amortization of actuarial losses (gains)	(5)		(3)			(9)		(7)

Net Periodic Other Benefit Costs	$	23	$	25		$	45	$	48

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 June 30, 2025, a total of $444 million was contributed to employee pension plans (including $394 million to the U.S. plans). Contribution amounts are dependent upon plan investment returns, changes in pension obligations, regulatory requirements, and other economic factors. Additional funding may ultimately be required if investment returns are insufficient to offset increases in plan obligations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During the first six months of 2025, the company contributed $77 million to its OPEB plans.

Note 9. Assets Held For Sale

At June 30, 2025, the company classified $28 million of 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 six months of 2025 were not material.

Note 10. Income Taxes

The income tax expense decreased $1.0 billion between quarterly periods from $2.6 billion in 2024 to $1.6 billion in 2025. The company’s income before income tax expense decreased $2.9 billion from $7.0 billion in 2024 to $4.1 billion in 2025, primarily due to lower upstream realizations, lower equity affiliate earnings at TCO due to higher depreciation, depletion and amortization, and an unfavorable fair market valuation adjustment for Hess Corporation (Hess) common stock. The company’s effective tax rate increased between quarterly periods from 37 percent in 2024 to 39 percent in 2025. The change in effective tax rate was primarily due to 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 income tax expense decreased $1.3 billion between the six-month periods from $5.0 billion in 2024 to $3.7 billion in 2025. The company’s income before income tax decreased $5.2 billion from $15.0 billion in 2024 to $9.7 billion in 2025, primarily due to lower upstream realizations, lower equity affiliate earnings at TCO due to higher depreciation, depletion and amortization, unfavorable foreign exchange impacts and lower earnings due to asset sales. The company’s effective tax rate increased between six-month periods from 33 percent in 2024 to 38 percent in 2025. The change in effective tax rate was primarily due to 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.) (dismissed on the merits); City of Charleston v. Brabham Oil Co., et al., No. 2020-CP-10-3975 (S.C. Ct. of Com. Pl.) (dismissed on the merits and for lack of personal jurisdiction; appeal may be filed); 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’'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. Most of these cases have been remanded to Louisiana state court. In April 2025, a jury in a Louisiana state court awarded Plaquemines Parish $744.6 million in a trial against Chevron entities. However, the United States Supreme Court subsequently granted a petition for writ of certiorari in a related case and will determine if certain of these cases belong in federal, rather than state, court. A state court judge then continued a hearing on Plaquemines Parish’s motion for entry of judgment on the trial verdict and stayed that case pending a decision by the United States Supreme Court. 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. Total unconditional purchase obligations and commitments increased by approximately $5.0 billion in the second quarter, as the company finalized two 20-year U.S. Gulf Coast LNG take-or-pay export agreements that commence in 2028. The total balance at the end of second quarter 2025 is $21.4 billion, up from $16.0 billion at year-end 2024.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 second quarter 2025 is $2.3 billion.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The fair value hierarchy for assets and liabilities measured at fair value at June 30, 2025, and December 31, 2024, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis


	At June 30, 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	$	194	$	172	$	22	$	—	$	137	$	127	$	10	$	—
Derivatives - designated	6		6		—		—		—		—		—		—
Total Assets at Fair Value	$	200	$	178	$	22	$	—	$	137	$	127	$	10	$	—
Derivatives - not designated	257		180		77		—		136		47		89		—
Derivatives - designated	—		—		—		—		17		17		—		—
Total Liabilities at Fair Value	$	257	$	180	$	77	$	—	$	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 June 30, 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 $4.1 billion and $6.8 billion at June 30, 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 June 30, 2025.

Restricted Cash had a carrying/fair value of $1.3 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively. At June 30, 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 Common Stock are classified as Level 1, had a fair value of $2.1 billion at June 30, 2025, and are reflected in the “Investments and advances” line on the Consolidated Balance Sheet. During second quarter 2025 and for the six months ended June 30, 2025, the company recognized a fair value loss of $327 million and $95 million, respectively, in “Other income (loss)” on the Consolidated Statement of Income. The fair value of the Hess stock was $2.3 billion at the close of market on July 17, 2025, the day before Chevron completed the acquisition of Hess, and the company will recognize a gain of $160 million on the investment in the third quarter. In the aggregate, the company will recognize a gain of $65 million on this investment in 2025.

Long-Term Debt excluding amounts reclassified from short-term debt and finance lease obligations had a net carrying value of $14.0 billion and $10.8 billion at June 30, 2025, and December 31, 2024, respectively. Long-term debt primarily includes corporate issued bonds. The fair value of these obligations was $13.3 billion and $9.8 billion at June 30, 2025, and December 31, 2024, respectively. At June 30, 2025, the fair value of these obligations classified as Level 1 is $12.8 billion and Level 2 is $495 million.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 June 30, 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 second 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 second 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 June 30, 2025, and December 31, 2024, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:


Consolidated Balance Sheet: Fair Value of Derivatives
Type of		At June 30, 2025		At December 31, 2024
Contract	Balance Sheet Classification	(Millions of dollars)
Commodity	Accounts and notes receivable, net	$	151	$	122
Commodity	Long-term receivables, net	49		15
Total Assets at Fair Value		$	200	$	137
Commodity	Accounts payable	$	242	$	127
Commodity	Deferred credits and other noncurrent obligations	15		26
Total Liabilities at Fair Value		$	257	$	153


Consolidated Statement of Income: The Effect of Derivatives
		Gain / (Loss) Three Months Ended June 30				Gain / (Loss) Six Months Ended June 30
Type of		2025		2024		2025		2024
Contract	Statement of Income Classification	(Millions of dollars)
Commodity	Sales and other operating revenues	$	86	$	(82)	$	(58)	$	(240)
Commodity	Purchased crude oil and products	(19)		25		(63)		(39)
Commodity	Other income (loss)	(1)		8		(7)		21
Total		$	66	$	(49)	$	(128)	$	(258)

The amount reclassified from AOCL to “Sales and other operating revenues” from designated hedges for the first six months of 2025 was a loss of $40 million compared with a loss of $27 million in the same period of the prior year. At June 30, 2025, before-tax deferred gains in AOCL related to outstanding crude oil price hedging contracts were $6 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table represents gross and net derivative assets and liabilities subject to netting agreements on the Consolidated Balance Sheet at June 30, 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 June 30, 2025	(Millions of dollars)
Derivative Assets - not designated	$	3,650	$	3,456	$	194	$	13	$	181
Derivative Assets - designated	$	18	$	12	$	6	$	—	$	6
Derivative Liabilities - not designated	$	3,713	$	3,456	$	257	$	16	$	241
Derivative Liabilities - designated	$	12	$	12	$	—	$	—	$	—
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.”

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 $11.8 billion and $14.2 billion at June 30, 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 $405 million and $611 million at June 30, 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 $15.7 billion at June 30, 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 $3.3 billion at June 30, 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

Note 18. Acquisition of Hess Corporation

On July 18, 2025, the company completed the acquisition of Hess Corporation (Hess), an independent oil and gas exploration and production company. Hess’s principal upstream operations are in the United States, Guyana and Malaysia. Hess’s operations also include an ownership interest in Hess Midstream LP, with operations primarily in the Bakken shale in the Williston Basin area of North Dakota.

The aggregate purchase price of Hess was approximately $48 billion, including 15.38 million shares of Hess common stock purchased in open market transactions in the first quarter of 2025 and 301.25 million shares of Chevron common stock issued as closing consideration in July. As part of the transaction, the company assumed debt with an aggregate outstanding principal value of $8.8 billion. The shares issued represented approximately 15 percent of the shares of Chevron common stock outstanding immediately after the transaction closed on July 18, 2025.

The acquisition will be accounted for as a business combination under ASC 805, which requires assets acquired and liabilities assumed to be measured at their acquisition date fair value. Provisional fair value measurement will be made in the third quarter 2025 for acquired assets and assumed liabilities, and adjustments to those measurements may be made in subsequent periods, up to one year from the acquisition date as information necessary to complete the analysis is obtained.

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	7
Payments	(64)
Balance at June 30, 2025	$	933

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