Item 1. Consolidated Financial Statements

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

			Three Months Ended September 30												Nine Months Ended September 30
			2025						2024						2025						2024
			(Millions of dollars, except per-share amounts)
Revenues and Other Income
Sales and other operating revenues			$	48,169					$	48,926					$	138,645					$	145,080
Income (loss) from equity affiliates			981						1,261						2,337						3,908
Other income (loss)			576						482						1,176						1,578
Total Revenues and Other Income			49,726						50,669						142,158						150,566
Costs and Other Deductions
Purchased crude oil and products			27,398						30,450						82,866						89,058
Operating expenses			7,534						6,695						20,616						19,842
Selling, general and administrative expenses			1,524						1,191						3,634						3,249
Exploration expenses			288						154						727						546
Depreciation, depletion and amortization			5,781						4,214						14,248						12,309
Taxes other than on income			1,347						1,263						3,903						3,575
Interest and debt expense			370						164						856						395
Other components of net periodic benefit costs			70						49						164						145
Total Costs and Other Deductions			44,312						44,180						127,014						129,119
Income (Loss) Before Income Tax Expense			5,414						6,489						15,144						21,447
Income Tax Expense (Benefit)			1,801						1,993						5,504						6,957
Net Income (Loss)			3,613						4,496						9,640						14,490
Less: Net income (loss) attributable to noncontrolling interests			74						9						111						68
Net Income (Loss) Attributable to Chevron Corporation			$	3,539					$	4,487					$	9,529					$	14,422
Per Share of Common Stock
Net Income (Loss) Attributable to Chevron Corporation
- Basic			$	1.83					$	2.49					$	5.29					$	7.91
- Diluted			$	1.82					$	2.48					$	5.27					$	7.88
Weighted Average Number of Shares Outstanding (000s)
- Basic			1,938,922						1,800,336						1,801,623						1,822,770
- Diluted			1,946,035						1,807,030						1,808,004						1,829,776

See accompanying notes to consolidated financial statements.

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

			Three Months Ended September 30												Nine Months Ended September 30
			2025						2024						2025						2024
			(Millions of dollars)
Net Income (Loss)			$	3,613					$	4,496					$	9,640					$	14,490
Currency translation adjustment			(9)						23						61						(9)
Unrealized holding gain (loss) on securities
Net gain (loss) arising during period			(2)						4						16						(5)
Derivatives
Net derivatives gain (loss) on hedge transactions			7						18						(10)						(33)
Reclassification to net income			(6)						16						34						43
Income taxes on derivatives transactions			(1)						(8)						(5)						(3)
Total			—						26						19						7
Defined benefit plans
Actuarial gain (loss)
Amortization to net income of net actuarial loss and settlements			43						61						118						185
Actuarial gain (loss) arising during period			(80)						1						(46)						1
Prior service credits (cost)
Amortization to net income of net prior service costs and curtailments			(4)						(3)						(7)						(8)
Prior service (costs) credits arising during period			24						—						24						—
Defined benefit plans sponsored by equity affiliates - benefit (cost)			3						1						12						3
Income (taxes) benefit on defined benefit plans			1						(14)						(28)						(39)
Total			(13)						46						73						142
Other Comprehensive Gain (Loss), Net of Tax			(24)						99						169						135
Comprehensive Income (Loss)			3,589						4,595						9,809						14,625
Comprehensive loss (income) attributable to noncontrolling interests			(74)						(9)						(111)						(68)
Comprehensive Income (Loss) Attributable to Chevron Corporation			$	3,515					$	4,586					$	9,698					$	14,557

See accompanying notes to consolidated financial statements.

CHEVRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Unaudited)

						At September 30, 2025						At December 31, 2024
						(Millions of dollars)
Assets
Cash and cash equivalents						$	7,725					$	6,781
Time deposits						2						4
Accounts and notes receivable (less allowance: 2025 - $191; 2024 - $259)						17,887						20,684
Inventories:
Crude oil and products						7,416						6,490
Chemicals						509						502
Materials, supplies and other						2,511						2,082
Total inventories						10,436						9,074
Prepaid expenses and other current assets						4,816						4,368
Total Current Assets						40,866						40,911
Long-term receivables (less allowance: 2025 - $216; 2024 - $352)						987						877
Investments and advances						44,398						47,438
Properties, plant and equipment, at cost						429,269						345,933
Less: Accumulated depreciation, depletion and amortization						209,775						198,134
Properties, plant and equipment, net						219,494						147,799
Deferred charges and other assets						16,162						14,854
Goodwill						4,568						4,578
Assets held for sale						26						481
Total Assets						$	326,501					$	256,938
Liabilities and Equity
Short-term debt						$	3,591					$	4,406
Accounts payable						19,073						22,079
Accrued liabilities						10,541						8,486
Federal and other taxes on income						914						1,872
Other taxes payable						1,353						1,715
Total Current Liabilities						35,472						38,558
Long-term debt						37,953						20,135
Deferred credits and other noncurrent obligations						23,592						22,094
Noncurrent deferred income taxes						29,796						19,137
Noncurrent employee benefit plans						4,088						3,857
Total Liabilities*****						$	130,901					$	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 September 30, 2025 and December 31, 2024)						1,832						1,832
Capital in excess of par value						33,812						21,671
Retained earnings						206,006						205,852
Accumulated other comprehensive losses						(2,591)						(2,760)
Deferred compensation and benefit plan trust						(240)						(240)
Treasury stock, at cost (429,154,983 and 673,664,306 shares at September 30, 2025 and December 31, 2024, respectively)						(48,976)						(74,037)
Total Chevron Corporation Stockholders’ Equity						189,843						152,318
Noncontrolling interests						5,757						839
Total Equity						195,600						153,157
Total Liabilities and Equity						$	326,501					$	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)

			Nine Months Ended September 30
			2025						2024
			(Millions of dollars)
Operating Activities
Net Income (Loss)			$	9,640					$	14,490
Adjustments
Depreciation, depletion and amortization			14,248						12,309
Dry hole expense			245						225
Distributions more (less) than income from equity affiliates			1,802						(485)
Net before-tax losses (gains) on asset retirements and sales			(302)						(236)
Net foreign currency effects			444						104
Deferred income tax provision			709						1,545
Net decrease (increase) in operating working capital			(2,685)						(2,172)
Decrease (increase) in long-term receivables			(85)						54
Net decrease (increase) in other deferred charges			(380)						(765)
Cash contributions to employee pension plans			(538)						(658)
Other			52						(1,614)
Net Cash Provided by Operating Activities			23,150						22,797
Investing Activities
Acquisition of businesses, net of cash received			1,056						—
Acquisition of Hess Corporation common stock			(2,225)						—
Capital expenditures			(12,083)						(12,110)
Proceeds and deposits related to asset sales and returns of investment			1,473						620
Net maturities of (investments in) time deposits			2						(4)
Net sales (purchases) of marketable securities			—						45
Net repayment (borrowing) of loans by equity affiliates			798						(157)
Net Cash Used for Investing Activities			(10,979)						(11,606)
Financing Activities
Net borrowings (repayments) of short-term obligations			(819)						5,615
Proceeds from issuances of long-term debt			11,166						403
Repayments of long-term debt and other financing obligations			(3,557)						(1,062)
Cash dividends - common stock			(9,347)						(8,914)
Net contributions from (distributions to) noncontrolling interests			(220)						(197)
Net sales (purchases) of treasury shares			(8,914)						(10,535)
Net Cash Provided by (Used for) Financing Activities			(11,691)						(14,690)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash			41						(12)
Net Change in Cash, Cash Equivalents and Restricted Cash			521						(3,511)
Cash, Cash Equivalents and Restricted Cash at January 1			8,262						9,275
Cash, Cash Equivalents and Restricted Cash at September 30			$	8,783					$	5,764

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 September 30			Stock**(1)**			Earnings			Income (Loss)			(at cost)			Equity			Interests			Equity
Balance at June 30, 2024			$	23,087		$	203,960		$	(2,924)		$	(64,890)		$	159,233		$	1,030		$	160,263
Treasury stock transactions			86			—			—			—			86			—			86
Net income (loss)			—			4,487			—			—			4,487			9			4,496
Cash dividends ($1.63 per share)			—			(2,933)			—			—			(2,933)			(203)			(3,136)
Stock dividends			—			(6)			—			—			(6)			—			(6)
Other comprehensive income			—			—			99			—			99			—			99
Purchases of treasury shares(2)			—			—			—			(4,797)			(4,797)			—			(4,797)
Issuances of treasury shares			(3)			—			—			41			38			—			38
Other changes, net			—			(5)			—			—			(5)			(8)			(13)
Balance at September 30, 2024			$	23,170		$	205,503		$	(2,825)		$	(69,646)		$	156,202		$	828		$	157,030
Balance at June 30, 2025			$	23,395		$	205,905		$	(2,567)		$	(80,316)		$	146,417		$	841		$	147,258
Treasury stock transactions			251			—			—			—			251			—			251
Hess Corporation acquisition			11,775			—			—			33,828			45,603			5,035			50,638
Net income (loss)			—			3,539			—			—			3,539			74			3,613
Cash dividends ($1.71 per share)			—			(3,429)			—			—			(3,429)			(193)			(3,622)
Stock dividends			—			(9)			—			—			(9)			—			(9)
Other comprehensive income			—			—			(24)			—			(24)			—			(24)
Purchases of treasury shares(2)			—			—			—			(2,590)			(2,590)			—			(2,590)
Issuances of treasury shares			(17)			—			—			102			85			—			85
Other changes, net			—			—			—			—			—			—			—
Balance at September 30, 2025			$	35,404		$	206,006		$	(2,591)		$	(48,976)		$	189,843		$	5,757		$	195,600
Nine Months Ended September 30
Balance at December 31, 2023			$	22,957		$	200,025		$	(2,960)		$	(59,065)		$	160,957		$	972		$	161,929
Treasury stock transactions			251			—			—			—			251			—			251
Net income (loss)			—			14,422			—			—			14,422			68			14,490
Cash dividends ($4.89 per share)			—			(8,914)			—			—			(8,914)			(210)			(9,124)
Stock dividends			—			(17)			—			—			(17)			—			(17)
Other comprehensive income			—			—			135			—			135			—			135
Purchases of treasury shares			—			—			—			(10,833)			(10,833)			—			(10,833)
Issuances of treasury shares			(38)			—			—			252			214			—			214
Other changes, net			—			(13)			—			—			(13)			(2)			(15)
Balance at September 30, 2024			$	23,170		$	205,503		$	(2,825)		$	(69,646)		$	156,202		$	828		$	157,030
Balance at December 31, 2024			$	23,263		$	205,852		$	(2,760)		$	(74,037)		$	152,318		$	839		$	153,157
Treasury stock transactions			450			—			—			—			450			—			450
Hess Corporation acquisition			11,775			—			—			33,828			45,603			5,035			50,638
Net income (loss)			—			9,529			—			—			9,529			111			9,640
Cash dividends ($5.13 per share)			—			(9,347)			—			—			(9,347)			(228)			(9,575)
Stock dividends			—			(27)			—			—			(27)			—			(27)
Other comprehensive income			—			—			169			—			169			—			169
Purchases of treasury shares(2)			—			—			—			(9,312)			(9,312)			—			(9,312)
Issuances of treasury shares			(84)			—			—			545			461			—			461
Other changes, net			—			(1)			—			—			(1)			—			(1)
Balance at September 30, 2025			$	35,404		$	206,006		$	(2,591)		$	(48,976)		$	189,843		$	5,757		$	195,600
(Number of Shares)			Common Stock - 2025												Common Stock - 2024
Three Months Ended September 30			Issued**(3)**			Treasury			Outstanding						Issued**(3)**			Treasury			Outstanding
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
Purchases			—			(16,623,281)			(16,623,281)						—			(32,209,398)			(32,209,398)
Issuances			—			302,154,502			302,154,502						—			383,610			383,610
Balance at September 30			2,442,676,580			(429,154,983)			2,013,521,597						2,442,676,580			(645,585,255)			1,797,091,325
Nine Months Ended September 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			—			(60,331,630)			(60,331,630)						—			(70,981,509)			(70,981,509)
Issuances			—			304,840,953			304,840,953						—			2,425,030			2,425,030
Balance at September 30			2,442,676,580			(429,154,983)			2,013,521,597						2,442,676,580			(645,585,255)			1,797,091,325

(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 nine-month periods ended September 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 nine months ended September 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						(9)						(5)						(36)						13						(37)
Reclassifications(2) (3)						—						—						43						129						172
Net Other Comprehensive Income (Loss)						(9)						(5)						7						142						135
Balance at September 30, 2024						$	(201)					$	(16)					$	12					$	(2,620)					$	(2,825)
Balance at December 31, 2024						$	(259)					$	(19)					$	(14)					$	(2,468)					$	(2,760)
Components of Other Comprehensive Income (Loss):
Before Reclassifications						61						16						(15)						(10)						52
Reclassifications(2) (3)						—						—						34						83						117
Net Other Comprehensive Income (Loss)						61						16						19						73						169
Balance at September 30, 2025						$	(198)					$	(3)					$	5					$	(2,395)					$	(2,591)

(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 special events, including settlements, totaling $111 that are included in employee benefit costs for the nine months ended September 30, 2025. Related income taxes for the same period, totaling $28, 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

			Nine Months Ended September 30
			2025						2024
			(Millions of dollars)
Distributions more (less) than income from equity affiliates included the following:
Distributions from equity affiliates			$	4,139					$	3,423
(Income) loss from equity affiliates			(2,337)						(3,908)
Distributions more (less) than income from equity affiliates			$	1,802					$	(485)
Net decrease (increase) in operating working capital was composed of the following:
Decrease (increase) in accounts and notes receivable			$	4,018					$	286
Decrease (increase) in inventories			(767)						(1,113)
Decrease (increase) in prepaid expenses and other current assets			(375)						96
Increase (decrease) in accounts payable and accrued liabilities			(4,193)						(121)
Increase (decrease) in income and other taxes payable			(1,368)						(1,320)
Net decrease (increase) in operating working capital			$	(2,685)					$	(2,172)
Net cash provided by operating activities included the following cash payments:
Interest on debt (net of capitalized interest)			$	573					$	326
Income taxes			5,524						6,586
Proceeds and deposits related to asset sales and returns of investment consisted of the following gross amounts:
Proceeds and deposits related to asset sales			$	1,380					$	497
Returns of investment from equity affiliates			93						123
Proceeds and deposits related to asset sales and returns of investment			$	1,473					$	620
Net maturities of (investments in) time deposits consisted of the following gross amounts:
Investments in time deposits			$	(12)					$	(4)
Maturities of time deposits			14						—
Net maturities of (investments in) time deposits			$	2					$	(4)
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			$	(263)					$	(211)
Repayment of loans by equity affiliates			1,061						54
Net repayment (borrowing) of loans by equity affiliates			$	798					$	(157)
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					$	829
Repayments of short-term debt obligations			(5,944)						—
Net borrowings (repayments) of short-term debt obligations with three months or less maturity			(1,654)						4,786
Net borrowings (repayments) of short-term obligations			$	(819)					$	5,615
Net contributions from (distributions to) noncontrolling interests consisted of the following gross amounts:
Distributions to noncontrolling interests			$	(228)					$	(210)
Contributions from noncontrolling interests			8						13
Net contributions from (distributions to) noncontrolling interests			$	(220)					$	(197)
Net sales (purchases) of treasury shares consisted of the following gross and net amounts:
Shares issued for share-based compensation plans			$	313					$	194
Shares purchased under share repurchase and executive compensation plans			(9,081)						(10,729)
Share repurchase excise tax payment			(146)						—
Net sales (purchases) of treasury shares			$	(8,914)					$	(10,535)

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 third 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:

			Nine Months Ended September 30
			2025						2024
			(Millions of dollars)
Additions to properties, plant and equipment			$	11,715					$	11,590
Additions to investments			150						392
Current-year dry hole expenditures			218						$	128
Capital expenditures			$	12,083					$	12,110

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

			At September 30												At December 31
			2025						2024						2024						2023
			(Millions of dollars)												(Millions of dollars)
Cash and cash equivalents			$	7,725					$	4,699					$	6,781					$	8,178
Restricted cash included in “Prepaid expenses and other current assets”			247						240						281						275
Restricted cash included in “Deferred charges and other assets”			811						825						1,200						822
Total cash, cash equivalents and restricted cash			$	8,783					$	5,764					$	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.

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:

			Nine Months Ended September 30
			2025						2024
			(Millions of dollars)
Sales and other operating revenues			$	17,101					$	14,857
Costs and other deductions			14,101						8,200
Net income attributable to TCO			$	2,209					$	4,727

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:

			Nine Months Ended September 30
			2025						2024
			(Millions of dollars)
Sales and other operating revenues			$	107,295					$	112,708
Costs and other deductions			102,605						107,834
Net income (loss) attributable to CUSA			$	4,148					$	4,491

			At September 30, 2025						At December 31, 2024
			(Millions of dollars)
Current assets			$	20,670					$	20,153
Other assets			58,926						58,485
Current liabilities			19,380						25,825
Other liabilities			31,616						21,455
Total CUSA net equity			$	28,600					$	31,358
Memo: Total debt			$	19,230					$	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).

The acquisition of Hess Corporation (Hess) and the company’s new organizational structure did not result in any change to the company’s reportable or operating segments. Hess results have been fully incorporated into the upstream segment.

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 nine-month periods ended September 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 September 30, 2025			U.S.			Int’l.			U.S.			Int’l.
Sales and other operating revenues before elimination			$	12,161		$	12,118		$	18,234		$	17,483		$	59,996		$	136		$	60,132
Intersegment revenue elimination			(6,538)			(2,576)			(1,647)			(1,090)			(11,851)			(112)			(11,963)
Sales and Other Operating Revenues			5,623			9,542			16,587			16,393			48,145			24			48,169
Income (loss) from equity affiliates			(8)			707			212			71			982			(1)			981
Other income (loss)(1)			145			110			39			19			313			263			576
Total Revenues and Other Income			5,760			10,359			16,838			16,483			49,440			286			49,726
Intersegment product transfers(2)			6,179			1,008			(6,687)			(278)			222			(222)			—
Less expenses:
Purchased crude oil and products			3,768			3,437			6,794			13,399			27,398			—			27,398
Operating and SG&A expenses			3,276			1,580			2,148			1,489			8,493			635			9,128
Depreciation, depletion and amortization			2,782			2,583			280			74			5,719			62			5,781
Other costs and deductions(3)			466			356			169			624			1,615			390			2,005
Total Costs and Other Deductions			10,292			7,956			9,391			15,586			43,225			1,087			44,312
Income Tax Expense (Benefit)			310			1,389			122			103			1,924			(123)			1,801
Less: Net income (loss) attributable to non-controlling interests			55			2			—			17			74			—			74
Net Income (Loss) Attributable to Chevron Corporation			$	1,282		$	2,020		$	638		$	499		$	4,439		$	(900)		$	3,539
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $61 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $329 in “All Other.”

			Upstream						Downstream						Segment Total			All Other			Total
Three months ended September 30, 2024			U.S.			Int’l.			U.S.			Int’l.
Sales and other operating revenues before elimination			$	10,730		$	11,330		$	20,167		$	19,488		$	61,715		$	139		$	61,854
Intersegment revenue elimination			(7,432)			(2,745)			(2,432)			(207)			(12,816)			(112)			(12,928)
Sales and Other Operating Revenues			3,298			8,585			17,735			19,281			48,899			27			48,926
Income (loss) from equity affiliates			(12)			903			368			2			1,261			—			1,261
Other income (loss)(1)			86			183			82			10			361			121			482
Total Revenues and Other Income			3,372			9,671			18,185			19,293			50,521			148			50,669
Intersegment product transfers(2)			6,292			1,043			(6,477)			(930)			(72)			72			—
Less expenses:
Purchased crude oil and products			3,066			2,903			8,892			15,589			30,450			—			30,450
Operating and SG&A expenses			1,837			1,524			2,315			1,536			7,212			723			7,935
Depreciation, depletion and amortization			1,815			2,025			229			90			4,159			55			4,214
Other costs and deductions(3)			433			245			138			574			1,390			191			1,581
Total Costs and Other Deductions			7,151			6,697			11,574			17,789			43,211			969			44,180
Income Tax Expense (Benefit)			561			1,373			(12)			123			2,045			(52)			1,993
Less: Net income (loss) attributable to non-controlling interests			6			1			—			2			9			—			9
Net Income (Loss) Attributable to Chevron Corporation			$	1,946		$	2,643		$	146		$	449		$	5,184		$	(697)		$	4,487
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $64 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $146 in “All Other.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

			Upstream						Downstream						Segment Total			All Other			Total
Nine Months Ended September 30, 2025			U.S.			Int'l.			U.S.			Int'l.
Sales and other operating revenues before elimination			$	34,061		$	31,271		$	55,647		$	53,023		$	174,002		$	405		$	174,407
Intersegment revenue elimination			(19,971)			(6,707)			(5,436)			(3,316)			(35,430)			(332)			(35,762)
Sales and Other Operating Revenues			14,090			24,564			50,211			49,707			138,572			73			138,645
Income (loss) from equity affiliates			(29)			1,859			417			98			2,345			(8)			2,337
Other income (loss)(1)			429			185			116			3			733			443			1,176
Total Revenues and Other Income			14,490			26,608			50,744			49,808			141,650			508			142,158
Intersegment product transfers(2)			18,055			2,159			(19,736)			(349)			129			(129)			—
Less expenses:
Purchased crude oil and products			10,961			8,412			21,843			41,650			82,866			—			82,866
Operating and SG&A expenses			7,481			4,137			6,540			4,259			22,417			1,997			24,414
Depreciation, depletion and amortization			6,947			6,104			765			223			14,039			209			14,248
Other costs and deductions(3)			1,214			976			518			1,805			4,513			973			5,486
Total Costs and Other Deductions			26,603			19,629			29,666			47,937			123,835			3,179			127,014
Income Tax Expense (Benefit)			1,319			3,902			197			429			5,847			(343)			5,504
Less: Net income (loss) attributable to non-controlling interests			65			7			—			39			111			—			111
Net Income (Loss) Attributable to Chevron Corporation			$	4,558		$	5,229		$	1,145		$	1,054		$	11,986		$	(2,457)		$	9,529
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $193 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $771 in “All Other.”

			Upstream						Downstream						Segment Total			All Other			Total
Nine Months Ended September 30, 2024			U.S.			Int’l.			U.S.			Int’l.
Sales and other operating revenues before elimination			$	33,184		$	32,334		$	61,889		$	58,210		$	185,617		$	413		$	186,030
Intersegment revenue elimination			(22,911)			(8,742)			(7,725)			(1,246)			(40,624)			(326)			(40,950)
Sales and Other Operating Revenues			10,273			23,592			54,164			56,964			144,993			87			145,080
Income (loss) from equity affiliates			(47)			2,998			863			95			3,909			(1)			3,908
Other income (loss)(1)			159			720			270			22			1,171			407			1,578
Total Revenues and Other Income			10,385			27,310			55,297			57,081			150,073			493			150,566
Intersegment product transfers(2)			19,214			3,393			(20,322)			(2,405)			(120)			120			—
Less expenses:
Purchased crude oil and products			9,492			6,748			25,992			46,826			89,058			—			89,058
Operating and SG&A expenses			5,403			4,568			6,816			4,579			21,366			1,870			23,236
Depreciation, depletion and amortization			5,447			5,757			673			242			12,119			190			12,309
Other costs and deductions(3)			1,265			776			423			1,531			3,995			521			4,516
Total Costs and Other Deductions			21,607			17,849			33,904			53,178			126,538			2,581			129,119
Income Tax Expense (Benefit)			1,790			4,733			192			359			7,074			(117)			6,957
Less: Net income (loss) attributable to non-controlling interests			20			5			—			43			68			—			68
Net Income (Loss) Attributable to Chevron Corporation			$	6,182		$	8,116		$	879		$	1,096		$	16,273		$	(1,851)		$	14,422
Values have been adjusted for eliminations, unless otherwise specified.
(1) Includes interest income of $215 in “All Other.”
(2) Valuation of product transfers between operating segments.
(3) Includes interest expense of $358 in “All Other.”

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

			At September 30, 2025						At December 31, 2024
Segment Assets			(Millions of dollars)
Upstream
United States			$	88,074					$	60,914
International			168,746						123,343
Goodwill			4,216						4,226
Total Upstream			261,036						188,483
Downstream
United States			34,224						34,253
International			21,346						22,165
Goodwill			352						352
Total Downstream			55,922						56,770
Total Segment Assets			316,958						245,253
All Other
United States			8,138						8,382
International			1,405						3,303
Total All Other			9,543						11,685
Total Assets — United States			130,436						103,549
Total Assets — International			191,497						148,811
Goodwill			4,568						4,578
Total Assets			$	326,501					$	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. Hess’s employee benefit plans have been incorporated into this note post-acquisition.

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 September 30												Nine Months Ended September 30
			2025						2024						2025						2024
			(Millions of dollars)									(Millions of dollars)
Pension Benefits
United States
Service cost			$	92					$	90					$	271					$	268
Interest cost			132						116						379						348
Expected return on plan assets			(197)						(149)						(544)						(447)
Amortization of prior service costs (credits)			1						1						3						3
Amortization of actuarial losses (gains)			38						60						98						182
Curtailment losses (gains)(1)			56						—						127						—
Total United States			122						118						334						354
International
Service cost			13						14						42						41
Interest cost			55						48						151						143
Expected return on plan assets			(53)						(51)						(148)						(148)
Amortization of prior service costs (credits)			2						3						8						8
Amortization of actuarial losses (gains)			9						5						33						14
Total International			26						19						86						58
Net Periodic Pension Benefit Costs			$	148					$	137					$	420					$	412
Other Benefits**(2)**
Service cost			$	7					$	8					$	22					$	25
Interest cost			25						24						75						74
Amortization of prior service costs (credits)			(6)						(7)						(17)						(19)
Amortization of actuarial losses (gains)			(4)						(4)						(13)						(11)
Curtailment losses (gains)			(1)						—						(1)						—
Net Periodic Other Benefit Costs			$	21					$	21					$	66					$	69

(1) Includes special termination benefits of $26 associated with Hess pension plans.

(2) 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 September 30, 2025, a total of $538 million was contributed to employee pension plans (including $453 million to the U.S. plans). Contribution amounts are dependent upon plan investment returns, changes in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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.

During the first nine months of 2025, the company contributed $112 million to its OPEB plans.

Note 9. Assets Held For Sale

At September 30, 2025, the company classified $26 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 nine months of 2025 were not material.

Note 10. Income Taxes

The income tax expense decreased $192 million between quarterly periods from $2.0 billion in 2024 to $1.8 billion in 2025. The company’s income before income tax expense decreased $1.1 billion from $6.5 billion in 2024 to $5.4 billion in 2025, primarily due to lower upstream realizations, lower affiliate earnings and higher interest costs, partially offset by higher downstream margins and the impacts from higher upstream sales volumes. The company’s effective tax rate increased between quarterly periods from 31 percent in 2024 to 33 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 $1.5 billion between the nine-month periods from $7.0 billion in 2024 to $5.5 billion in 2025. The company’s income before income tax decreased $6.3 billion from $21.4 billion in 2024 to $15.1 billion in 2025, primarily due to lower upstream realizations and lower affiliate earnings, partially offset by the impacts from higher upstream sales volumes and higher downstream margins. The company’s effective tax rate increased between nine-month periods from 32 percent in 2024 to 36 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, six 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.) (dismissed on the merits; Plaintiff’s appeal pending); 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; Plaintiff’s appeal pending); 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); 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); 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.) (dismissed on the merits; Plaintiff’s appeal pending); 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. 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.

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 third quarter 2025 is $2.2 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 September 30, 2025, and December 31, 2024, is as follows:

Assets and Liabilities Measured at Fair Value on a Recurring Basis

			At September 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			$	178					$	136					$	42					$	—					$	137					$	127					$	10					$	—
Derivatives - designated			7						7						—						—						—						—						—						—
Total Assets at Fair Value			$	185					$	143					$	42					$	—					$	137					$	127					$	10					$	—
Derivatives - not designated			158						127						31						—						136						47						89						—
Derivatives - designated			—						—						—						—						17						17						—						—
Total Liabilities at Fair Value			$	158					$	127					$	31					$	—					$	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 September 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 $7.7 billion and $6.8 billion at

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

September 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 September 30, 2025.

Restricted Cash had a carrying/fair value of $1.1 billion and $1.5 billion at September 30, 2025, and December 31, 2024, respectively. At September 30, 2025, restricted cash is classified as Level 1 and includes primarily restricted funds related to certain upstream decommissioning activities and financing programs that are reported in “Prepaid expenses and other current assets” and “Deferred charges and other assets” on the Consolidated Balance Sheet.

Long-Term Debt excluding amounts reclassified from short-term debt and finance lease obligations had a net carrying value of $28.6 billion and $10.8 billion at September 30, 2025, and December 31, 2024, respectively. Long-term debt primarily includes corporate-issued bonds. The fair value of these obligations was $28.6 billion and $9.8 billion at September 30, 2025, and December 31, 2024, respectively. At September 30, 2025, the fair value of these obligations classified as Level 1 was $24.3 billion and Level 2 was $4.3 billion.

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 September 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 third 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 third 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 September 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 September 30, 2025						At December 31, 2024
Contract						Balance Sheet Classification						(Millions of dollars)
Commodity						Accounts and notes receivable, net						$	91					$	122
Commodity						Long-term receivables, net						94						15
Total Assets at Fair Value												$	185					$	137
Commodity						Accounts payable						$	155					$	127
Commodity						Deferred credits and other noncurrent obligations						3						26
Total Liabilities at Fair Value												$	158					$	153

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Consolidated Statement of Income: The Effect of Derivatives
												Gain / (Loss) Three Months Ended September 30												Gain / (Loss) Nine Months Ended September 30
Type of												2025						2024						2025						2024
Contract						Statement of Income Classification						(Millions of dollars)
Commodity						Sales and other operating revenues						$	(71)					$	258					$	(129)					$	18
Commodity						Purchased crude oil and products						35						55						(28)						16
Commodity						Other income (loss)						(2)						(8)						(9)						13
Total												$	(38)					$	305					$	(166)					$	47

The amount reclassified from AOCL to “Sales and other operating revenues” from designated hedges for the first nine months of 2025 was a loss of $34 million compared with a loss of $43 million in the same period of the prior year. At September 30, 2025, before-tax deferred gains in AOCL related to outstanding crude oil price hedging contracts were $7 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 September 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 September 30, 2025						(Millions of dollars)
Derivative Assets - not designated						$	2,222					$	2,044					$	178					$	5					$	173
Derivative Assets - designated						$	8					$	1					$	7					$	—					$	7
Derivative Liabilities - not designated						$	2,202					$	2,044					$	158					$	5					$	153
Derivative Liabilities - designated						$	1					$	1					$	—					$	—					$	—
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 $12.8 billion and $14.2 billion at September 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 $407 million and $611 million at September 30, 2025, and December 31, 2024, respectively, with a majority of the allowance relating to non-trade receivable balances.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The majority of the company’s receivable balance is concentrated in trade receivables, with a balance of $16.0 billion at September 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 September 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 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

The company issued $11.0 billion in aggregate principal amount of floating and fixed rate notes in 2025 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 in February 2025			$	5,500

			Principal
			(Millions of dollars)
3.950% notes due 2027			$	500
4.050% notes due 2028			650
Floating rate notes due 2028			600
4.300% notes due 2030			1,200
Floating rate notes due 2030			400
4.500% notes due 2032			1,250
4.850% notes due 2035			900
Total Long-Term Debt Issued in August 2025			$	5,500

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 18. Acquisition of Hess Corporation

On July 18, 2025, the company acquired 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 approximate 38 percent 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 was 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 measurements were made for acquired assets and liabilities, and adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as information necessary to complete the analysis is obtained. Oil and gas properties were valued using a discounted cash flow approach that incorporated internally generated price assumptions and production profiles together with appropriate operating cost and development cost assumptions. Debt assumed in the acquisition was valued based on observable market prices for Hess’s debt. As a result of measuring the assets acquired and the liabilities assumed at fair value, there was no goodwill or bargain purchase recognized.

									At July 18, 2025
									(Billions of dollars)
Current assets									$	3.3
Properties, plant and equipment									73.7
Other assets									2.5
Total assets acquired									79.5
Current liabilities									3.1
Long-term debt(1)									10.0
Deferred income taxes									11.0
Other liabilities									2.4
Total liabilities assumed									26.5
Noncontrolling interest(2)									5.0
Net assets acquired / purchase price									$	48.0

(1) Includes finance leases

(2) Related to Hess Midstream LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The long-term debt assumed in the transaction is detailed in the table below:

			Principal
Hess Corporation			(Millions of dollars)
4.300% due 2027			$	1,000
7.875% due 2029			467
7.300% due 2031			631
7.125% due 2033			540
6.000% due 2040			750
5.600% due 2041			1,250
5.800% due 2047			500
Total Hess Corporation Debt			$	5,138
Hess Midstream Operations LP
5.125% due 2028			$	550
5.875% due 2028			800
6.500% due 2029			600
4.250% due 2030			750
5.500% due 2030			400
Term loan and credit facility borrowings			646
Total Hess Midstream Operations LP Debt			$	3,746
Unamortized discounts and debt issuance costs			(61)
Total Long-Term Debt Assumed			$	8,823
Fair market value adjustment for debt acquired in the acquisition			247
Fair Market Value of Long-Term Debt Assumed			$	9,070

The following table presents revenue and earnings for Hess since the acquisition date (July 18, 2025), for the periods presented. In addition to the loss quantified in the table, Chevron incurred incremental costs associated with the transaction, resulting in a total Hess-related impact of a loss of approximately $250 million in third quarter 2025. Excluding severance and other transaction related costs, Hess-related earnings were approximately $150 million in the quarter.

			Three Months Ended September 30						Nine Months Ended September 30
			2025						2025
			(Millions of dollars)
Sales and other operating revenue			$	2,906					$	2,906
Net Income (Loss) Attributable to Chevron Corporation			$	(129)					$	(129)

The following unaudited pro forma information presents the results of operations as if the acquisition of Hess had occurred January 1, 2024:

			Three Months Ended September 30									Nine Months Ended September 30
			2025			2024						2025			2024
			(Millions of dollars)
Sales and other operating revenue			$	48,169		$	51,668					$	146,536		$	153,234
Net Income (Loss) Attributable to Chevron Corporation			$	3,539		$	4,749					$	9,617		$	15,597

The unaudited pro forma information uses estimates and assumptions based on information available at the time. Management believes the estimates and assumptions to be reasonable; however, actual results may differ significantly from this pro forma financial information. The pro forma information does not reflect any synergistic savings that might be achieved from combining the operations and is not intended to reflect the actual results that would have occurred had the companies actually been combined during the periods presented. The pro forma results reflect pro forma adjustments primarily related to conforming Hess

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

accounting policies to Chevron’s, additional depreciation expense related to the fair value adjustment of the acquired property, plant and equipment, elimination of intercompany transactions and applicable income tax impacts.

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 include a third quarter increase of $166 million related to the Hess acquisition, with $114 million reported as “Selling, general and administrative expenses” and $52 million reported as “Operating expenses” on the Consolidated Statement of Income within the upstream segment. The balance 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			178
Payments			(307)
Balance at September 30, 2025			$	861

Note 20. Asset Retirement Obligations

The company records the fair value of a liability for an asset retirement obligation (ARO) both as an asset and a liability when there is a legal obligation associated with the retirement of a tangible long-lived asset and the liability can be reasonably estimated. The legal obligation to perform the asset retirement activity is unconditional, even though uncertainty may exist about the timing and/or method of settlement that may be beyond the company’s control. This uncertainty about the timing and/or method of settlement is factored into the measurement of the liability when sufficient information exists to reasonably estimate fair value. The ARO liability is initially recognized at its fair value with a increase to the related asset. Subsequent accretion of the liability and depreciation of the asset is recorded over time. The company evaluates its ARO estimates regularly or when there is significant new information about costs, timing, and duration of asset retirement activity.

AROs are primarily recorded for the company’s crude oil and natural gas producing assets. No significant AROs associated with any legal obligations to retire downstream long-lived assets have been recognized, as indeterminate settlement dates for the asset retirements prevent estimation of the fair value of the associated ARO. The company performs periodic reviews of its downstream long-lived assets for any changes in facts and circumstances that might require recognition of a retirement obligation.

The following table indicates the changes to the company’s before-tax asset retirement obligations for the nine months ended September 30, 2025 and 2024:

			2025						2024
			(Millions of dollars)
Balance at January 1			$	12,667					$	13,833
Liabilities assumed in the Hess Corporation acquisition			1,682						—
Liabilities incurred			149						38
Liabilities settled			(902)						(1,795)
Reduction due to asset sales			(456)						(8)
Accretion expense			453						441
Revisions in estimated cash flows			296						(63)
Balance at September 30			$	13,889					$	12,446

The long-term portion of the $13.9 billion balance at September 30, 2025, was $12.6 billion.