Chevron will report first-quarter earnings on Friday, May 1, giving investors a fresh look at how one of the largest U.S. energy companies handled a sharp move in crude prices, Middle East disruptions, and several company-specific cash-flow headwinds.
The company’s earnings call is scheduled for 11 a.m. EST, with CEO Mike Wirth, CFO Eimear Bonner, and Investor Relations chief Jeanine Wai expected to discuss the results.
The backdrop looks favorable at first because oil prices moved sharply higher during the quarter. The U.S. Energy Information Administration (EIA) said Brent crude started the year at $61 per barrel and finished the first quarter at $118 per barrel, marking the largest inflation-adjusted quarterly increase in data going back to 1988.
That kind of price move could help Chevron’s business, which includes oil and natural gas production across the U.S. and international markets. Chevron told investors in an April filing that higher commodity prices are expected to lift first-quarter upstream earnings by $1.6 billion to $2.2 billion compared with the fourth quarter of 2025.
Chevron flagged a major cash-flow headwind
The risk for Chevron investors is that the oil-price benefit may be harder to see in the headline numbers because the company already warned about several large offsets before releasing results.
Chevron said timing effects are expected to reduce first-quarter earnings and cash flow from operations excluding working capital by about $2.7 billion to $3.7 billion, with most of the impact landing in the downstream segment.
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Those timing effects come from derivatives used as economic hedges on physical hydrocarbon shipments and from the company’s use of LIFO accounting. Chevron said derivatives are marked to market at the end of the quarter, while the earnings impact from the related physical shipments is recognized only after delivery is completed.
The company also said these effects are generally negative when commodity prices rise and are expected to unwind in future periods.
Chevron’s first-quarter report may show a gap between what investors expect from higher oil prices and what the income statement shows. The company can benefit from stronger commodity prices in upstream operations and still report pressure from downstream timing items, working capital, and special charges.
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Working capital adds another pressure point for Chevron
Chevron also expects working capital to result in a net outflow of about $2 billion to $4 billion, reflecting normal first-quarter activity and the impact of higher commodity prices. That can pressure reported cash flow, even if the underlying business benefits from a stronger oil market.
The company also flagged a downstream legal charge of roughly $350 million to $400 million tied to a litigation reserve associated with ceased operations. Chevron said it expects to treat the charge as a special item, and the charge will also hurt cash flow from operations, excluding working capital.
The combination creates a complicated setup for Friday’s report. Investors will likely want to know whether the timing effects reverse quickly, whether working capital normalizes later in the year, and whether the downstream legal charge is isolated to the first quarter.
Production growth remains central to the Chevron story
Chevron’s production outlook will also be a key part of the report because growth has been central to the company’s investment case. Chevron said first-quarter upstream production is expected to be about 3.8 million to 3.9 million barrels of oil equivalent per day, mainly reflecting downtime at Tengizchevroil and reduced production in the Middle East, including Israel and the Partitioned Zone.
That makes the first-quarter update important because Chevron ended 2025 with strong production momentum. In fourth-quarter results, the company said worldwide production and U.S. production rose 12% and 16%, respectively, to record levels in 2025.
It also highlighted the Hess integration, the startup of the Tengizchevroil Future Growth Project, several Gulf of America project milestones, and Permian Basin production reaching 1 million barrels of oil equivalent per day.
Chevron reported fourth-quarter earnings of $2.8 billion, adjusted earnings of $3 billion, cash flow from operations of $10.8 billion, and adjusted free cash flow of $4.2 billion. The company also shared a 4% dividend increase to $1.78 per share, reinforcing the importance of cash flow to the shareholder-return story.
Chevron investors will listen for what comes next
The year-over-year comparison gives investors another important benchmark. Chevron earned $3.5 billion, or $2 per diluted share, in the first quarter of 2025, while adjusted earnings totaled $3.8 billion, or $2.18 per share. The company also returned $6.9 billion to shareholders during that quarter through dividends and share repurchases.
Friday’s report will likely be judged on more than earnings per share because the company’s pre-earnings update already showed how many moving pieces are in the quarter. Higher crude prices should support Chevron’s upstream results, yet timing effects, working capital, production downtime, and a legal charge could make the quarter look less clean than the oil market suggests.
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