To our stockholders
April 7, 2026
The link between energy and human progress has never been clearer. People around the globe desire a world of energy abundance and the rising prosperity and opportunity it creates.
This is evidenced by steady growth in energy consumption across all sources - with oil and gas demand at an all-time high and expected to set records this year, next year and beyond. The world needs what we provide, and Chevron has never been better positioned to deliver it.
Amid heightened geopolitical tensions and market volatility this year, we remain focused on our purpose: providing the affordable, reliable, ever-cleaner energy that enables human progress.
From completing the acquisition of Hess to achiev-ing first oil at Tengizchevroil's (TCO) Future Growth Project, successfully growing Permian production to record levels, executing capital growth projects in the Gulf of America and completing a major organi-zational restructuring, 2025 was an outstanding year.
Delivering on our commitments
Our vision is to be the global energy company most admired for its people, partnership and performance. This begins with delivering on our long-standing financial priorities:
- Grow the dividend consistently: We reward stockholders first. In January 2026, we raised the per-share dividend by 4% to $1.78 per quarter, positioning the company for our 39th year of higher per-share dividend payout - a record of growth and consistency unmatched among our peers.
- Invest capital efficiently: Capital discipline is at our core, positioning us to translate higher free cash flow into consistent stockholder returns. Since 2021, our improvement in capital efficiency has outpaced peers and the S&P 500. We've reduced Capex by 40% over the past decade. And we continue to grow and diversify our portfolio through returns-focused projects in the U.S. and around the world.
- Maintain a strong balance sheet: Our balance sheet is an asset we use to mitigate risk and manage volatility. Chevron's debt-to-CFFO ratio is superior* to the S&P 500. Our unique combination of balance sheet strength, investment-grade credit rating and premium portfolio positions Chevron well for any price environment.
- Repurchase shares steadily: We are committed to repurchasing shares steadily through the cycle, as we have done in 18 of the past 22 years. In 2025, Chevron purchased $12.1 billion of shares, representing nearly 5% of shares outstanding at year-end 2024. Additionally, the company acquired $2.2 billion of Hess shares prior to the acquisition.
Our commitment to these financial priorities has enabled us to return over three times more cash to stockholders in 2025, compared to a decade prior.
The energy landscape
Global oil consumption reached 104 million barrels per day (MMBD) in 2025, and natural gas demand hit roughly 4,300 billion cubic meters (BCM) - both record highs.
Global energy investment rose to approximately $3.3 trillion, also a record. Due simply to field decline, the Internal Energy Agency (IEA) projects over half a trillion dollars of annual investment will be required to close the oil supply gap, creating a strong case for continued investment in oil and gas development well into the future.
Executing our strategy
Our strategy is clear: Leverage our strengths to safely deliver lower-carbon energy to a growing world.
This starts with our world-class upstream portfolio, which comprises leading positions with the highest cash margins in some of the world's most prolific basins.
In 2025, we produced 3.7 million barrels of oil-equivalent per day (BOED), 12% higher than in 2024. This record output was driven by the successful integration of Hess, strong production in the Permian Basin, ramp-up to capacity at Tengizchevroil (TCO) from the Future Growth Project and project execution in the Gulf of America.
Our global shale portfolio has been streamlined into one organization to better scale technology and leverage supply chain advantages and best practices to enhance recovery and reduce cost.
The Permian is a key part of this portfolio, delivering peer-leading returns. In 2025, our Permian operations achieved one million BOED of production. We also operated plateaued levels of production in the Denver-Julesburg (DJ) and Bakken basins - at about 400,000 and 200,000 BOED respectively - and our liquids-rich position in Argentina offers attractive opportunities for future growth.
In the Gulf of America, strong project execution and successful integration with Hess increased production
to over 300,000 BOED. This included the start-up of Whale and Ballymore while bringing new wells online across Anchor, Stampede and other assets on time, and on budget. Following the Hess acquisition, Chevron is now the largest leaseholder in the Gulf of America.
In Kazakhstan, the Future Growth Project started in 2025 and ramped up to design capacity of more than one million BOED of gross production in less than 30 days. Through the Integrated Operations Control Center, TCO is optimizing production, driving higher uptime and greater efficiency.
The Hess acquisition marks an important milestone in Chevron's history and enhances our position as a global energy leader. Integration is largely complete, and we are on track to achieve $1.5 billion of synergies. The merger brings a 30% ownership in the Guyana Stabroek Block, an attractive, long-lived growth asset with more than 11 billion barrels of oil-equivalent of discovered resource. We're proud to continue the work Hess began in Guyana - a world-class asset with among the industry's highest cash margins and lowest carbon intensities.
In our Downstream & Chemicals business, we have achieved the highest U.S. refinery throughput in 20 years, with fewer refineries, due to recent expansion projects and efficiency improvements. Our U.S. refining system delivers strong cash margins, and we're a top U.S. retail fuel provider with leading margin capture. CPChem is advancing construction at feedstock-advantaged chemicals projects in the U.S. and Qatar, with start-ups expected in 2027.
Alongside portfolio enhancement, Chevron embarked on an operating model redesign and cultural transformation to improve efficiency, effectiveness and long-term competitiveness across the enterprise. We expect these changes to enhance execution, accelerate decision-making, strengthen portfolio management and improve outcomes that deliver industry-leading results.
Powering the AI future
In 2025, we announced efforts to help meet AI's growing need for reliable, large-scale power. Our significant natural gas position and capabilities in operating behind-the-meter power position us to fuel AI with American energy. We advanced work on our first power project for data centers, which is expected to be supplied with gas from the Permian Basin in West Texas.
We're also leveraging AI to create value for stock-holders. Our focus is on enhancing shale performance, improving exploration outcomes and making work safer, faster and less costly.
One example is the development of an in-house generative AI platform, where massive amounts of subsurface data collected over nearly a century can be transformed into useful insights in just seconds, radically improving the speed and quality of exploration decision-making.
Advancing lower carbon solutions
We're reducing the carbon intensity of our operations while pragmatically investing in new energy solutions - focusing where our strengths meet customer needs to deliver competitive returns.
Renewable fuels are a proven solution that can lower the carbon intensity of transportation today. We completed our Geismar expansion this year, scaling flexible, integrated and feedstock-advantaged production, and further cementing our position as a U.S. leader in renewable fuels.
In 2025, hydrogen was produced and safely introduced into a storage cavern as part of the Advanced Clean Energy Storage project in Delta, Utah. Once fully operational, this site is expected to offer storage capacity 2-3 times greater than all U.S. grid-connected batteries today.
We secured approximately 135,000 net acres in the Smackover Formation in Texas and Arkansas to evaluate lithium development, with appraisal drilling expected next year.
And in carbon capture and storage, we're advancing projects on the U.S. Gulf Coast at our Bayou Bend joint venture and our Pascagoula refinery. In Australia, we operate one of the world's largest carbon capture and storage systems, sequestering over 12 million tonnes of CO2 from our Gorgon LNG facility.
A future of performance
2025 was a year of significant change - and significant achievement - for everyone in our company. I'm grateful for the hard work, expertise and loyalty of our employees. Without their dedicated effort, our accomplishments this year would not have been possible.
As global dynamics continue to shape the energy landscape in 2026, our resilient strategy and the ingenuity of our people position us to deliver value to our stockholders in any environment.
Today, Chevron stands in the strongest position I've seen in my career, with a more confident outlook further into the future - and lower execution risk - than ever before.
On behalf of everyone at Chevron, I thank you for the trust you place in us. We're looking to the future with confidence and believe the best is yet to come.
Sincerely,
Mike
Michael K. Wirth
Chairman of the Board
and Chief Executive Officer