Chevron’s Record Output Fuels Strong Quarterly Close

Chevron capped off its 2025 fiscal year with a robust final quarter, surpassing analyst profit forecasts and achieving an all-time high in production volume. The company now faces the strategic challenge of maintaining this growth momentum while streamlining parts of its asset portfolio.

Key financial and operational metrics for the quarter are outlined below:

• Earnings Per Share (EPS): $1.52 (Consensus Expectation: $1.47)
• Quarterly Revenue: $46.87 billion
• Global Production: 4.045 million barrels of oil equivalent per day (Record High)
• 2026 Capital Expenditure (CAPEX) Budget: $18 to $19 billion

Even as production hits new peaks, Chevron is actively restructuring its portfolio. A central element of this strategy involves the potential divestment of pipeline infrastructure within the Denver-Julesburg (DJ) Basin. These assets generate approximately $200 million in annual EBITDA and could fetch over $2 billion in a sale.

This move aligns with a broader corporate focus on reallocating capital from peripheral operations to higher-return projects. While the DJ Basin remains a crucial production hub—with output surging from a previous 150,000 to roughly 380,000 barrels per day—future investment emphasis is shifting toward the Permian Basin and major international ventures.

Should investors sell immediately? Or is it worth buying PDC Energy?

Historic Production Peak Driven by Integration

The record quarterly performance was significantly propelled by global output, which exceeded 4 million barrels of oil equivalent per day by the end of 2025. The successful integration of PDC Energy's operations was a major contributor to this milestone. In key U.S. regions, namely the Permian and DJ Basins, the company leveraged operational synergies. These efficiency gains form the foundation for a plan to achieve further cost reductions in the billions of dollars by the end of 2026.

2026: The Year of Operational Efficiency

For the current 2026 fiscal year, Chevron's leadership has declared a "race for efficiency." Nearly half of the planned $19 billion capital budget is earmarked for U.S. upstream projects. The company is placing a strong emphasis on technological innovation to drive down costs, aiming for a 10% to 15% reduction in per-well expenses across its integrated portfolio through advanced reservoir modeling and predictive maintenance techniques.

The pace of development in U.S. shale regions during the first half of 2026 will be largely influenced by OPEC+ production decisions and the resulting commodity price volatility. Chevron's strategy is to maintain a technological cost advantage, ensuring that new production records continue to create shareholder value even in a fluctuating price environment.