Chevron (NYSE:CVX) reported third-quarter earnings that exceeded market forecasts, supported by higher oil production following its acquisition of Hess Corporation earlier this year.
The company posted adjusted earnings per share of $1.85, topping the Bloomberg consensus estimate of $1.66. Global production rose to 4.086 million barrels of oil equivalent per day, surpassing expectations of 3.873 million barrels per day.
“The integration of Hess is progressing well, unlocking synergies across our operations and positioning Chevron as a premier global energy company,” said Mike Wirth, Chevron’s Chairman and CEO.
Earlier this year, Chevron successfully overcame a legal challenge to its $55 billion acquisition of Hess, finalizing one of the largest energy transactions in decades. Wirth had previously noted that Chevron’s long-term strategy depended heavily on completing this deal, particularly after the company had fallen behind some of its industry peers in shareholder returns.
The Hess acquisition provides Chevron access to the prolific Stabroek Block off the coast of Guyana, a discovery estimated to contain over 11 billion barrels of recoverable oil—a major growth driver expected to support future dividend payments and help offset oil price volatility.
Capital expenditures rose to $4.4 billion, up from $4.1 billion a year earlier, reflecting increased investment in legacy Hess assets post-acquisition.
During the quarter, Chevron returned $6 billion to shareholders, including $3.4 billion in dividends and $3.4 billion in share buybacks.
Shares of Chevron, the second-largest U.S. oil producer, were slightly higher in premarket trading on Friday.