CVX

MKT CAP $448.1BP/E 21.8DIV YIELD 3.08%FCF YIELD 6.03%REV TTM $215.3B +10.2%NET INCOME $20.6B +50.1%NET DEBT $21.7B52W 146.75 – 226.78SEC XBRL · TTM TO Invalid Date

How CVX rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

34%

of sentences unchanged

Added

439

new sentences

Dropped

636

sentences removed

Length

−6,231

words, now 43,165

New in FY2025

Derivative Commodity Instruments Chevron is exposed to market risks related to the price volatility of crude oil, refined products, NGLs, natural gas, LNG and refinery feedstocks.
The company uses derivative commodity instruments to manage these exposures on a portion of its activity, including firm commitments and anticipated transactions for the purchase, sale and storage of crude oil, refined products, NGLs, natural gas, LNG and feedstock for company refineries.
The results of these activities were not material to the company’s financial position, results of operations or cash flows in 2025.
The change in fair value of Chevron’s derivative commodity instruments in 2025 was not material to the company’s results of operations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents The company uses the Monte Carlo simulation method as its Value-at-Risk (VaR) model to estimate the maximum potential loss in fair value, at the 95 percent confidence level with a one-day holding period, from the effect of adverse changes in market conditions on derivative commodity instruments held or issued.
Based on these inputs, the VaR for the company’s primary risk exposures in the area of derivative commodity instruments at December 31, 2025 and 2024 was not material to the company’s cash flows or results of operations.
There were no open foreign currency derivative contracts at December 31, 2025.
At year-end 2025, the company had no interest rate swaps.
Millions of dollars 2025 2024 2023 Balance at January 1 $ 945 $ 936 $ 868 Net additions 395 264 327 Expenditures (281) (255) (259) Balance at December 31 $ 1,059 $ 945 $ 936 The company records asset retirement obligations when there is a legal obligation associated with the retirement of long-lived assets and the liability can be reasonably estimated.
The liability balance of approximately $15.0 billion for asset retirement obligations at year-end 2025 is related primarily to upstream properties.
For the company’s other ongoing operating assets, such as refineries and chemicals facilities, no provisions are made for exit or cleanup costs that may be required when such assets reach the end of their useful lives unless a decision to sell or otherwise decommission the facility has been made, as the indeterminate settlement dates for the asset retirements prevent estimation of the fair value of the asset retirement obligation.
At the end of 2025, the liability balance was $2.2 billion.
Refer to the discussion below for additional information on environmental matters and their impact on Chevron, and on the company’s 2025 environmental expenditures.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents Suspended Wells Information related to suspended wells is included in Note 21 Accounting for Suspended Exploratory Wells .
Using definitions and guidelines established by the American Petroleum Institute, Chevron estimated its worldwide environmental spending in 2025 at approximately $2.8 billion for its consolidated companies.
Included in these expenditures were approximately $0.8 billion of environmental capital expenditures and $2.0 billion of costs associated with the prevention, control, abatement or elimination of hazardous substances and pollutants from operating, closed or divested sites, and the decommissioning and restoration of sites.
For 2026, total worldwide environmental capital expenditures are estimated at $0.7 billion.
Estimates and assumptions are based on management’s experience and other information available prior to Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents the issuance of the financial statements.
During 2025, Chevron’s UOP DD&A for oil and gas properties was $16.2 billion, and proved developed reserves at the beginning of 2025 were 6 billion barrels for consolidated companies.
If the estimates of proved reserves used in the UOP calculations for consolidated operations had been lower by five percent across all oil and gas properties, UOP DD&A in 2025 would have increased by approximately $900 million. 2.
Refer to Table V , “Proved Reserve Quantity Information,” for the changes in proved reserve estimates for each of the three years ended December 31, 2023, 2024 and 2025, and to Table VII , “Changes in the Standardized Measure of Discounted Future Net Cash Flows From Proved Reserves” for estimates of proved reserve values for each of the three years ended December 31, 2023, 2024 and 2025.
This Oil and Gas Reserves commentary should be read in conjunction with the Properties, Plant and Equipment section of Note 1 Summary of Significant Accounting Policies , which includes a description of the “successful efforts” method of accounting for oil and gas exploration and production activities.
Determination as to whether and how much an asset is impaired involves management estimates on highly uncertain matters, such as future commodity prices, operating expenses, carbon costs, production profiles, the pace of the energy transition, and the outlook for global or regional market supply-and-demand conditions for crude oil, NGLs, natural gas, Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents commodity chemicals and refined products.
A sensitivity analysis of the ARO impact on earnings for 2025 is not practicable, given the broad range of the company’s long-lived assets and the number of assumptions involved in the estimates.
The determination of pension plan expense and obligations is based on a number of actuarial assumptions.
For 2025, the company used an expected long-term rate of return of 7.1 percent and a discount rate for service costs of 5.7 percent and a discount rate for interest cost of 5.1 percent for the primary U.S. pension plan.
The actual return for 2025 was 11.1 percent.
For the 10 years ended December 31, 2025, actual asset returns averaged 6.0 percent for this plan.
Additionally, with the exception of three years within this 10-year period, actual asset returns for this plan equaled or exceeded 7.1 percent during each year.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents Total pension expense for 2025 was $677 million.
As an indication of the sensitivity of pension expense to the long-term rate of return assumption, a one percent increase in this assumption for the company’s primary U.S. pension plan, which accounted for about 59 percent of companywide pension expense, would have reduced total pension plan expense for 2025 by approximately $93 million.
A one percent increase in the discount rates for this same plan would have reduced pension expense for 2025 by approximately $175 million.
The aggregate funded status recognized at December 31, 2025, was a net liability of approximately $70 million.
At December 31, 2025, the company used a discount rate of 5.5 percent to measure the obligations for the primary U.S. pension plan.
As an indication of the sensitivity of pension liabilities to the discount rate assumption, a 0.25 percent increase in the discount rate applied to the company’s primary U.S. pension plan, which accounted for about 56 percent of the companywide pension obligation, would have reduced the plan obligation by approximately $247 million, and would have increased the plan’s surplus from $804 million to $1.1 billion.
For the company’s OPEB plans, expense for 2025 was $88 million, and the total liability, all unfunded at the end of 2025, was $2.0 billion.
OPEB plan, the company used a discount rate for service cost of 5.8 percent and a discount rate for interest cost of 5.2 percent to measure expense in 2025, and a 5.3 percent discount rate to measure the benefit obligations at December 31, 2025.
Discount rate changes, similar to those used in the pension sensitivity analysis, resulted in an immaterial impact on 2025 OPEB expense and OPEB liabilities at the end of 2025.
Refer to page 98 in Note 23 Employee Benefit Plans for more information on the $3.1 billion of before-tax actuarial losses recorded by the company as of December 31, 2025.
In addition, information related to company contributions is included on page 101 in Note 23 Employee Benefit Plans under the heading “Cash Contributions and Benefit Payments.” Business Combinations – Purchase-Price Allocation Accounting Accounting for business combinations requires the allocation of the company’s purchase price to the various assets and liabilities of the acquired business at their respective fair values.

and 399 more.

Gone since FY2024

Risk Factors for a discussion of some of the inherent risks that could materially impact the company’s results of operations or financial condition.
Acquisition and Disposition of Assets The company continually evaluates opportunities to dispose of assets that are not expected to provide sufficient long-term value and to acquire assets or operations complementary to its asset base to help augment the company’s financial performance and value growth.
The company is targeting $10-15 billion of asset sales over the five-year period ending in 2028.
From 2024 through January 2025, the company has generated approximately $8 billion of asset sales proceeds.
Asset dispositions and restructurings may result in significant gains or losses in future periods.
In addition, 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 and result in losses that could be significant.
In 2024, the company spent $235 million related to these obligations and anticipates spending an additional $200-300 million annually through 2033.
Other Contingencies and Commitments for additional information.
In December 2024, the company sold its 20 percent non-operated interest in the Athabasca Oil Sands Project and 70 percent operated interest in the Duvernay shale in Alberta, Canada, to Canadian Natural Resources Limited for $6.5 billion before taxes, and expects to make tax payments totaling $1.5 billion in first quarter 2025.
In 2024, these assets produced 86 thousand barrels of oil-equivalent per day and generated over $2.2 billion of sales and approximately $590 million of operational net income.
As part of the sale, the buyer assumed decommissioning obligations for the transferred assets.
In October 2023, the company announced that it had entered into a definitive merger agreement with Hess Corporation.
Agreement to Acquire Hess Corporation for additional information.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Table of Contents Other Impacts The company closely monitors developments in the financial and credit markets, the level of worldwide economic activity, and the implications for the company of movements in prices for crude oil, natural gas and natural gas liquids (NGLs).
Management takes these developments into account in the conduct of daily operations and for business planning.
In fourth quarter 2024, the company announced plans to achieve $2-3 billion in structural cost reductions by the end of 2026.
These cost savings will largely come from optimizing the portfolio, leveraging technology to enhance productivity, and changing how and where work is performed, including expanded use of global capability centers.
In relation to these efforts, the company recognized a restructuring charge of $715 million after tax in fourth quarter 2024, with associated cash outflows anticipated over the next two years.
The company continues to evaluate incremental cost reduction opportunities and could incur additional restructuring and reorganization charges in future periods.
This will have an impact on the company’s pension and Other Post-Employment Benefit (OPEB) plans; however, the impact is not yet estimable and any impacts will be recognized in future periods.
Earnings trends for the company’s major business areas are described as follows: Upstream Earnings for the upstream segment are closely aligned with industry prices for crude oil, natural gas and NGLs.
These prices are subject to external factors over which the company has no control, including product demand connected with global economic conditions, industry production and inventory levels, technology advancements, production quotas or other actions imposed by OPEC+ countries, actions of regulators, weather-related damage and disruptions, competing fuel prices, natural and human causes beyond the company’s control, and regional supply interruptions or fears thereof that may be caused by military conflicts, civil unrest or political uncertainty.
Any of these factors could also inhibit the company’s production capacity in an affected region.
The company closely monitors developments in the countries in which it operates and holds investments and seeks to manage risks in operating its facilities and businesses.
The longer-term trend in earnings for the upstream segment is also a function of other factors, including the company’s ability to efficiently find, acquire and produce crude oil, natural gas and NGLs, changes in fiscal terms of contracts, the pace of energy transition, and changes in tax, environmental and other applicable laws and regulations.
In April 2024, Tengizchevroil LLP (TCO) achieved start-up of the Wellhead Pressure Management Project (WPMP) and at year-end 2024, all four pressure boost facility compressors are online and all metering stations have been converted to low pressure.
In January 2025, TCO started oil production at its Future Growth Project, which is expected to contribute to higher free cash flow.
Chevron has interests in Venezuelan assets operated by independent affiliates.
Chevron has been conducting limited activities in Venezuela consistent with the authorization provided pursuant to licenses issued by the United States government.
In fourth quarter 2022, Chevron received General License 41 from the United States government, enabling the company to resume activity in Venezuela subject to certain limitations, and the company continues such activities under this General License.
The financial results for Chevron’s business in Venezuela are being recorded as non-equity investments since 2020, where income is only recognized when cash is received and production and reserves are not included in the company’s results.
Crude oil liftings in Venezuela started in first quarter 2023, which have positively impacted the company’s results.
The company’s independent affiliates have continued to maintain safe and reliable operations; however, future impact on results of operations and financial condition remain uncertain.
Chevron maintains an equity interest in the Caspian Pipeline Consortium (CPC) which provides a primary export route for Tengiz field production in Kazakhstan.
An adverse event or incident affecting CPC operations, which CPC has experienced from time to time, could have a negative impact on the Tengiz field and the company’s results of operations and financial position.
The financial impacts of such risks, including presently imposed sanctions and the February 2025 drone attack on the CPC pumping station, remain uncertain.
Other governments (including Russia) have imposed and may impose additional sanctions and other trade laws, restrictions and regulations that could lead to disruption in our ability to produce, transport and/or export crude in the region around Russia.
Chevron holds a 39.7 percent interest in the Leviathan field and a 25 percent interest in the Tamar field in Israel.
Despite the ongoing conflict between Israel and various regional adversaries, the company continues to maintain safe and reliable operations while meeting its contractual commitments.

and 596 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

Watch CVX. Know when insiders buy.

One email the day a filing lands. Free.