CVX Stock Falls As Buybacks Cut, Q2 Profit Steady

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May 02, 2025

CVX Stock: Chevron shared its first-quarter earnings on Friday, and the results matched what Wall Street was expecting. However, the company also revealed plans to cut back on share buybacks this quarter.

This decision indicates a growing sense of caution in light of the uncertain economic landscape. The oil giant's approach highlights the hurdles that Big Oil is currently facing.

Investors are now paying close attention to how Chevron will navigate this unpredictable market.

CVX stock falls after Q2 buyback cuts and steady profit report.

Chevron plans to invest between $11.5 billion and $13 billion in share buybacks this year, according to CFO Eimear Bonner.

This amount is on the lower end of the company’s projected range, which stretches from $10 billion to $20 billion.

This decision suggests a more cautious financial strategy, reflecting Chevron’s adaptation to changing market conditions.

Investors might interpret this as a sign that the company is tightening its financial reins.

In pre-market trading on Friday, Chevron’s stock fell by 2%. This decline comes amid increasing pressure on oil producers, with crude prices dropping since April 2.

The catalyst for this downturn? U.S. President Donald Trump’s broad tariff announcement has raised fresh worries around the world, fueling fears of a possible global economic slowdown.

Oil giants like Chevron are starting to feel the pressure, as market swings and weakening demand continue to impact the industry.

OPEC+ recently surprised everyone by increasing oil output, which has put even more pressure on oil prices that were already on the decline.

Just last month, crude prices hit a four-year low, and this drop is starting to rattle investor confidence.

People are beginning to wonder about the future of Big Oil’s financial strategies.

Can these companies still manage to pay out those generous dividends and buy back shares? Or will they have to cut back on capital spending?

These questions are really putting the oil giants' strategies to the test as they try to keep investors interested.

In the latest news, Chevron announced it returned $3 billion to its shareholders through dividends last quarter.

On top of that, the company bought back $3.9 billion worth of its own shares. Looking ahead to the second quarter, Chevron plans to repurchase shares valued between $2 billion and $3.5 billion.

According to CFO Eimear Bonner, if this trend continues, Chevron's total buybacks for 2025 could fall between $11.5 billion and $13 billion.

This strategy shows a careful yet steady approach in the face of market uncertainties.

“We’re continuing to give our shareholders real value,” said Chevron’s CFO, Eimear Bonner, highlighting the company’s steady performance.

“Our share buybacks are still significant, and our dividend is growing at a faster pace than many of our competitors.”

Chevron, the second-largest oil producer in the U.S., reported solid results for the first quarter, earning $3.8 billion in adjusted profit, which comes out to $2.18 per share.

According to LSEG data, this number came in right on target with what analysts had predicted.

Chevron’s global oil production held firm at 3.35 million barrels per day, matching last year’s numbers for the same period.

Even so, earnings from oil and gas took a hit, with profits slipping to $3.76 billion from $5.24 billion a year earlier.

Looking ahead, Chevron anticipates a temporary dip in production due to scheduled maintenance, which is expected to cut output by about 105,000 barrels per day in the current quarter.

The company is working through operational challenges while keeping its investors in the loop.

Chevron experienced a bounce back in refining profits this quarter, following a tough period where its downstream business reported its first loss in four years last quarter.

A significant achievement for the company came in January when it wrapped up a major expansion at the Tengiz oilfield in Kazakhstan.

Additionally, production in the Permian Basin saw a notable increase, with output rising 12% year-over-year.

However, it wasn't all good news. These production gains were somewhat tempered by asset sales, which led to a decline in overall output.

Nevertheless, Chevron is committed to bolstering its core operations.

In April, Chevron launched production at its Ballymore project in the U.S. Gulf of Mexico, marking an important step in broadening its offshore portfolio.

Meanwhile, the company’s operations in Tengiz, Kazakhstan, are still in the limelight, as the country has consistently exceeded OPEC+ production limits.

Despite this, CFO Eimear Bonner assured that Chevron is operating without any restrictions.

In the first quarter, Chevron encountered a new challenge when a U.S. government order from the Trump administration required it to scale back operations in Venezuela.

This decision is likely to impact Chevron’s shipments from the region in the second quarter, prompting the company to adjust its plans to navigate the consequences.

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