en.Wedoany.com Reported - Chevron Corp.'s global upstream production grew 5% in the second quarter from the start of the year, with Permian Basin output reaching a record high, while the company's capital spending contracted during the same period. The Houston-based company's second-quarter net income rose to $12.1 billion from $2.2 billion in the first quarter of 2026, with total production approaching 4.1 million barrels of oil equivalent per day, partly benefiting from output gains tied to last year's acquisition of Hess assets. A larger driver of profits came from average selling prices significantly exceeding both the prior quarter and the year-ago period, along with strong refining performance and international production growth.
Chairman and Chief Executive Officer Mike Wirth said on a July 31 call with analysts that despite softer oil prices, the team remains focused on its core business, emphasizing cost discipline and long-term prospects—including exploration projects across multiple global regions—rather than significantly boosting output. He noted that some assets are being run at plateau levels to generate free cash flow, a lesson the industry learned over the past decade, when it largely generated no free cash flow and poured all cash into growth.
Chevron's shale and tight oil portfolio currently produces about 1.7 million barrels per day, with the Permian Basin contributing over 1 million barrels per day and the Denver-Julesburg Basin around 400,000 barrels per day. Wirth said capital spending in the Permian this year is approximately $3.5 billion, representing a 25% reduction per barrel of oil equivalent compared with 2025.
This stance aligns with his remarks three months ago. Wirth and Chief Financial Officer Eimear Bonner also detailed progress on cutting billions of dollars in costs, spanning the acquired Hess assets, overall streamlining, and field-level efficiency gains. Discussing Permian operations, Bonner said new initiatives include optimizing artificial lift, real-time facility optimization, and a new approach to operations and maintenance through an asset-tiering perspective, which have delivered consistent performance at the surface level and improved drilling and completion efficiency.
Chevron shares rose 2% to around $196 in afternoon trading on July 31, bringing year-to-date gains to nearly 30%, with the company's market value exceeding $390 billion.
