Chevron CVX · USD

Operating Segments and Geographic DataAlthough each subsidiary of Chevron is responsible for its own affairs, Chevron Corporation manages its investments in these subsidiaries and their affiliates. The investments are grouped into two business segments, Upstream and Downstream, representing the company’s “reportable segments” and “operating segments.” Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. “All Other” activities of the company include worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology activities. The company’s segments are managed by “segment managers” who report to the “chief operating decision maker” (CODM), which is comprised of the company’s Executive Committee. The segments represent components of the company that engage in activities from which revenues are earned and expenses are incurred. Each segment has discrete financial information available. The CODM regularly reviews the operating results of these segments to assess their performance and make decisions about resources to be allocated to the segments. The company's primary country of operation is the United States of America, its country of domicile, while other components of the company's operations are reported as “International” (outside the United States).Segment Sales and Other Operating Revenues Products are transferred between operating segments at internal product values that approximate market prices. Revenues for the upstream segment are derived primarily from the production and sale of crude oil, natural gas and NGLs, as well as the sale of third-party production of natural gas.

Revenue Revenue from contracts with customers is presented in “Sales and other operating revenues” along with some activity that is accounted for outside the scope of Accounting Standard Codification (ASC) 606, which is not material to this line, on the Consolidated Statement of Income. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another (including buy/sell arrangements) are combined and recorded on a net basis and reported in “Purchased crude oil and products” on the Consolidated Statement of Income. Refer to Note 14 Operating Segments and Geographic Data for additional information on the company’s segmentation of revenue. Receivables related to revenue from contracts with customers are included in “Accounts and notes receivable” on the Consolidated Balance Sheet, net of the allowance for doubtful accounts. The net balance of these receivables was $12,314 and $14,227 at December 31, 2025 and 2024, respectively. Other items included in “Accounts and notes receivable” represent amounts due from partners for their share of joint venture operating and project costs and amounts due from others, primarily related to derivatives, leases, buy/sell arrangements and product exchanges, which are accounted for outside the scope of ASC 606. Contract assets and related costs are reflected in “Prepaid expenses and other current assets” and contract liabilities are reflected in “Accrued liabilities” and “Deferred credits and other noncurrent obligations” on the Consolidated Balance Sheet. Amounts for these items are not material to the company’s financial position.

Lease CommitmentsThe company enters into leasing arrangements as a lessee; any lessor arrangements are not significant. Operating lease arrangements mainly involve land, bareboat charters, terminals, drill ships, drilling rigs, time chartered vessels, office buildings and warehouses, and exploration and production equipment. Finance leases primarily include facilities, vessels and office buildings. Details of the right-of-use assets and lease liabilities for operating and finance leases, including the balance sheet presentation, are as follows:At December 31, 2025At December 31, 2024OperatingLeasesFinanceLeasesOperatingLeasesFinanceLeasesDeferred charges and other assets$6,054 $— $5,315 $— Properties, plant and equipment, net— 1,413 — 570 Right-of-use assets*$6,054 $1,413 $5,315 $570 Accrued liabilities$1,831 $— $1,519 $— Short-term debt— 786 — 58 Current lease liabilities1,831 786 1,519 58 Deferred credits and other noncurrent obligations4,154 — 3,551 — Long-term debt— 659 — 546 Noncurrent lease liabilities4,154 659 3,551 546 Total lease liabilities $5,985 $1,445 $5,070 $604 Weighted-average remaining lease term (in years)6.66.56.313.2Weighted-average discount rate4.0 %4.9 %3.7 %4.6 %* Includes non-cash additions of $2,845 and $971 in 2025, and $2,205 and $40 in 2024 for right-of-use assets obtained in exchange for new and modified lease liabilities for operating and finance leases, respectively. Total lease costs consist of both amounts recognized in the Consolidated Statement of Income during the period and amounts capitalized as part of the cost of another asset. Total lease costs incurred for operating and finance leases were as follows:Year-ended December 31202520242023Operating lease costs*$3,719 $3,447 $2,984 Finance lease costs 154 8352Total lease costs$3,873 $3,530 $3,036 * Includes variable and short-term lease costs.

Long-Term Debt Total long-term debt including finance lease liabilities at December 31, 2025, was $39,781. The company’s long-term debt outstanding at year-end 2025 and 2024 was as follows: At December 3120252024Weighted Average Interest Rate (%)1Range of Interest Rates (%)2PrincipalPrincipalNotes due 20262.9542,250 2,250 Notes due 20273.5941.018 - 8.0005,000 2,000 Notes due 20284.7623.850 - 5.8754,700 600 Notes due 20295.8723.250 - 7.8751,567 500 Notes due 20303.9552.236 - 5.5005,350 1,500 Notes and Debentures due 20317.4847.300 - 8.625734 102 Notes and Debentures due 20324.9444.500 - 8.6252,083 183 Notes due 20337.125540 — Notes due 20354.9094.850 - 4.9801,650 — Notes due 20405.1522.978 - 6.0001,043 293 Notes due 20415.6965.600 - 6.0001,646 397 Notes due 20435.250330 330 Notes due 20445.050222 222 Notes due 20475.5694.950 - 5.800687 187 Notes due 20494.200237 237 Notes due 20502.7632.343 - 3.0781,750 1,750 Notes due 20753.722154 — Debentures due 20977.25060 60 Bank loans due 2026 to 20285.4602.448 - 8.040532 193 Term loans and credit facility borrowings7.3207.250 - 8.136367 — Medium-term notes, maturing from 2033 to 20385.7863.688 - 7.84020 20 Notes due 2025— 4,012 Total including debt due within one year$30,922 14,836 Debt due within one year(2,345)(4,012)Fair market value adjustment for debt acquired in the Noble and Hess acquisitions649 529 Reclassified from short-term debt9,941 8,250 Unamortized discounts and debt issuance costs(45)(14)Finance lease liabilities3659 546 Total long-term debt$39,781 $20,135 1 Weighted-average interest rate at December 31, 2025.2 Range of interest rates at December 31, 2025.3 For details on finance lease liabilities, see Note 5 Lease Commitments. Chevron has an automatic shelf registration statement that expires in November 2027. This registration statement is for an unspecified amount of nonconvertible debt securities issued or guaranteed by Chevron Corporation or CUSA.Long-term debt excluding finance lease liabilities with a principal balance of $30,922 matures as follows: 2026 – $2,345; 2027 – $5,723; 2028 – $4,752; 2029 – $1,567; 2030 – $5,350; and after 2030 – $11,185.See Note 9 Fair Value Measurements for information concerning the fair value of the company’s long-term debt.

Short-Term Debt At December 3120252024Commercial paper$4,642 $5,386 Notes payable to banks and others with originating terms of one year or less96 131 Current maturities of long-term debt2,345 4,012 Current maturities of long-term finance leases786 58 Redeemable long-term obligations3,049 3,069 Subtotal10,918 12,656 Reclassified to long-term debt(9,941)(8,250)Total short-term debt$977 $4,406 Redeemable long-term obligations consist primarily of tax-exempt variable-rate put bonds that are included as current liabilities because they become redeemable at the option of the bondholders during the year following the balance sheet date. The company may periodically enter into interest rate swaps on a portion of its short-term debt. At December 31, 2025, the company had no interest rate swaps on short-term debt. At December 31, 2025, the company had $11,400 in 364-day committed credit facilities with various major banks that enable the refinancing of short-term obligations. The credit facilities allow the company the option to convert outstanding short-term obligations into a term loan for a period of up to one year from the facilities termination date. This supports commercial paper borrowing and can also be used for general corporate purposes. The company’s practice has been to replace expiring commitments with new commitments on substantially the same terms, maintaining levels management believes appropriate. Any borrowings under these facilities would be unsecured indebtedness at interest rates based on the Secured Overnight Financing Rate (SOFR), or an average of base lending rates published by specified banks and on terms reflecting the company’s strong credit rating. No borrowings were outstanding under these facilities at December 31, 2025. The company classified $9,941 and $8,250 of short-term debt as long-term at December 31, 2025 and 2024, respectively. Settlement of these obligations is not expected to require the use of working capital within one year, as the company had the intent and the ability, as evidenced by committed credit facilities, to continue refinancing them.

Acquisition of Hess Corporation On July 18, 2025, the company acquired Hess Corporation (Hess), an independent oil and gas exploration and production company. Hess’s principal upstream operations are in the United States, Guyana and Malaysia. Hess’s operations also include an approximately 38 percent ownership interest in Hess Midstream LP (HESM), with operations primarily in the Bakken shale in the Williston Basin area of North Dakota.The aggregate purchase price of Hess was approximately $48 billion, including 15.38 million shares of Hess common stock purchased in open market transactions in the first quarter of 2025 and 301.25 million shares of Chevron common stock issued as closing consideration in July. As part of the transaction, the company assumed debt with an aggregate outstanding principal value of $8.8 billion. The shares issued represented approximately 15 percent of the shares of Chevron common stock outstanding immediately after the transaction closed on July 18, 2025.The acquisition was accounted for as a business combination under ASC 805, which requires assets acquired and liabilities assumed to be measured at their acquisition date fair value. Provisional fair value measurements were made for acquired assets and liabilities, and adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as information necessary to complete the analysis is obtained. Oil and gas properties were valued using a discounted cash flow model that incorporated assumptions for commodity prices, future production volumes, operating costs, development costs, and risk-adjusted discount rates. The fair value of the noncontrolling interest was determined based on the quoted market price of HESM on the acquisition date. Debt assumed in the acquisition was valued based on observable market prices for Hess’s debt. As a result of measuring the assets acquired and the liabilities assumed at fair value, there was no goodwill or bargain purchase recognized.At July 18, 2025(Billions of dollars)Current assets$3.4 Properties, plant and equipment73.5 Other assets2.6 Total assets acquired79.5 Current liabilities3.1 Long-term debt(1)10.0 Deferred income taxes11.0 Other liabilities2.4 Total liabilities assumed26.5 Noncontrolling interest(2)5.0 Net assets acquired / purchase price$48.

Chevron’s Chief Information Officer (CIO) oversees Chevron’s broader IT program, which includes the company’s cybersecurity program and its ability to remediate and recover from a cybersecurity incident to minimize business and operational impacts. Chevron’s CIO joined Chevron in 2024, bringing more than 20 years of experience leading global innovation initiatives in digital, data, full supply chains, vehicle commerce, energy, and IT operations for technology and automotive companies. Chevron’s Chief Information Security Officer (CISO) reports to the CIO and leads a global cybersecurity team. Chevron’s CISO has 20 years of cybersecurity experience and is responsible for providing a single and consolidated view of the company’s enterprise cybersecurity risk. Before joining Chevron, he held senior leadership roles, including that of CISO, at other multinational, publicly traded companies.Chevron operates four Cyber Intelligence Centers around the world, some co-located with critical assets, with cyber professionals who monitor and respond to cyber threats 24 hours a day, 365 days a year, to limit the scope and impact of cyber incidents in its networks. The cybersecurity organization provides the IT leadership, which includes Chevron’s CIO, with regular cybersecurity operations reports detailing prevention, detection, mitigation and remediation efforts associated with cyber incidents, both on Chevron’s networks and third-party supplier networks. The leadership of the cybersecurity organization has authority to mobilize a cross-functional cyber incident response team, including outside cybersecurity experts, to drive mitigation and remediation actions. Status updates on incidents are provided to senior management and to the Board, as appropriate. The company’s dedicated cyber risk organization meets regularly with business units to raise cyber risk awareness and keep diverse cybersecurity skill sets connected across the enterprise. Chevron has invested in broad cybersecurity awareness and required training to educate those with access to Chevron’s networks on company policy and best practices. The company conducts regular phishing tests to train and assess its workforce’s ability to identify malicious emails. Chevron’s Corporate Audit Department has a dedicated team responsible for IT and information security (including cybersecurity) audits. Chevron also leverages external resources to reinforce its cybersecurity capabilities.

Taxes Income TaxesYear ended December 31202520242023Income tax expense (benefit)U.S. federalCurrent$444 $854 $895 Deferred885 748 666 State and localCurrent309 275 211 Deferred(88)10 1 Total United States1,550 1,887 1,773 InternationalCurrent5,520 7,388 6,745 Deferred188 482 (345)Total International5,708 7,870 6,400 Total income tax expense (benefit)$7,258 $9,757 $8,173 For 2025, ASU 2023-09 requires an expanded view of the rate reconciliation as well as a summary of income taxes paid for material jurisdictions. Chevron has elected a prospective presentation. The tables below represent the new standard for 2025 and revert to prior guidance for comparable years. The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate for the year ended December 31, 2025, in accordance with ASU 2023-09 guidance, is detailed in the following table:Taxes On IncomeYear ended December 312025$%Income (loss) before income taxesUnited States$5,979 International13,764 Total income (loss) before income taxes19,743 U.S. Federal statutory income tax4,146 21.0 %State and local income tax, net of federal income tax effect1142 0.7 %Foreign tax effectsAustraliaStatutory tax rate difference 334 1.7 %Additional non-U.S. income taxes2287 1.5 %Foreign exchange356 1.8 %Other14 0.1 %KazakhstanAdditional non-U.S. income taxes2624 3.2 %Equity affiliate accounting effect3(353)(1.8)%Other128 0.6 %Nigeria - primarily additional non-U.S. income taxes368 1.9 %Saudi Arabia - primarily statutory tax rate difference583 3.0 %Other foreign jurisdictions345 1.7 %Total foreign tax effects2,686 13.6 %Effect of cross-border tax laws - primarily surplus foreign tax credits4(2,477)(12.5)%Changes in valuation allowances42,773 14.0 %Other adjustments5(12)(0.1)%Total income tax expense and effective tax rate$7,258 36.8 %1 State taxes in California and New Mexico make up the majority (greater than 50%) of the tax effect in this category.2 Includes items such as withholding taxes and oil profit taxes. 3 After‑tax equity affiliate income is included in pretax earnings, which results in a negative adjustment in the rate reconciliation.4 Surplus foreign tax credits and their related valuation allowances are shown gross but largely offset.5 Tax credits, nontaxable and nondeductible items and changes in unrecognized tax benefits were all immaterial and included in other adjustments.The reconciliation between the U.S.