Chevron estimates Hess acquisition to impact third quarter earnings

Chevron Corporation (NYSE: CVX) reported preliminary estimates for the financial impact of its Hess Corporation acquisition on third quarter 2025 results, according to a company filing dated September 25, 2025.

The company estimates Hess-related impacts will result in a loss of $200 million to $400 million for the third quarter. Excluding severance and other transaction costs, Chevron projects adjusted earnings from the Hess acquisition of $50 million to $150 million for the quarter.

The acquisition, which closed on July 1, is expected to contribute 450,000 to 500,000 barrels of oil equivalent per day in net production during the third quarter, including downtime impacts. Capital expenditures related to Hess operations are projected at $1.0 billion to $1.25 billion.

Chevron expects depreciation, depletion and amortization costs of $1.2 billion to $1.4 billion from the acquired Hess assets, reflecting both legacy operations and purchase price allocation impacts.

The company anticipates approximately half of the cash outflows for severance and transaction costs will occur in the third quarter, with the remainder expected within 12 months. Total severance and transaction costs are estimated at $350 million to $450 million.

Chevron projects a working capital outflow of $500 million to $1.5 billion in the third quarter and expects approximately 2 billion shares of common stock outstanding at September 30, 2025.

The company also reported $410 million in proceeds from the sale of Malaysia/Thailand joint development area assets during the quarter.

Chevron expects to report full third quarter results around October 31, 2025. The preliminary estimates have not been reviewed by the company's independent accounting firm and remain subject to adjustment.

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