Chevron Reports Lower Earnings and Moves Headquarters to Houston

Chevron Corporation announced a significant decline in its second-quarter profit, attributing the downturn to lower refining margins. The oil giant reported a net income of $4.43 billion, or $2.43 per share, marking a 26% decrease from $6.01 billion, or $3.20 per share, in the same quarter last year. The company’s U.S. production segment, however, saw a profit increase of 31% to $2.16 billion, driven by higher sales volumes and oil prices, while international production profits fell by approximately 30%. In a strategic move, Chevron revealed plans to relocate its headquarters from San Ramon, California, to Houston, Texas, with CEO Mike Wirth expected to make the transition by the end of 2024. This decision comes as the company faces challenges related to its pending acquisition of Hess Corporation, which has been delayed due to an ongoing arbitration case with Exxon Mobil. The outcome of this arbitration is crucial, as it could significantly impact the timing of the Chevron-Hess deal. The company’s refining business also faced challenges, with U.S. refining profits plummeting 74% to $280 million, and international refining profits decreasing by 25% to $317 million. Wirth expressed confidence in Chevron's position, stating that the arbitration panel is expected to rule in the company’s favor, although he acknowledged that the process is taking longer than anticipated. The Chevron-Hess deal is currently under review by the Federal Trade Commission, adding another layer of complexity to the situation.