Chevron Guides for Q1 2026: Anticipates Up to $3.7B Negative Timing Effects and $4B Working Capital Outflow, Offset by $2.2B Upstream Price Benefit

Chevron Corporation has issued guidance for its first quarter 2026 financial results, detailing significant impacts from heightened commodity price volatility linked to the ongoing conflict in the Middle East. The company projects adverse timing effects of $2.7 billion to $3.7 billion on Q1 earnings and cash flow, predominantly in the Downstream segment, though these are expected to unwind in subsequent periods. Additionally, a net working capital outflow of $2 billion to $4 billion is anticipated, driven by normal Q1 activity and the elevated commodity price environment. Positively, the Upstream segment is forecast to benefit from higher commodity prices, contributing $1.6 billion to $2.2 billion to earnings compared to Q4 2025, with net oil-equivalent production expected to be between 3.8 and 3.9 MMBOED. The company also expects an after-tax charge of $350 million to $400 million related to a legal matter.