Company DCF analysis file
Chevron DCF Analysis
A Chevron DCF needs commodity prices, project timing and ownership scope before a cash-growth assumption. Sales, affiliate earnings and affiliate distributions are different measures. FY2025 includes only part of the Hess ownership period, so the later combined business cannot be forecast by relabelling the historical year.
Revenue, expenses and profit on one annual basis
Historical Chevron consolidated comparison, $ millions: FY2024 ended 2024-12-31 and FY2025 ended 2025-12-31. These annual periods are separate from the later interim observation below.
| Measure | FY2024 | FY2025 |
|---|---|---|
| Sales and other operating revenues | 193,414 | 184,432 |
| Equity-affiliate income | 4,596 | 3,000 |
| Other income | 4,782 | 1,599 |
| Total revenues and other income | 202,792 | 189,031 |
| Purchased crude oil and products | 119,206 | 108,214 |
| Operating expenses | 27,464 | 28,005 |
| Selling, general and administrative | 4,834 | 5,126 |
| Depreciation, depletion and amortization | 17,282 | 20,132 |
| Total costs and other deductions, including other items | 175,286 | 169,288 |
| Income before tax | 27,506 | 19,743 |
| Consolidated net income | 17,749 | 12,485 |
Source: Annual financial statements. Annual values are reported unless a row is marked derived.
The issuer income statement does not present a single operating-income subtotal. Pretax income shown here includes financing and affiliate/nonoperating effects; it is not labelled EBIT. Purchased hydrocarbons, depletion and operating expenses need different price, volume and investment assumptions. The selected expense rows are not an exhaustive sum of total deductions.
Classify the earnings population before extrapolating it
| Reported annual income components, $ millions | FY2024 | FY2025 |
|---|---|---|
| Sales and other operating revenues | 193,414 | 184,432 |
| Equity-affiliate income | 4,596 | 3,000 |
| Other income | 4,782 | 1,599 |
Source: Annual business disclosures and financial notes. Annual values are reported unless a row is marked derived.
Consolidated sales do not include every affiliate barrel as a gross sale. Affiliate earnings are Chevron’s recognized ownership result, while cash depends on the affiliate distribution and funding policy. Applying a consolidated sales margin to affiliate volumes would change the ownership boundary.
Reconcile reported cash before forecasting investor cash
| Measure | FY2025 |
|---|---|
| Consolidated operating cash | 33,939 |
| Consolidated capex | 17,347 |
| Issuer FCF / derived subtraction | 16,592 |
| Affiliate income already reconciled | 3,000 |
| Affiliate cash distributions already reconciled | 5,282 |
Source: Annual cash-flow statement and related notes. Annual values are reported unless a row is marked derived.
For 2025, 33,939 minus 17,347 = $16,592 million. Affiliate distributions exceed affiliate income by $2,282 million, but the operating-cash reconciliation already handles that difference. Adding the distribution again would count cash twice. Gross affiliate investment and Chevron funding must likewise be matched to the chosen ownership share.
The later interim period stays separate
| Observation | Period-specific evidence |
|---|---|
| Reported period basis | Q2 2026 covers 2026-04-01 through 2026-06-30 and was released 2026-07-31. Total revenues and other income were $70,055 million in this quarter: $67,199 million of sales and other operating revenues, $2,125 million of equity-affiliate income and $731 million of other income. |
| Interpretation boundary | The complete annual period includes only part of the Hess ownership period. The later quarter therefore has a different acquisition population; affiliate distributions already in consolidated operating cash must not be added again. |
Source: official reporting for the stated period. The dated quarter is not annualized here and is not added to either full-year column. Later reporting must be checked before refreshing the valuation date.
Turn the statements into a DCF operating case
Construct a recurring operating result from production, realized pricing, downstream margins and the relevant cost base, then reconcile operating taxes, depletion, development spending and working capital. Keep project commissioning and payment dates separate. Identify which Hess volumes are acquired rather than organic and which disposals are completed. Treat affiliate distributions, loan funding and new equity contributions consistently; do not count both full project cash and only an ownership share of its costs.
| Driver | Evidence to carry into the forecast | Downside condition to test |
|---|---|---|
| Realized commodity prices | Net production and price by liquid/gas market | Lower receipts occur while committed project payments continue |
| Project start-up | Commissioning, usable output and capital cash | Output is delayed after much of the spending is paid |
| Ownership perimeter | Hess partial-year scope and affiliate distributions | Reported growth is mistaken for comparable organic production |
Compare lower prices at an unchanged spending timetable with a project delay that moves both cost and output. The two cases can have different funding and value effects. Do not capitalize an affiliate accounting result as cash or convert a signed future disposal into an already completed perimeter change.
Use the Chevron financial analysis for the broader operating context, the company forecast to state the operating assumptions, and the DCF calculator only after defining the investor cash stream. Keep the statement definitions, reporting dates and your own assumptions visible when comparing valuation cases.
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