📅 Aug 05, 2026Chevron9 MIN18 SEGMENTS · 3 SPEAKERS
Chevron CEO, Mike Wirth discusses steps toward powering AI data centers with Microsoft, 2Q profits, and his unique outlook on ...
What Michael Wirth said
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Chevron CEO Michael Wirth reported record quarterly results, citing strong production and refinery throughput, with U.S. production at nearly 2.1 million barrels per day and global production up 20% year-over-year. He prioritized debt paydown over aggressive reinvestment, citing cash flow volatility. On the Hess acquisition, he said synergies hit $1.5 billion early and share buybacks reduced 75% of issued shares. Wirth discussed Venezuela growth toward 400,000 barrels a day by 2028 and a 20-year, 2.7 GW power deal with Microsoft for AI data centers, with FID later this year and first power in 2028. On oil prices, he cited ample inventories and reduced Chinese demand as buffers, but noted ongoing flow disruptions.
Key takeaways
Chevron's U.S. production hit a record 2.1 million barrels a day, with global production up 20% year-over-year.
Hess synergies reached $1.5 billion, 50% higher than expected, and 75% of shares issued for the deal were repurchased.
Venezuela production could rise to 400,000 barrels a day by 2028, from 280,000 at the end of last quarter.
Chevron signed a 20-year, 2.7 GW power deal with Microsoft, with FID later this year and first power in 2028.
Chevron is looking at further growth opportunities in Venezuela and other markets, though deals face a volatile market.
5:25Now also, you did a breakthrough deal with Microsoft that I thought was one of the best of the kinds of things that an oil company, resource company could do. How did that come about?
You know, David, if you wanted to have one person to talk to you about the crazy world that is oil right now, yes, Mike Wirth, that's who it would be. That's who I would pick. And he is Chevron's Chairman, CEO, and he reported the highest quarterly profit in at least six years. Of course, surging food prices, you paid for that at the pump. And joining us to discuss it is none other than Mike Wirth. Mike, thank you for coming on our show.
All right. So Mike, you have always talked a lot about the great buyback and the dividend this quarter. You spent a huge amount of money trying to get the balance sheet in great shape, paying down debt. Why did you choose that method of allocation? Because I wanted — I really want to know this because you did not go full bore when trying to find new things, you wanted to go full bore on attacking that debt.
Jim, the quarter really was about consistent execution, strong production and record U.S. refinery throughput. Our key assets around the world ran at or near full capacity. In the U.S., production set an all-time record at nearly 2.1 million barrels a day. Global production is up 20% versus the same quarter a year ago, 5% versus first quarter of this year. So really strong performance in our upstream and in our downstream. Our refineries in the US had their all-time highest refinery runs that yielded the strong quarter financially. And in a commodity business, that cash first goes to the balance sheet. We stay very disciplined over time in terms of commitment to our dividend, reinvestment in the business, maintaining a strong balance sheet and then share buybacks as our fourth priority. But cash flows are volatile and a strong balance sheet is your friend in a volatile industry. And so in the near term, we paid down some debt. We've got a very strong balance sheet and we'll see how this market unfolds as time goes forward.
Now you had done a huge acquisition and you talk about some really, pretty amazing synergies with Hess that just sound like this was already a deal that has paid off gigantically.
Well, it's a deal that closed a year ago this month, and integration of Hess strengthens our portfolio. We accelerated financial delivery. We achieved $1.5 billion of synergies 6 months earlier and 50% higher than originally expected. The free cash flow from the Hess assets have been roughly double the incremental dividends that go with the shares we issued for the transaction. Free cash flow is accretive on a per share basis and we've actually repurchased 75% of the shares that were issued for the transaction already. So we've got a bigger, stronger portfolio. It enhances and extends our growth into 2030. And what was a good deal at the time looks even better today.
You know, Mike, it's David. And when I hear you talk about it that way, it makes me wonder, is there more out there for you? You know, Darren Woods, of course at Exxon, has talked about their desire to potentially continue to expand in the lower 48, so to speak. They moved on Pioneer, then you guys moved on Hess. Obviously had a little conflict in the middle as well. But I wonder what's your approach right now? Is there more to do when it comes to buying other assets?
Well, David, we're in a resource business and so we acquire resource through exploration and organic activity. We unlock more resource through technology and then we can acquire assets or companies. We've actually recently signed some agreements in the Middle East and with Iraq, with Libya to provide access to attractive growth opportunities. We are looking at potentially further growth in Venezuela. And so we're looking always to strengthen our portfolio to add high quality assets that will deliver production and cash flow for our shareholders well into the future and can be part of that equation over time. But right now I would say in a volatile market, deals are difficult to do and we're focused on execution, as I said, a very strong quarter that we just closed.
Now Mike, you mentioned Venezuela in the release. You don't talk much about Venezuela, but do you think you can get up to — what is it, 400,000? Is it 600,000 barrels per day? It's much better than anybody thought except for you. You always knew this could be big. How big can Venezuela be for you?
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Wirth, M. (2026, August 5). CEO Mike Wirth speaks on 2Q profits with CNBC [Interview transcript]. Chevron. CEOInterviews.AI. https://ceointerviews.ai/interview/1161166/
MLA
Michael Wirth. "CEO Mike Wirth speaks on 2Q profits with CNBC." Chevron, 5 Aug. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1161166/.
BibTeX
@misc{wirth2026_1161166,
author = {Michael Wirth},
title = {CEO Mike Wirth speaks on 2Q profits with CNBC},
howpublished = {Interview transcript, Chevron. CEOInterviews.AI},
year = {2026},
month = {aug},
url = {https://ceointerviews.ai/interview/1161166/},
note = {Speaker-attributed transcript with timestamps}
}
