Chevron (NYSE: CVX) entered Q3 2025 with a mix of short-term headwinds and long-term ambitions. The company’s recently completed $55 billion acquisition of Hess Corporation adds immediate costs and complexity, but the strategic upside—particularly Hess’ Guyana assets—remains compelling. Here’s a breakdown of what Chevron announced and how drilling trends across North America provide context for its operations going forward.
Wells Drilled in the US in 2025
Includes; Wells Drilled for 2025, Account Name, Location, Drilling Rig…
📉 Financial Impact of the Hess Merger
Q3 Loss Projection
Chevron expects to post a net loss of $200M–$400M in Q3, directly tied to the Hess acquisition. While this headline number may grab attention, it’s largely a reflection of integration costs rather than operational weakness.
Adjusted Earnings Impact
The company forecasts a $50M–$150M reduction in adjusted earnings, excluding severance and other one-off charges. Roughly half of the transaction costs will be absorbed this quarter, with the rest spread over the next 12 months.
Cash Outflows
Working capital outflows of $500M–$1.5B are expected in Q3, underscoring the significant upfront cash demands of megadeals.
⚙️ Operational Outlook
Despite integration costs, Chevron is keeping operations steady:
- Production: Targeting 450,000–500,000 boe/day, factoring in some downtime.
- Capital Spending: Guided at $1.0B–$1.25B for the quarter.
This steady production profile signals Chevron’s intent to maintain balance sheet strength while absorbing Hess’ assets. The real question for investors will be how efficiently Chevron can deliver synergies in 2026–2027 once Hess is fully integrated.
🌍 Regional Wells Drilled Overview
Chevron’s drilling activity is best viewed against the broader North American landscape. Recent data shows drilling remains highly concentrated in a handful of provinces and regions:
- Colorado – Activity anchored by H&P 517.
- Gulf of Mexico (FO GULF) – Offshore programs led by TO Deepwater Asgard.
- North Dakota – Nabors X24 leads Bakken-focused operations.
- New Mexico – Patterson 815 remains one of the busiest rigs.
- Texas – Patterson 814 continues strong activity across the Permian and other key plays.
These basins collectively represent the heartbeat of U.S. shale and offshore drilling, where Chevron and its peers remain most active.
🛠️ Top Contractors and Rigs by Province
Breaking drilling activity down by contractor shows a clear set of leaders across major basins:
- Colorado – H&P 517 led the state in wells drilled.
- Gulf of Mexico – TO Deepwater Asgard dominated offshore drilling.
- North Dakota – Nabors X24 led Bakken programs.
- New Mexico – Patterson 815 was the busiest rig.
- Texas – Patterson 814 topped the list in Permian drilling.
For service providers and suppliers, these rigs and contractors highlight where efficiency, utilization, and opportunity converge.
🔑 Takeaway
Chevron’s Q3 numbers may look weak on the surface, but they reflect the unavoidable costs of absorbing Hess. The company is betting big on Guyana and steady shale production to deliver growth in the back half of the decade. Meanwhile, drilling data across the U.S. and Gulf of Mexico shows that despite consolidation, certain rigs and contractors consistently set the pace.
For investors, the message is twofold:
- Near-term losses are largely transitional.
- Long-term production growth, especially from Guyana and core U.S. basins, positions Chevron as one of the most resilient majors heading into 2026–2027.
