Chevron’s third-quarter 2026 results highlight a strategy focused on sustaining production, improving efficiency and generating cash through disciplined investment. The company reported $10.4 billion in adjusted earnings and nearly 4 million BOE/day of global production, supported by advances in AI, production chemicals and facility optimization.
OilGasLeads’ supplied U.S. drilling dataset contains 299 Chevron well records through October 26, led by New Mexico, Colorado, Texas and North Dakota. The Permian accounts for 138 records, followed by the DJ Basin with 70 and the Williston Basin with 61. Combined with the contractor and rig breakdown, this activity provides suppliers with a geographic view of drilling demand, while Chevron’s operating strategy points to opportunities in production optimization, automation, chemicals and maintenance services.
Chevron Q3 2026 — Key Points
Based on the supplied earnings call transcript:
- Financial results: Reported earnings of $9.9 billion, or $5.06 per share. Adjusted earnings were $10.4 billion, or $5.28 per share, down $1.6 billion from the previous quarter.
- Cash generation: Operating cash flow excluding working capital reached $16.6 billion, with $14.2 billion in adjusted free cash flow. Chevron reduced debt by more than $3 billion.
- Capital spending: Organic capital expenditures were $3.9 billion. Full-year spending is expected at the low end of company guidance.
- Production: Global production was nearly 4 million BOE/day. U.S. production exceeded 2 million BOE/day for the fifth consecutive quarter, while natural gas production reached a record above 9 Bcf/day.
- Permian strategy: Production remained around 1 million BOE/day for the sixth consecutive quarter. Chevron continues to prioritize stable production, lower costs and free cash flow.
- Permian efficiencies: Management reported a greater than 25% improvement in capital spending per barrel, with drilling and completion spending down 40% and facility spending down 50%.
- Production chemicals: Advanced chemicals increased cumulative production by up to 23% during the first 12 months in Permian applications. Next-generation chemistry is moving into field pilots.
- Bakken activity: Chevron plans to reduce its rig count from three to two at year-end while maintaining approximately 180,000 BOE/day. Long laterals are expected to increase from 60% of activity in 2026 to more than 85% in 2027.
- Bakken economics: An expected 50% reduction in midstream tariffs should improve returns, expand economic drilling inventory and increase operating flexibility.
- AI and reliability: Chevron reported more than $100 million in value captured from AI during 2026. Applying AI in the DJ Basin reduced lost-production events by 50%.
- Facility optimization: Upstream debottlenecking projects added more than 85,000 barrels/day of capacity, including increases at TCO, Ballymore and Anchor.
- Venezuela growth: Chevron targets doubling gross production across three joint ventures from approximately 300,000 to 600,000 barrels/day by 2031. Management expects a self-funded program, combined capital and operating costs below $20/barrel, and no major infrastructure upgrades.
- Exploration: Chevron added 22 million acres across 12 new basins over two years and reported 15 infrastructure-led discoveries, with a 40% success rate. Management outlined exploration spending approximately 50% above its 2025 baseline.
- Refining: Record crude throughput supported stronger downstream results. A proprietary catalyst increased distillate yields by more than 10% at its largest U.S. refineries.
- Shareholder returns: Capital allocation priorities remain unchanged: dividend growth, efficient investment, a strong balance sheet and share repurchases.
Wells Drilled YTD Total record count: 299
All records are listed under Chevron U.S.A. Inc., with Activity Dates from January 4 through October 26, 2026. Counts below represent records in the supplied file.
Record count by Province/State
State / Offshore Region Record Count New Mexico 76 Colorado 72 Texas 65 North Dakota 61 Federal Offshore Gulf 14 California 9 Oklahoma 1 Arkansas 1 Total 299
Counties grouped by play/basin
These are geographic classifications based on county and available field information. County-level grouping does not establish the target formation of every well. EIA basin maps provide a reference for the geographic assignments.
Play / Basin Counties / Offshore Areas — Record Count Total Permian — Delaware Basin Lea, NM: 51; Eddy, NM: 25; Culberson, TX: 11; Reeves, TX: 6 93 Denver-Julesburg — Niobrara/Codell Weld, CO: 70 70 Williston — Bakken/Three Forks region Williams, ND: 31; McKenzie, ND: 22; Mountrail, ND: 8 61 Permian — Midland Basin Midland, TX: 44; Upton, TX: 1 45 Gulf of Mexico — Offshore South Pass Area: 6; Green Canyon: 5; Walker Ridge: 2; Mississippi Canyon: 1 14 San Joaquin Basin Kern, CA: 9 9 Piceance Basin Garfield, CO: 2 2 South Texas — Austin Chalk Webb, TX: 1 1 Arkoma Basin Pittsburg, OK: 1 1 Other / Requires Further Classification Brazos-S, TX: 1; Cass, TX: 1; Miller, AR: 1 3 Total 299
Top 10 Contractor and Rig Combinations
Rank Contractor Rig Record Count 1 Patterson 284 28 2 Patterson 278 25 3 Patterson 814 23 4 True 41 22 5 Nabors X27 21 6 Patterson 289 21 7 Patterson 815 20 8 Nabors X24 20 9 Patterson 812 20 10 H&P 517 16 Top 10 total 216
- Permian Basin: 138 records, representing 46.2% of the file.
- Permian, DJ and Williston combined: 269 records, or 90.0%.
- Contractor–rig coverage: 25 distinct combinations. The top 10 account for 72.2% of records. These are YTD record counts, rather than a current active rig count.
Chevron reported $10.4 billion in adjusted Q3 earnings and nearly 4 million BOE/day of production, emphasizing capital discipline, AI and improved recovery from existing assets. OilGasLeads’ U.S. YTD dataset contains 299 Chevron well records, with 90% concentrated in the Permian, DJ and Williston basins, highlighting key markets for drilling, completion and production service providers.
Author: phinds