CVX · 10-Q · 2026Q2 · Full report

Operating Expense Trends

CHEVRON CORP · 2026-08-06 · Importance 30 · Surprise 40 · Contradicted

Operating, selling, general and administrative expenses increased to $8.765 billion in the second quarter of 2026 from $7.563 billion and to $17.507 billion for the first six months from $15.192 billion. The increases were primarily caused by the Hess acquisition and higher transportation costs, partly offset by lower employee expenses. Six-month U.S. upstream earnings also included $470 million of higher operating expenses and other costs. Depreciation, depletion and amortization increased to $6.082 billion in the quarter from $4.344 billion and to $11.890 billion for six months from $8.467 billion, primarily because of higher production, including legacy Hess assets, and higher rates.

Key facts

• The company previously announced plans to achieve $3-4 billion in structural cost reductions by the end of 2026. source
• During the second quarter of 2026, the company achieved its structural cost reduction target six months early by capturing $3 billion in annual run-rate savings. source
• Six months ended June 30, 2026 total costs and other deductions - related party: $29,048 million. source
• Operating, selling, general and administrative expenses for the three months ended June 30, 2026: $8,765 million, and for the three months ended June 30, 2025: $7,563 million. source
• Depreciation, depletion and amortization for the three months ended June 30, 2026: $6,082 million, and for the three months ended June 30, 2025: $4,344 million. source
• Six months ended June 30, 2026 total costs and other deductions: $52,311 million. source
• Year ended December 31, 2025 total costs and other deductions: $92,316 million. source
• Year ended December 31, 2025 total costs and other deductions - related party: $33,229 million. source

Impact estimates