August 21, 2025 [ Sustainabilitymag ] -Chevron’s 2025 Q2 results show record output and progress in renewable diesel, lithium extraction and LNG expansion, advancing its lower-carbon strategy.

Chevron Corporation’s Q2 2025 results highlight not only record oil and gas production but also clear steps towards lowering the carbon intensity of its operations and building a more sustainable energy portfolio. 

While the company reported earnings of US$2.5bn compared to US$4.4bn in the same quarter last year, the period was defined by strategic investments in cleaner energy and diversification into new markets.

Renewable fuels and low carbon operations

One of the most significant sustainability milestones was the start of production at Chevron’s renewable diesel plant in Geismar, Louisiana. 

Following a capacity upgrade, the facility increased output from 7,000 to 22,000 barrels per day, positioning it as a cornerstone of Chevron’s growing renewable fuels business.

Alongside renewable diesel, Chevron continues to pursue carbon capture and offsets, hydrogen and lower-carbon power generation. 

These are part of a wider strategy to reduce the carbon intensity of its energy mix while maintaining reliable supply.

“Second quarter results reflect continued strong execution, record production and exceptional cash generation,” says Mike Wirth, Chevron’s Chairman and CEO.

“The completion of the Hess acquisition further strengthens our diversified portfolio and positions us to extend our production and free cash flow growth profile well into the next decade.”

Lithium for the energy transition

In a major step towards supporting electric vehicle growth and battery storage, Chevron entered the US lithium sector. 

The company acquired approximately 125,000 net acres in the Smackover Formation, covering Northeast Texas and Southwest Arkansas, with the aim of applying direct lithium extraction technologies. 

This marks a diversification away from hydrocarbons into critical minerals that are essential for decarbonisation.

Natural gas for energy security

Chevron also expanded its liquefied natural gas (LNG) portfolio by securing long-term contracts for US Gulf Coast offtake capacity, raising its total to seven million tonnes per year. 

LNG is positioned as a transitional fuel, balancing global energy security with lower carbon emissions compared to coal – further strengthening the company’s global gas and LNG value chain.

“Natural gas is a cleaner fuel in the sense that burning it produces fewer conventional air pollutants, like sulphur dioxide and particulates, than does burning coal or oil,” says Mark Radka, retired Head of the United Nations Environment Program’s (UNEP) Energy and Climate Branch, in an interview with UNEP.

“Recent scientific measurement campaigns, some of them supported by UNEP, have shown that methane emissions from oil and gas operations are much higher than was estimated earlier. 

“Methane is a powerful greenhouse gas, about 84 times more potent than carbon dioxide measured over a 20-year period, so any emissions undermine its credentials as a better fossil fuel. 

“So, “cleaner” is probably not the best word to describe natural gas.”

Balancing growth with sustainability

While production reached new highs, including one million barrels of oil equivalent per day in the Permian Basin, the company emphasised investment discipline. 

Capital expenditure in Q2 stood at US$3.7bn, lower than last year, with reductions in downstream spending offset by acquisitions in lithium acreage.

Chevron continues to face pressure from volatile crude prices and foreign currency fluctuations, which cut into earnings. 

However, the company has maintained a strong balance sheet with a net debt ratio of 14.8% and delivered US$5.5bn in shareholder returns during the quarter.

The sustainability trajectory, meanwhile, is defined by three pillars: scaling renewable fuels, advancing carbon reduction technologies and entering the critical minerals supply chain. 

With renewable diesel capacity expanded, lithium investments under way and LNG growth supporting lower-carbon transitions, Chevron is working to align profitability with climate-conscious energy solutions.