War impacts production Chevron Corporation (CVX.US) said that derivative pricing will bring phased pressure.

Chevron Corporation (CVX.US) announced that its first quarter production decreased by as much as 6% due to factors such as the Iran war, mirroring the situation disclosed earlier this week by competitor Exxon Mobil Corporation. According to a filing on Thursday, Chevron Corporation stated that its daily net oil and gas equivalent production was between 3.8 million and 3.9 million barrels. In comparison, production in the fourth quarter of 2025 was at 4.05 million barrels. The company attributed the production decline to reduced output in the Persian Gulf region and Israel, as well as disruptions in Kazakhstan operations. Chevron Corporation also outlined the impact of the war-induced surge in oil and natural gas prices on its earnings. As certain derivatives are marked-to-market, the company expects to face negative impacts of up to $3.7 billion. As the impact of high-priced energy in physical deliveries is not recorded until completion, both Chevron Corporation and Exxon Mobil Corporation refer to this phenomenon as the "timing effect." Chevron Corporation stated that the negative impact from the timing effect should gradually diminish in the following quarters. Commodity price increases compared to the fourth quarter will potentially increase Chevron Corporation's upstream business segment earnings by up to $2.2 billion.