Chevron announced on March 2 2026 that it had declared force majeure at its Leviathan natural‑gas field after the Israeli government ordered a temporary suspension of production on March 1 2026 for security reasons. The field, the largest in Israel, supplies 8.1 billion cubic meters of gas to Israel, Egypt and Jordan in the first nine months of 2025, with Egypt receiving more than half of the output.
The shutdown halts all gas production from Leviathan, cutting Chevron’s gas output and associated cash flow for the remainder of the quarter. While the company’s upstream portfolio is diversified, the loss of Leviathan’s output is significant because the field accounts for a sizable share of the company’s Middle‑East gas production.
Chevron’s Q4 2025 adjusted earnings were $3.0 billion, down from $3.6 billion in Q4 2024, and Q1 2025 adjusted earnings were $3.8 billion versus $5.4 billion in Q1 2024. The Leviathan shutdown will further reduce cash flow, but the company’s broader portfolio and strong cash‑flow generation provide a buffer.
The Leviathan consortium had recently approved a $2.3 billion expansion project to boost the field’s capacity. The production suspension could delay the timeline and execution of that expansion, potentially postponing the additional output that the project was designed to deliver.
The suspension is linked to heightened tensions with Iran following coordinated U.S.‑Israel military actions. The event underscores the vulnerability of energy infrastructure in the Eastern Mediterranean to geopolitical instability.
Investors reacted positively as oil prices rallied amid Middle‑East tensions, offsetting the negative impact of the shutdown. The market’s focus on the broader oil‑price rally rather than the specific operational setback highlights the relative weight of geopolitical factors.
Chevron expects to resume operations once the security situation stabilizes, and management remains confident that the company can navigate the temporary disruption while maintaining its long‑term growth trajectory.
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