Chevron posted strong earnings for the second straight quarter, helped by higher oil prices and strong production growth. However, the $53 billion Hess acquisition and a faltering Kazakhstan expansion project cast doubt on the company's ability to maintain that momentum over the long term.

Adjusted first-quarter earnings exceeded analysts' expectations; It reached $2.93 per share, while oil production exceeded two million barrels per day.

This strong performance is due to a combination of factors, including oil prices rising above $80 per barrel, recent acquisitions, and production growth in the Permian Basin and the new Gulf of Mexico platform.

But Chevron faces challenges that may hinder its ability to grow in the long term, and among these challenges is that the Hess acquisition deal still faces legal and regulatory obstacles, and these obstacles may hinder Chevron’s plans for growth in Guyana, a region that is seen as a major source of future growth.

A giant expansion project in Kazakhstan – which exceeds Chevron's budget – is facing schedule delays. This project is expected to make a small contribution to increasing shale oil production outside the Permian Basin.

Despite these challenges, Chevron is confident in its ability to achieve growth through its internal operations.

The company aims to grow production by between 4% and 7% this year without relying on the Hess deal. This confidence is attributed to Chevron's financial strength and significant shareholder returns, in addition to stock repurchases that amounted to $15 billion over the past year.