Chevron missed second-quarter earnings expectations, hurt by lower refining margins while shares are already under pressure from delays in its pending acquisition of Hess Corporation.

Chevron shares closed Friday down 2.67%.

The oil company also said Friday that it will move its headquarters from San Ramon, California, to Houston, with Chief Executive Officer Mike Wirth moving in by the end of 2024. All corporate functions will be moved to Houston over the next five years. Wirth said the move is not related to any political dispute with California.

“Houston is the epicenter of our industry,” Wirth said on CNBC’s “Squawk Box.” “We’ve been gradually expanding our headquarters in Texas and gradually phasing it out to California. This is a continuation of a trend that’s been going on for some time.”

This is what Chevron reported for the second quarter compared with what Wall Street expected, according to a survey of analysts by LSEG:

• Earnings per share: $2.55 adjusted vs. $2.93 expected
• Revenue: $51.18 billion versus the expected $50.8 billion

Chevron’s net income fell 26 percent to $4.43 billion, or $2.43 per share, from $6.01 billion, or $3.20 per share, a year earlier. Adjusted for $243 million in foreign exchange impacts, Chevron reported earnings of $2.55 per share.

Revenue rose to $51.18 billion from $48.9 billion a year ago.

The oil major’s U.S. production segment posted a profit of $2.16 billion, up 31% from $1.64 billion in the same period a year earlier due to higher sales volumes and oil prices.

International production earnings fell about 30% to $2.3 billion compared with $3.29 billion in the same period last year due to lower natural gas sales and prices, as well as negative foreign currency impacts.

Overall, Chevron’s global oil equivalent production rose 11% to 3.29 million barrels per day thanks to record production in the Permian Basin.

The U.S. refining business earned $280 million, down 74% from $1.1 billion in the same period a year earlier, due to lower margins. International refining profit fell 25% to $317 million, compared with $426 million in the same quarter a year earlier.

Chevron’s second-quarter results come after pending acquisition of oil company Hess suffered a hard blow this week.

Chevron and Hess revealed on Wednesday that an arbitration panel will not hold a hearing until May 2025 on from Exxon Mobil claims a right of first refusal over Hess’s lucrative oil assets in Guyana.

A decision on the case is expected to come three months after the hearing, meaning the Chevron-Hess deal would not be finalized until well into next year if they prevail in arbitration. The companies had originally intended to close the transaction this year.

The Chevron-Hess deal is also under review by the Federal Trade Commission. Wirth said the FTC’s review will likely be completed in the third quarter.

The CEO said Chevron remains confident that the arbitration panel will rule in the company’s favor, though he reiterated that if Exxon wins, the Hess transaction will likely not close.

“This is taking a little bit more work and a little bit more time than we had initially anticipated,” Wirth said.

Chevron shares closed nearly 5% lower on Thursday and Hess shares fell nearly 8%. So far this year, Chevron shares have underperformed the market, down 0.4%.