Chevron Q4 Earnings: Profits Decline Amid Lower Oil Output, Dividend Hike Offers Silver Lining

Oil giant Chevron Corp CVX shares are trading lower after the company reported fourth-quarter results.

Revenues and other income of $52.23 billion beat the consensus of $46.75 billion.

In the fourth quarter, net oil-equivalent production declined slightly to 3,350 MBOED from 3,392 MBOED a year ago quarter.

In 2024, worldwide net oil-equivalent production rose 7% year over year to 3,338 MBOED, led by a full year of legacy PDC Energy and strong production in the Permian Basin (+18% Y/Y).

Adjusted net earnings were $3.63 billion, with adjusted EPS at $2.06 (down from $3.45 a year ago) in the quarter, missing the consensus of $2.11.

U.S. Upstream reported earnings of $1.420 billion versus a loss of $1.347 billion a year ago on the absence of decommissioning charges for previously sold certain assets and impairment charges, primarily related to California assets.

International upstream earnings fell to $2.884 billion from $2.933 billion a year ago, owing to lower realizations and higher operating expenses partly due to severance charges, impairments, and lower liftings.

U.S. downstream reported a loss of $348 million vs. a profit of $470 million due to reduced margins on refined product sales and increased operating expenses.

International downstream earnings declined to $100 million from $677 million in the prior year quarter, on decreased margins on refined product sales and impairments.

Operating cash flow decreased to $31.5 billion in 2024 from $35.6 billion a year ago owing to lower earnings and higher payments linked to asset retirement obligations.

Chevron returned $27.0 billion of cash to shareholders in the year, including dividends of $11.8 billion and share repurchases of $15.2 billion.

The company held cash and equivalents of $6.8 billion as of December 31, 2024.

Dividend: The company increased its quarterly dividend by 5% to $1.71 per share, payable on March 10, to shareholders of record as of February 14, 2025.

Mike Wirth, Chevron’s chairman and chief executive officer, said, “The company started up several key projects in the Gulf of America, including the industry-first, high-pressure Anchor project. In Kazakhstan, Tengizchevroil completed the Wellhead Pressure Management Project and recently started up the Future Growth Project.“

The company recently completed asset sales in Canada, the Republic of Congo and Alaska, progressed the acquisition of Hess Corporation, and announced a target of $2 billion – $3 billion of structural cost reductions by the end of 2026.

Read: Chevron Kicks Off Whale Oil Production: Details

In December, the company stated that it expects organic capital expenditure of $14.5 billion to $15.5 billion for consolidated subsidiaries and $1.7 billion to $2.0 billion for affiliate capital expenditures for 2025.

Investors can gain exposure to CVX via EA Series Trust Strive U.S. Energy ETF DRLL and SPDR Select Sector Fund – Energy Select Sector XLE.

Price Action: CVX shares are down 1.69% at $153.68 premarket at the last check Friday.

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