Oil Major Chevron's Mixed Q4 Results: US Upstream Loss, Dividend Boost & More

Oil giant Chevron Corp CVX shares are rising after its reported mixed fourth-quarter FY23 results.

Total revenues and other income of $47.18 billion missed the consensus of $51.62 billion. Sales and other operating revenues fell to $48.93 billion from $54.52 billion a year ago.

Worldwide net oil-equivalent production rose to 3,392 MBOED from 3,011 MBOED a year ago in the quarter and was up 4% in 2023, primarily led by the acquisition of PDC Energy, Inc. and growth in the Permian Basin (+10% Y/Y) in the year.

Also Read: Chevron Likely To Report Lower Q4 Earnings; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

Adjusted net earnings were $6.45 billion, with Adjusted EPS being $3.45 (down from $4.09) in the quarter, beating the consensus of $3.21.

U.S. upstream reported a loss of $(1.35) billion in the fourth quarter vs earnings of $2.62 billion, owing to charges related to the decommissioning obligations for previously sold assets in the U.S. Gulf of Mexico, higher impairment charges mainly from Californian assets, and lower realizations.

On the other hand, international upstream earnings were higher Y/Y in the quarter due to the absence of write-offs and impairment charges and lower operating expenses witnessed in the prior year’s quarter.

U.S. downstream earnings were lower Y/Y due to weak margins from refined product sales. Meanwhile, international downstream earnings were higher Y/Y, led by a decline in the impact of unfavorable foreign currency.

Also Read: Chevron Eyes Sale Of Canada’s Duvernay Shale Gas Assets To Trim Portfolio: Report

Dividend: The Board of Directors raised the dividend per share by 8% to $1.63, payable on March 11, 2024, to all shareholders of record as of February 16, 2024.

Buyback: Chevron returned $26.3 billion of cash to shareholders in 2023, including dividends of $11.3 billion (+3% Y/Y) and share repurchases of $14.9 billion (+32% Y/Y).

Operating cash flow totaled $35.6 billion in FY23, compared to $49.6 billion a year ago, reflecting lower commodity prices and weak margins on refined product sales. Free cash flow was $19.8 billion in the year.

Capital expenditure stood at $4.4 billion in the quarter. CVX held cash and equivalents of $8.2 billion as of December 31, 2023.

In 2023, the company completed several acquisitions, including PDC Energy, Inc. and a majority stake in ACES Delta, LLC, and inked an acquisiton deal with Hess Corporation HES.

Also Read: M&A Activity Slows In 2023 Despite Exxon, Chevron Mega Deals: Brighter Prospects In 2024

Price Action: CVX shares are trading higher by 1.42% at $149.99 premarket on the last check Friday.

Photo by Jonathan Weiss on Shutterstock