Chevron's Strategic Advances In Oil Production Overshadowed By Q1 Revenue Miss

Oil giant Chevron Corp CVX reported first-quarter 2024 total revenues and other income of $48.716 billion, a decline of 4.1% year-over-year, missing the consensus of $50.661 billion. 

Sales and other operating revenues fell to $46.58 billion from $48.84 billion a year ago.

Worldwide net oil-equivalent production rose to 3,346 MBOED from 2,979 MBOED a year ago, primarily due to the acquisition of PDC and strong operational performance in the Permian and DJ Basins.

Adjusted net earnings were $5.42 billion, with Adjusted EPS being $2.93 (down from $3.55 YoY) in the quarter, beating the consensus of $2.87.

U.S. Upstream reported first-quarter earnings of $2.075 billion vs. $1.781 billion a year ago. The earnings increase was driven by higher sales volumes from legacy PDC assets despite increased depreciation costs and lower realizations.

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International upstream earnings fell 6.4% YoY due to lower natural gas prices, somewhat mitigated by favorable tax impacts, higher liquid realizations, and positive foreign currency effects.

U.S. downstream earnings were ~53.6% lower YoY due to lower margins on refined product sales and higher operating expenses, mainly from planned shutdowns. International downstream earnings were ~60% lower YoY due to lower margins on refined product sales.

CVX returned $6 billion of cash to shareholders during the quarter, including dividends of $3 billion and share repurchases of nearly $3 billion.

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Dividend: The company declared a quarterly dividend of $1.63 per share, payable June 10, to all holders of common stock at the close of business on May 17.

Operating cash flow totaled $6.8 billion, compared to $7.2 billion a year ago, reflecting lower earnings and higher spending on expansion of the retail marketing network and asset retirements.

CVX held cash and equivalents of $6.278 billion as of March-end.

Price Action: CVX shares are trading lower by 0.89% at $163.81 premarket at the last check Friday.

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