As Chevron Corp CVX prepares to release its third quarter earnings Friday morning, investors will for clarity on how the company is navigating both volatile oil prices and structural changes.
What To Know: In the second quarter, Chevron reported revenues of $51.181 billion, surpassing the $50.795 billion consensus, supported by a production boost to 3,292 MBOED, largely due to its PDC Energy acquisition and strong outputs from the Permian and Denver-Julesburg Basins. The company also expanded its global reach with new exploration agreements in Namibia, Brazil, Equatorial Guinea and Angola.
Despite this production increase, Chevron’s second quarter adjusted earnings fell to $4.68 billion, missing estimates, with EPS at $2.55 compared to the $2.93 consensus. Contributing factors included lower refining margins, reduced international sales volumes and adverse currency impacts.
Notably, U.S. upstream earnings rose, driven by higher volumes and realizations, while international upstream earnings dropped amid unfavorable conditions. The U.S. downstream sector struggled, with earnings down sharply due to declining refined product margins and rising costs.
What Else: Chevron also continued to return capital to shareholders, distributing $6 billion in the second quarter through dividends and share repurchases, signaling confidence in its financial stability.
A major strategic shift for Chevron is its planned relocation of headquarters from California to Houston, aiming to co-locate with its energy operations and optimize costs.
Chevron’s third quarter report will be closely watched for progress in U.S. production growth, updates on international expansion and any insights into its response to market pressures. This earnings release will be key for assessing how well the company is balancing shareholder returns with sustainable growth amid global market uncertainties.
How To Buy CVX Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Chevron’s case, it is in the Energy sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, CVX has a 52-week high of $167.11 and a 52-week low of $135.37.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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