Chevron Earnings Surge as CVX Plans to Raise Permian Production 15% to Grow Domestic Supply

Chevron, the second-largest U.S. oil company after Exxon, on Friday said it made $6.3 billion in quarterly profit, up from about $1.4 billion in the same period last year and slightly below analyst expectations. Chevron Chief Executive Mike Wirth said, “Chevron is doing its part to grow domestic supply,” and aims to raise output in the Permian 15% from 2021 levels this year. “Chevron is doing its part to grow domestic supply,” Fellow oil major Exxon reported Friday also Chevron Chief Executive Mike Wirth said his company aims to raise output in the Permian 15% from 2021 levels this year.

Chevron Gas Station

Chevron is the US’s second biggest oil company after Exxon

Chevron Inc. (NYSE: $CVX) Reported Earnings Before Open Friday

$3.23 Missed $3.41 EPS AND $54 billion Beat $51 Billion Revenue Forecast

Earnings release: before market; conference call: 11 a.m.

Chevron Corporation Q1 22 Earnings:

  • Chevron reported earnings per share of $3.23. Analysts expected an EPS of $3.41, according to FactSet.
  • CVX beat estimates for overall sales, generating $54 billion against expectations of $51 billion.
  • Cash flow from operations of $8.1 billion; free cash flow of $6.1 billion
  • Record Permian Basin unconventional production grew to a record 692,000 barrels of oil equivalent per day in the first quarter, as the company raised its 2022 guidance to 700,000 – 750,000 barrels per day, an increase of over 15 percent from 2021.

“First quarter financial performance saw a return on capital employed increase to 14.7 percent and our balance sheet strengthen further. The company’s debt ratio and net debt ratio declined to 16.7 and 10.8 percent, respectively. Chevron is doing its part to grow domestic supply with U.S. oil and gas production up 10 percent over the first quarter of last year,” Wirth continued,” said Mike Wirth, Chevron’s chief executive officer.

CapEx

The company’s capital expenditures during the quarter increased to $2.8 billion, 10 percent higher than last year. The total of full-year capital spending and announced acquisitions is expected to be more than 50 percent higher than 2021.


Noble Acquisition

The company’s $13bn acquisition of Noble, the first big move in a wave of mergers that swept through the battered US oil sector last year. closed in the fourth quarter of 2020. For 2018 through 2020, the company generated asset sales proceeds of $7.7 billion, in the middle of its guidance range of $5-$10 billion.

About Chevron

Chevron Corp. is a U.S.-based integrated oil and gas company with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. It has large exposure to the Permian and to LNG with the  Wheatstone Chevron LNG Facility production starting in Western Australia

The Permian Basin remains a key source of capital flexibility, and it is a key issue behind many analysts preference for Chevron versus some of the other majors. Chevron’s liquids-rich upstream segment is likely to benefit from higher crude price realizations. This segment is expected to record higher production volumes on the back of major capital projects including Gorgon, and core developments in the Gulf of Mexico and Permian Basin.

Sources: TradersCommunity, CVX, AlphaStreet

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