Chevron, the second-largest U.S. oil company after Exxon, on Friday reported Q4 adjusted earnings that missed expectations, while revenues topped forecasts. CVX Q4 net income rose to $6.35B, or $3.33/share, from $5.05B, or $2.63/share, in the year-ago period, but fell from $11.2B in Q3, as $1.1B in write-downs in international oil and gas operations left adjusted earnings short of forecasts. For the full year, Chevron said earnings totaled $35.5B for its highest-ever annual profit, more than double the prior year and about a third above its previous record in 2011.
The company also had annual cash flow from operations of $49.6B and free cash flow of $37.6B in 2022. Earlier this week, Chevron raised its quarterly dividend by more than 6% to $1.51 per share (or $6.04 per share annualized) and tripled its spending for stock repurchases to $75 billion.
Chevron Inc. (NYSE: $CVX) Reported Earnings Before Open Friday
Chevron Corporation Q4 22 Earnings:
“We delivered record earnings and cash flow in 2022, while increasing investments and growing U.S. production to a company record. Again in 2022, we delivered on our financial priorities: returning cash to shareholders, investing capital efficiently, and paying down debt.”” Chevron CEO Mike Wirth said in a statement.
Highlights
- Adj EPS: $4.09 (exp $4.27)
- For the full year, earnings totaled $35.5B, its highest-ever annual profit, more than double the prior year and about a third above its previous record in 2011.
- Revenue: $56.47B (exp $53.76B)
- For the full year, revenues totaled $246.3B, up from $162.5B the previous year.
- Annual cash flow from operations of $49.6B and free cash flow of $37.6B in 2022.
- Upstream Earnings $5.49B (est $7.17B), primarily due to the absence of Q4 2021 asset sale gains, while international earnings jumped 31.2% to $2.87B, citing higher realizations.
- Downstream segment Earning $1.8 billion
- Worldwide Production 3,011 MBOE/D, -3.4% (Y/Y)
- U.S. production improved 4%, mainly in the Permian Basin
- International output dropped 7% due primarily to the end of concessions in Thailand and Indonesia.
- Earlier this week, Chevron raised its quarterly dividend by more than 6% to $1.51 per share (or $6.04 per share annualized) and tripled its spending for stock repurchases to $75 billion.
CVX Stock Market Reaction
- $180.455 -7.335 (3.91%) Pre-Market
- $180.455 +6.465 (3.72% YTD
- $180.455 +45.085 (33.31%) Over year
- $180.455 +49.265 (37.55%) Over 5 years
- 52wk High $188.22
- 52wk Low $123.62
Production
- Worldwide net oil-equivalent production was 3.01 million barrels per day in fourth quarter 2022 and 3.00 million barrels per day for the full-year 2022.
- Both quarterly and annual production were down 3 percent compared to their respective 2021 periods. International production decreased 7 percent in 2022 primarily due to the end of concessions in Thailand and Indonesia, while U.S. production increased 4 percent compared to 202
Capex
Capital and exploratory expenditures for the company’s consolidated entities (C&E) in 2022
were $12.3 billion, compared with $8.6 billion in 2021. Additionally, the company’s share of
equity affiliate capital and exploratory expenditures (Affiliate C&E) was $3.4 billion in 2022 and
$3.2 billion in 2021 and did not require cash outlays by the company.
C&E for 2022 includes $1.3 billion of inorganic spend largely associated with the formation of the Bunge joint venture and acquisition of the remaining interest in Beyond6. The acquisition of Renewable Energy
Group, Inc. is not included in the company’s C&E.
Buybacks & Dividends
Earlier this week, Chevron raised its quarterly dividend by more than 6% to $1.51 per share (or $6.04 per share annualized) and tripled its spending for stock repurchases to $75 billion.
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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