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Chevron reported mixed second quarter results Friday along with fellow oil major ExxonMobil. $CVX net oil-equivalent production rose 9% to 3.08 million bpd as unconventional production in the Permian Basin rose more than 50% to 421,000 ppd.

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

$2.27 Beat $1.76 EPS BUT $38.85 Missed $41.69 Billion Revenue Forecast

Earnings

Chevron Corp. (NYSE: CVX) reported secondquarter results on Friday with a profit of $2.27 per share, surpassing the $1.76 average estimate of analysts. profit included a $740 million from the termination fee the company received in connection with its aborted takeover of Anadarko Petroleum Corp. Revenue was 38.85 billion less than the expected $41.69 billion. 8% decline in total revenues and other income in the second quarter of 2019 to $38.85 billion, which was lower than the street estimate of $40.55 billion.;

  • Upstream earnings rose 5.7% to $3.48 billion.
  • Downstream earnings fell 13% to $729 million. ;

Chevron Corporation NYSE: CVX

Market Reaction Pre-market $121.25 +0.51 (0.42%)

CEO Michael Wirth said, “Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”

Highlights

Net oil-equivalent production rose 9% to 3.08 million barrels per day, as unconventional production in the Permian Basin jumped more than 50% to 421,000 barrels per day.

  • Capital spending climbed 10% to $5.29 billion, led by a 27% jump in the U.S. Cash flow grew 16% to $13.8 billion.
  • Net oil-equivalent production rose 9% to 3.08 million barrels per day, as unconventional production in the Permian Basin jumped more than 50% to 421,000 barrels per day.

In May, Chevron completed the acquisition of Pasadena Refining System Inc. for $350 million. The same month, the company also decided to not pursue the acquisition of Anadarko Petroleum Corp. (NYSE: APC). Anadarko has agreed to be acquired by Occidental Petroleum (NYSE: OXY).

About Chevron

What Analysts Will Be Watching

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, AlphaStreet, XOM, CVX

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