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Chevron reported fourth quarter results Friday along with fellow oil major ExxonMobil. $CVX announced loss in the fourth quarter of 2019 from a profit last year. from upstream impairments and write-offs on Appalachia shale, Kitimat LNG, Big Foot, and other projects..

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

$1.49 Beat $1.45 EPS BUT $36.4 Missed $38.64 Billion Revenue Forecast

Earnings

Chevron Corp. (NYSE: CVX) reported fouth quarter results on Friday. The oil major  was hit by upstream impairments and write-offs associated with Appalachia shale, Kitimat LNG, Big Foot, and other projects. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.

The net loss was $6.6 billion or $3.51 per share compared to a profit of $3.7 billion or $1.95 per share in the previous year quarter. Adjusted EPS fell by 24% to $1.49. Revenue decreased by 14% to $36.4 billion. Analysts had expected EPS of $1.45 on revenue of $38.64 billion for the fourth quarter.

 

Chevron Corporation NYSE: CVX

Market Reaction Prem Market 107.89 USD −3.51 (-3.15%)

Highlights

Upstream

  • In the Upstream division, worldwide net oil-equivalent production was 3.08 million barrels per day, unchanged from a year ago. The US upstream recorded a loss due to impairment charges primarily associated with Appalachia shale and Big Foot, lower crude oil and natural gas realizations.
  • International upstream operations recorded a 69% dip in earnings due partially to write-offs and impairment charges associated with Kitimat LNG and other gas projects, as well as lower natural gas realizations and volumes. The foreign currency effects had an unfavorable impact on earnings.

Downstream

  •  In the US downstream operations, earnings fell by 91% mainly due to higher margins on refined product sales and lower operating expenses.
  • Refinery crude oil input rose by 6% primarily due to the acquisition of the Pasadena refinery in Texas. Refined product sales rose by 2%.
  •  In the international downstream operations, earnings plunged by 69% due to lower margins on refined product sales and the unfavorable impact of foreign currency effects. Refined product sales decreased by 9% mainly due to lower diesel and gasoline sales.

Chevron Q4 2019 Earnings

Dividends and Repurchases

The company paid $9 billion in dividends, repurchased $4 billion of shares, funded its capital program and successfully captured several inorganic investment opportunities, all while reducing debt by more than $7 billion. Earlier this week, Chevron announced a quarterly dividend increase of $0.10 per share, reinforcing its commitment to growing shareholder returns.

In September, Chevron sanctioned a waterflood project in the St. Malo Field in the Gulf of Mexico. The company also acquired deepwater exploration blocks in the Mexican Gulf of Mexico and Brazil’s Campos and Santos basins, strengthening its deepwater exploration portfolio.

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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