Chevron Shatters Quarterly Earnings Records

Chevron Corporation

After exceeding Q2 projections for both adjusted earnings and revenues, helped by the strongest prices for oil and natural gas in at least a decade, Chevron (NYSE:CVX) gained 3.6% pre-market on Friday.

Chevron (NYSE:CVX) reported its highest quarterly net earnings ever, $11.62 billion, or $5.95 per share, more than doubling the $3.08 billion, or $1.60 per share, earned during the corresponding period in 2017.

The oil and gas production sector, which brought in $8.6 billion, up from $3.2 billion in the same quarter last year, and the refined products sector, which more than doubled to $3.5 billion, both contributed significantly to the record profit.

Total revenue for Q2 increased by 83% year over year to $68.7B, above Wall Street expectations by $11B.

Stock Buyback Program Increased for Chevron

As cash flow from operations more than quadrupled in the quarter to $21.8 billion from $11.2 billion, the business said that it had increased the upper limit of its stock buyback program to as much as $15 billion, up from an earlier maximum of $10 billion, and that it had paid down some of its debt.

Chevron’s (NYSE:CVX) debt ratio decreased from 18.4% at the end of the previous year to 14.6%.

Global net production in Q2 decreased 7.4% year over year to 2.9M boe/day; U.S. output increased 3.2% to 1.17M boe/day, primarily as a result of growth in the Permian Basin; and international production decreased 13.4%, primarily as a result of the termination of concessions in Thailand and Indonesia.

Chevron’s (NYSE:CVX) average realized sales price for crude oil and natural gas liquids increased by 64.8% to $89/bbl for U.S. Upstream, and the average realized sales price for natural gas increased by 188% to $6.22/Mcf.

Refinery crude oil input for U.S. Downstream decreased by 8% to 881K bbl/day, mostly because of planned turnarounds.

CEO Michael Wirth explained that Chevron has more than quadrupled investment compared to previous year to grow both traditional and new energy business lines.

Chevron’s (NYSE:CVX) stock price return showed a YTD gain of 26 percent and a rise of 48 percent over the previous year.

Image: DepositPhotos © yerbolat 

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