Chevron Corp. (NYSE: CVX) reported third-quarter results before markets opened Friday morning. For the quarter, the oil & gas supermajor posted diluted earnings per share (EPS) of $2.11 on total revenues of $43.99 billion. In the same period a year ago, the company reported EPS of $1.03 on total revenues of $36.2 billion. Third-quarter results compare to the consensus estimates for EPS of $2.06 and $46.67 billion in revenues.
Net income for the quarter totaled $4.06 billion compared to net earnings of $1.95 billion in the year-ago quarter. Upstream earnings soared to $3.38 billion while downstream earnings fell by 24% to $1.37 billion. Higher realized prices and increased production boosted upstream earnings while downstream earnings were lower due to an 8% drop in sales of gasoline, diesel fuel, and jet fuel.
One-time items nicked profits by $580 million and currency exchange effects lopped off another $112 million.
The U.S. upstream segment posted earnings of $828 million compared with a net loss of $26 million in the year-ago quarter. International upstream posted a profit of $2.55 billion compared with a profit of $515 million last year.
Total net oil-equivalent production in the first quarter totaled 2.95 million barrels a day, up by 89,000 barrels a day compared with the year-ago quarter. Net oil-equivalent production in the United States totaled 831,000 barrels a day, up by 150,000 barrels year over year. Average U.S. price realizations per barrel of oil rose from $45.00 a year ago to $68.15.
Internationally, liquids prices rose from $56.68 a barrel a year ago to $68.73 a barrel and net oil-equivalent production rose by 41,000 barrels a day to 2.11 million barrels a day
U.S. natural gas realizations dipped from $1.86 per thousand cubic feet to $1.80 while international prices rose from $4.93 to $6.73 per thousand cubic feet.
CEO Michael Wirth said:
Third quarter earnings more than doubled from a year ago. Our strong financial results reflect higher production and crude oil prices coupled with a continued focus on efficiency and productivity. Quarterly cash flow from operations of $9.6 billion was the highest it has been in nearly five years. This allowed us to pay the dividend, fund our capital program, strengthen the balance sheet, and repurchase $750 million of the company’s common stock.
The earnings announcement did not include guidance, but consensus estimates for the fourth quarter of 2018 call for earnings per share of $2.34 on revenues of $48.44 billion. For the full year, earnings per share and revenues are estimated at $8.00 and $178.04 billion, respectively.
Like its fellow supermajor Exxon Mobil, Chevron benefited from higher oil prices and increased production. No secrets there.
Chevron’s shares traded up about 2.2% shortly before Friday’s opening bell at $113.78 in a 52-week range of $107.54 to $133.88. The consensus 12-month price target was $145.89 before this morning’s report.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
