We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Refining, Higher Oil Power Chevron's (CVX) Q3 Earnings Beat
Read MoreHide Full Article
U.S. energy giant Chevron Corp. (CVX - Free Report) reported strong third-quarter results amid the recovery in commodity prices, production gains and robust refining profits. The company reported earnings per share of $1.03, higher than the Zacks Consensus Estimate of 99 cents and the year-ago profit of 68 cents.
Quarterly revenue of $36,205 million surpassed the Zacks Consensus Estimate of $33,667 million and were up 20.1% year over year.
Chevron becomes the second integrated supermajor after ExxonMobil Corp. (XOM - Free Report) in reporting third quarter numbers. European rivals Royal Dutch Shell plc and BP plc (BP - Free Report) are scheduled to report during the next week.
Segment Performance
Upstream: Chevron’s total production of crude oil and natural gas increased 8.1% compared with last year’s corresponding period to 2,717 thousand oil-equivalent barrels per day (MBOE/d). The U.S. output decreased 2.4% year over year to 681 MBOE/d but the company’s international operations (accounting for 75% of the total) was up 12.2% to 2,036 MBOE/d.
Apart from the core business in Gulf of Mexico, the rise in output could be attributed to contributions from major capital projects – Gorgon and Angola LNG – shale assets, as well as and lower downtime associated with maintenance activities.
The rise in production was supported by higher oil realizations, the result being a healthy improvement in Chevron’s upstream segment profit – from $454 million in the year-earlier quarter to $489 million.
Downstream: Chevron’s downstream segment achieved earnings of $1,814 million, a massive 70.3% higher than the profit of $1,065 million last year. The jump primarily underlined increase in domestic refining margins and gains from international asset sales.
Cash Flows
Importantly, Chevron delivered a good cash flow performance this quarter – an important gauge for the oil and gas industry – with $5,370 million in cash flow from operations, up from $5,311 million a year ago.
Costs & Expenses
Exploration costs fell from $258 million in the third quarter of 2016 to $239 million. The second-largest U.S. oil company by market value after ExxonMobil spent $4,456 million in capital expenditures during the quarter, a considerable decline from the $5,175 million incurred a year ago. Roughly 88% of the total outlays pertained to upstream projects.
Shares of Chevron have gained 13.8% during the third quarter, outperforming the industry's 10.8% increase.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Refining, Higher Oil Power Chevron's (CVX) Q3 Earnings Beat
U.S. energy giant Chevron Corp. (CVX - Free Report) reported strong third-quarter results amid the recovery in commodity prices, production gains and robust refining profits. The company reported earnings per share of $1.03, higher than the Zacks Consensus Estimate of 99 cents and the year-ago profit of 68 cents.
Quarterly revenue of $36,205 million surpassed the Zacks Consensus Estimate of $33,667 million and were up 20.1% year over year.
Chevron becomes the second integrated supermajor after ExxonMobil Corp. (XOM - Free Report) in reporting third quarter numbers. European rivals Royal Dutch Shell plc and BP plc (BP - Free Report) are scheduled to report during the next week.
Segment Performance
Upstream: Chevron’s total production of crude oil and natural gas increased 8.1% compared with last year’s corresponding period to 2,717 thousand oil-equivalent barrels per day (MBOE/d). The U.S. output decreased 2.4% year over year to 681 MBOE/d but the company’s international operations (accounting for 75% of the total) was up 12.2% to 2,036 MBOE/d.
Apart from the core business in Gulf of Mexico, the rise in output could be attributed to contributions from major capital projects – Gorgon and Angola LNG – shale assets, as well as and lower downtime associated with maintenance activities.
The rise in production was supported by higher oil realizations, the result being a healthy improvement in Chevron’s upstream segment profit – from $454 million in the year-earlier quarter to $489 million.
Downstream: Chevron’s downstream segment achieved earnings of $1,814 million, a massive 70.3% higher than the profit of $1,065 million last year. The jump primarily underlined increase in domestic refining margins and gains from international asset sales.
Cash Flows
Importantly, Chevron delivered a good cash flow performance this quarter – an important gauge for the oil and gas industry – with $5,370 million in cash flow from operations, up from $5,311 million a year ago.
Costs & Expenses
Exploration costs fell from $258 million in the third quarter of 2016 to $239 million. The second-largest U.S. oil company by market value after ExxonMobil spent $4,456 million in capital expenditures during the quarter, a considerable decline from the $5,175 million incurred a year ago. Roughly 88% of the total outlays pertained to upstream projects.
Balance Sheet
As of Sep 30, the San Ramon, CA-based Zacks Rank #3 (Hold) company had $6,641 million in cash and total debt of $41,972 million, with a debt-to-total capitalization ratio of about 22.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Performance
Shares of Chevron have gained 13.8% during the third quarter, outperforming the industry's 10.8% increase.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>