Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $3.08, ahead of the Zacks Consensus Estimate of $2.95. The outperformance could be attributed to higher-than-expected bottom line results in the company’s key upstream segment. The unit’s profit of $4.9 billion came in well above our estimate of $2.9 billion as domestic production hit a new high.
However, the company’s bottom line fell from the year-ago adjusted profit of $5.82 due to weaker oil and natural gas realizations, plus a a dip in refined product sales margins.
The company generated revenues of $48.9 billion. The sales figure missed the Zacks Consensus Estimate of $51.4 billion and decreased 28.9% year over year.
Cash Flows, Capital Expenditure
The company recorded $6.3 billion in cash flow from operations, compared to $13.8 billion a year ago. The decreasing cash flow could be attributed to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $2.5 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $4.4 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $3.8 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $3.2 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Jun 30, the San Ramon, CA-based company had $9.3 billion in cash and cash equivalents and total debt of $21.5 billion with a debt-to-total capitalization of about 12%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced second-quarter 2023 earnings of 72 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate by a penny. SLB’s bottom line also significantly increased from the year-ago quarter’s earnings of 50 cents.
SLB’s strong quarterly earnings resulted from higher stimulation services and strong activities across all areas. As of Jun 30, 2023, the company had approximately $3.2 billion in cash and short-term investments. It had a long-term debt of $11.3 billion at the end of the second quarter.
Another oil service biggie Halliburton (HAL - Free Report) reported second-quarter 2023 adjusted net income per share of 77 cents, surpassing the Zacks Consensus Estimate of 75 cents and well above the year-ago quarter profit of 49 cents (adjusted). The outperformance reflects stronger-than-expected profit from both its divisions.
Halliburton — the world’s biggest provider of hydraulic fracking — noted that the strong second-quarter performance is a thumbs-up to its solid execution and strategic priorities in North America as well as international markets. Looking ahead, HAL expects this recipe, and long-term oil and gas demand, to drive a strong and sustained upcycle.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 24 cents, a penny ahead of the Zacks Consensus Estimate. The bottom line was primarily aided by higher gathering and transport volumes. However, KMI’s second-quarter DCF was $1.1 billion, down from $1.2 billion a year ago.
As of Jun 30, 2023, Kinder Morgan reported $497 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For 2023, KMI projects a net income of $2.5 billion and a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
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Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $3.08, ahead of the Zacks Consensus Estimate of $2.95. The outperformance could be attributed to higher-than-expected bottom line results in the company’s key upstream segment. The unit’s profit of $4.9 billion came in well above our estimate of $2.9 billion as domestic production hit a new high.
However, the company’s bottom line fell from the year-ago adjusted profit of $5.82 due to weaker oil and natural gas realizations, plus a a dip in refined product sales margins.
The company generated revenues of $48.9 billion. The sales figure missed the Zacks Consensus Estimate of $51.4 billion and decreased 28.9% year over year.
Cash Flows, Capital Expenditure
The company recorded $6.3 billion in cash flow from operations, compared to $13.8 billion a year ago. The decreasing cash flow could be attributed to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $2.5 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $4.4 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $3.8 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $3.2 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Jun 30, the San Ramon, CA-based company had $9.3 billion in cash and cash equivalents and total debt of $21.5 billion with a debt-to-total capitalization of about 12%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced second-quarter 2023 earnings of 72 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate by a penny. SLB’s bottom line also significantly increased from the year-ago quarter’s earnings of 50 cents.
SLB’s strong quarterly earnings resulted from higher stimulation services and strong activities across all areas. As of Jun 30, 2023, the company had approximately $3.2 billion in cash and short-term investments. It had a long-term debt of $11.3 billion at the end of the second quarter.
Another oil service biggie Halliburton (HAL - Free Report) reported second-quarter 2023 adjusted net income per share of 77 cents, surpassing the Zacks Consensus Estimate of 75 cents and well above the year-ago quarter profit of 49 cents (adjusted). The outperformance reflects stronger-than-expected profit from both its divisions.
Halliburton — the world’s biggest provider of hydraulic fracking — noted that the strong second-quarter performance is a thumbs-up to its solid execution and strategic priorities in North America as well as international markets. Looking ahead, HAL expects this recipe, and long-term oil and gas demand, to drive a strong and sustained upcycle.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 24 cents, a penny ahead of the Zacks Consensus Estimate. The bottom line was primarily aided by higher gathering and transport volumes. However, KMI’s second-quarter DCF was $1.1 billion, down from $1.2 billion a year ago.
As of Jun 30, 2023, Kinder Morgan reported $497 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For 2023, KMI projects a net income of $2.5 billion and a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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