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Chevron (CVX) Posts Easy Q2 Earnings Beat on Strong Prices
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Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $5.82, beating the Zacks Consensus Estimate of $5.02 and surging from the year-earlier quarter's profit of $1.71.
The outperformance could be attributed to robust commodity prices and product margins, which propelled both CVX segments to better-than-expected bottom line results.
The company generated revenues of $68.8 billion. The sales figure beat the Zacks Consensus Estimate of $55.8 billion and increased 82.9% year over year.
Chevron Corporation Price, Consensus and EPS Surprise
Upstream: Chevron’s production of crude oil and natural gas decreased 7.4% from the year-earlier level to 2,896 MBOE/d (58% liquids).
The year-over-year decline reflects the end of the Erawan and Rokan concessions in Thailand and Indonesia, respectively, to go with entitlement effects. These factors were partly offset by strength in the Permian Basin.
The U.S. output was up 3.2% year over year to 1,172 MBOE/d, though the company’s international operations (accounting for 60% of the total) fell 13.4% to 1,724 MBOE/d.
Despite being pulled down by the dip in volumes, Chevron’s upstream segment recorded a profit of $8.6 billion in the second quarter of 2022, rocketing from the $3.2 billion earned in the year-ago period and also beating the Zacks Consensus Estimate of $7.5 billion.
This was primarily on account of a significant improvement in commodity prices. At $89 per barrel, Chevron’s average realized liquids prices in the U.S. were 64.8% above the year-earlier levels while prices overseas jumped 64.5%. On the natural gas front, its realizations soared 188% and 87.6%.
Downstream: Chevron’s downstream segment recorded a profit of $3.5 billion, soaring from last year’s figure of $839 million and handily beating the consensus mark of $1.8 billion. The improvement underlined higher product sales margins and strong jet fuel demand following the continued easing of pandemic restrictions.
Cash Flows, Capital Expenditure
The company recorded $13.7 billion in cash flow from operations, compared to $7 billion a year ago. The soaring cash flow could be attributed to strong price realizations in the upstream business. Importantly, Chevron’s free cash flow for the quarter was $10.6 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $2.5 billion worth of its shares.
The Zacks Rank #2 (Buy) company spent $3.1 billion in capital and exploratory expenditures during the quarter compared to the year-ago period’s $1.9 billion.
As of Jun 30, the San Ramon, CA-based company had $12 billion in cash and cash equivalents and total debt of $26.2 billion with a debt-to-total capitalization of about 14.6%.
Important Energy Releases So Far
Let’s take a look at some key energy releases so far.
Schlumberger (SLB - Free Report) , the largest oilfield contractor, announced second-quarter earnings of 50 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 40 cents. SLB recorded total revenues of $6.8 billion, outpacing the Zacks Consensus Estimate by 7.8%.
Schlumberger’s strong quarterly earnings resulted from higher sales of exploration data licensing and strong drilling activities in land and offshore resources in North America and the international market. In further good news for investors, SLB revised its 2022 revenue outlook upward to at least $27 billion. This reflects that it expects year-over-year revenue growth in the high-teens compared with the prior projection of mid-teens. Increased participation in growth of drilling and completion activities across the world brightened Schlumberger’s outlook.
Smaller rival Halliburton (HAL - Free Report) reported second-quarter adjusted net income per share of 49 cents, surpassing the Zacks Consensus Estimate of 45 cents and well above the year-ago quarter profit of 26 cents. HAL’s outperformance reflects stronger-than-expected profit from both its divisions.
Meanwhile, revenues of $5.1 billion were 36.9% higher than the corresponding period of 2021 and came ahead of the Zacks Consensus Estimate of $4.7 billion. North American revenues rose 54.6% year over year to $2.4 billion, while revenues from Halliburton’s international operations were up 23.9% from the year-ago period to $2.6 billion. Investors should know that HAL has outsized exposure to the North American land drilling market.
Energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 23 cents per share. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s results.
Kinder Morgan projects net income attributable to the midstream player for 2022 at $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
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Chevron (CVX) Posts Easy Q2 Earnings Beat on Strong Prices
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $5.82, beating the Zacks Consensus Estimate of $5.02 and surging from the year-earlier quarter's profit of $1.71.
The outperformance could be attributed to robust commodity prices and product margins, which propelled both CVX segments to better-than-expected bottom line results.
The company generated revenues of $68.8 billion. The sales figure beat the Zacks Consensus Estimate of $55.8 billion and increased 82.9% year over year.
Chevron Corporation Price, Consensus and EPS Surprise
Chevron Corporation price-consensus-eps-surprise-chart | Chevron Corporation Quote
Segment Performance
Upstream: Chevron’s production of crude oil and natural gas decreased 7.4% from the year-earlier level to 2,896 MBOE/d (58% liquids).
The year-over-year decline reflects the end of the Erawan and Rokan concessions in Thailand and Indonesia, respectively, to go with entitlement effects. These factors were partly offset by strength in the Permian Basin.
The U.S. output was up 3.2% year over year to 1,172 MBOE/d, though the company’s international operations (accounting for 60% of the total) fell 13.4% to 1,724 MBOE/d.
Despite being pulled down by the dip in volumes, Chevron’s upstream segment recorded a profit of $8.6 billion in the second quarter of 2022, rocketing from the $3.2 billion earned in the year-ago period and also beating the Zacks Consensus Estimate of $7.5 billion.
This was primarily on account of a significant improvement in commodity prices. At $89 per barrel, Chevron’s average realized liquids prices in the U.S. were 64.8% above the year-earlier levels while prices overseas jumped 64.5%. On the natural gas front, its realizations soared 188% and 87.6%.
Downstream: Chevron’s downstream segment recorded a profit of $3.5 billion, soaring from last year’s figure of $839 million and handily beating the consensus mark of $1.8 billion. The improvement underlined higher product sales margins and strong jet fuel demand following the continued easing of pandemic restrictions.
Cash Flows, Capital Expenditure
The company recorded $13.7 billion in cash flow from operations, compared to $7 billion a year ago. The soaring cash flow could be attributed to strong price realizations in the upstream business. Importantly, Chevron’s free cash flow for the quarter was $10.6 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $2.5 billion worth of its shares.
The Zacks Rank #2 (Buy) company spent $3.1 billion in capital and exploratory expenditures during the quarter compared to the year-ago period’s $1.9 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 $12 billion in cash and cash equivalents and total debt of $26.2 billion with a debt-to-total capitalization of about 14.6%.
Important Energy Releases So Far
Let’s take a look at some key energy releases so far.
Schlumberger (SLB - Free Report) , the largest oilfield contractor, announced second-quarter earnings of 50 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 40 cents. SLB recorded total revenues of $6.8 billion, outpacing the Zacks Consensus Estimate by 7.8%.
Schlumberger’s strong quarterly earnings resulted from higher sales of exploration data licensing and strong drilling activities in land and offshore resources in North America and the international market. In further good news for investors, SLB revised its 2022 revenue outlook upward to at least $27 billion. This reflects that it expects year-over-year revenue growth in the high-teens compared with the prior projection of mid-teens. Increased participation in growth of drilling and completion activities across the world brightened Schlumberger’s outlook.
Smaller rival Halliburton (HAL - Free Report) reported second-quarter adjusted net income per share of 49 cents, surpassing the Zacks Consensus Estimate of 45 cents and well above the year-ago quarter profit of 26 cents. HAL’s outperformance reflects stronger-than-expected profit from both its divisions.
Meanwhile, revenues of $5.1 billion were 36.9% higher than the corresponding period of 2021 and came ahead of the Zacks Consensus Estimate of $4.7 billion. North American revenues rose 54.6% year over year to $2.4 billion, while revenues from Halliburton’s international operations were up 23.9% from the year-ago period to $2.6 billion. Investors should know that HAL has outsized exposure to the North American land drilling market.
Energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter 2022 adjusted earnings per share of 27 cents, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s 23 cents per share. Contributions from natural gas pipelines and Products Pipelines primarily aided KMI’s results.
Kinder Morgan projects net income attributable to the midstream player for 2022 at $2.5 billion. For this year, it expects a dividend of $1.11 per share, suggesting an increase of 3% from the prior year. For 2022, KMI forecasts DCF generation of $4.7 billion and adjusted EBITDA of $7.2 billion.
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