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Chevron (CVX) Q4 Earnings Beat on Record U.S. Production
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Chevron Corporation (CVX - Free Report) reported adjusted fourth-quarter earnings per share of $3.45, ahead of the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and came in above the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% year over year.
Chevron Corporation Price, Consensus and EPS Surprise
Upstream: Chevron’s production of crude oil and natural gas — at 3,392 MBOE/d (59% liquids) — rose 12.7% year over year. The latest volume statistics primarily reflect contribution from the PDC Energy acquisition and impressive output from the Permian basin — America's hottest and lowest-cost shale region.
The U.S. output surged 34.1% year over year to a record 1,598 MBOE/d but the company’s international operations (accounting for 53% of the total) edged down 1.4% to 1,794 MBOE/d.
Despite volumes improving from last year, Chevron’s fourth-quarter 2023 upstream segment profit plunged 71.1% to $1.6 billion. This was mainly on account of a decline in oil and natural gas prices.
At $58.69 per barrel, Chevron’s average realized liquids prices in the United States were $7.31 below the year-earlier levels while prices overseas fell 4% to $74.54 per barrel. As far as natural gas is concerned, the commodity was down 67.2% and 29.4%, respectively in the U.S. and internationally.
Downstream: Chevron’s downstream segment recorded a profit of $1.1 billion, declining from last year’s figure of $1.8 billion. The slip underlined lower domestic product sales margins, and unfavourable foreign currency effects.
Cash Flows, Capital Expenditure
The company recorded $12.4 billion in cash flow from operations compared to $12.5 billion a year ago. The slight decrease in cash flow could be due to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $8.1 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $3.4 billion worth of its shares.
The Zacks Rank #4 (Sell) company spent around $4.4 billion in capital and exploratory expenditures during the quarter compared to the year-ago period’s $3.8 billion.
As of Dec 31, the San Ramon, CA-based company had $8.2 billion in cash and cash equivalents and total debt of $20.8 billion with a debt-to-total capitalization of about 11.5%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
Oil service biggie Halliburton (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago quarter profit of 72 cents (adjusted). The outperformance reflects strength in the international markets, partly offset by weak performance in the North American region.
Halliburton reported fourth-quarter capital expenditure of $399 million, higher than our projection of $358.5 million. As of Dec 31, 2023, the company had approximately $2.3 billion in cash/cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 44.7. HAL also bought back $254 million worth its stock during the October-December period. The company generated $1.4 billion of cash flow from operations in the fourth quarter, leading to free cash flow of $1.1 billion.
Independent oil refiner and marketer Marathon Petroleum (MPC - Free Report) reported fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
MPC’s total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported fourth-quarter adjusted earnings per share of 28 cents, slightly below the Zacks Consensus Estimate of 31 cents. The bottom line was adversely affected by a decline in realized weighted natural gas liquid price and milder winter conditions observed in 2023. However, KMI’s fourth-quarter DCF was $1.2 billion, down $46 million from a year ago.
As of Dec 31, 2023, Kinder Morgan reported $83 million in cash and cash equivalents. Its long-term debt amounted to $27.9 billion at quarter-end. In its initial budget for 2024, KMI set its adjusted EBITDA guidance of $8.2 billion and a dividend of $1.15 per share, suggesting an increase from the prior-year reported figure of $1.13.
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Chevron (CVX) Q4 Earnings Beat on Record U.S. Production
Chevron Corporation (CVX - Free Report) reported adjusted fourth-quarter earnings per share of $3.45, ahead of the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and came in above the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% 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 — at 3,392 MBOE/d (59% liquids) — rose 12.7% year over year. The latest volume statistics primarily reflect contribution from the PDC Energy acquisition and impressive output from the Permian basin — America's hottest and lowest-cost shale region.
The U.S. output surged 34.1% year over year to a record 1,598 MBOE/d but the company’s international operations (accounting for 53% of the total) edged down 1.4% to 1,794 MBOE/d.
Despite volumes improving from last year, Chevron’s fourth-quarter 2023 upstream segment profit plunged 71.1% to $1.6 billion. This was mainly on account of a decline in oil and natural gas prices.
At $58.69 per barrel, Chevron’s average realized liquids prices in the United States were $7.31 below the year-earlier levels while prices overseas fell 4% to $74.54 per barrel. As far as natural gas is concerned, the commodity was down 67.2% and 29.4%, respectively in the U.S. and internationally.
Downstream: Chevron’s downstream segment recorded a profit of $1.1 billion, declining from last year’s figure of $1.8 billion. The slip underlined lower domestic product sales margins, and unfavourable foreign currency effects.
Cash Flows, Capital Expenditure
The company recorded $12.4 billion in cash flow from operations compared to $12.5 billion a year ago. The slight decrease in cash flow could be due to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $8.1 billion.
Further, Chevron paid $2.8 billion in dividends and bought back $3.4 billion worth of its shares.
The Zacks Rank #4 (Sell) company spent around $4.4 billion in capital and exploratory expenditures during the quarter compared to the year-ago period’s $3.8 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Dec 31, the San Ramon, CA-based company had $8.2 billion in cash and cash equivalents and total debt of $20.8 billion with a debt-to-total capitalization of about 11.5%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
Oil service biggie Halliburton (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago quarter profit of 72 cents (adjusted). The outperformance reflects strength in the international markets, partly offset by weak performance in the North American region.
Halliburton reported fourth-quarter capital expenditure of $399 million, higher than our projection of $358.5 million. As of Dec 31, 2023, the company had approximately $2.3 billion in cash/cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 44.7. HAL also bought back $254 million worth its stock during the October-December period. The company generated $1.4 billion of cash flow from operations in the fourth quarter, leading to free cash flow of $1.1 billion.
Independent oil refiner and marketer Marathon Petroleum (MPC - Free Report) reported fourth-quarter adjusted earnings per share of $3.98, which comfortably beat the Zacks Consensus Estimate of $2.36. The outperformance primarily reflects the stronger-than-expected performance of its key Refining & Marketing segment. Operating income of the segment totaled $1.2 billion, above the consensus mark of $812 million.
MPC’s total refined product sales volumes were 3,612 thousand barrels per day (mbpd), up from 3,532 mbpd in the year-ago quarter. Also, throughput rose from 2,895 mbpd in the year-ago quarter to 2,931 mbpd and outperformed the Zacks Consensus Estimate of 2,891 mbpd.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported fourth-quarter adjusted earnings per share of 28 cents, slightly below the Zacks Consensus Estimate of 31 cents. The bottom line was adversely affected by a decline in realized weighted natural gas liquid price and milder winter conditions observed in 2023. However, KMI’s fourth-quarter DCF was $1.2 billion, down $46 million from a year ago.
As of Dec 31, 2023, Kinder Morgan reported $83 million in cash and cash equivalents. Its long-term debt amounted to $27.9 billion at quarter-end. In its initial budget for 2024, KMI set its adjusted EBITDA guidance of $8.2 billion and a dividend of $1.15 per share, suggesting an increase from the prior-year reported figure of $1.13.