We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Chevron (CVX) Q4 Earnings Beat on Record U.S. Production
Read MoreHide Full Article
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.