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) Q1 Earnings Beat on Strong U.S. Production
Read MoreHide Full Article
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $2.93, ahead of the Zacks Consensus Estimate of $2.84. 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 1,573 thousand oil-equivalent barrels per day (MBOE/d) came in above the consensus mark of 1,544 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $3.55 due to weaker oil and natural gas realizations in the United States, plus a dip in refined product sales margins.
The company generated revenues of $48.7 billion. The sales figure missed the Zacks Consensus Estimate of $49.9 billion and decreased 4.1% year over year.
Upstream: Chevron’s production of crude oil and natural gas — at 3,346 MBOE/d (59% liquids) — rose 12.3% 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 34.8% year over year to 1,573 MBOE/d but the company’s international operations (accounting for 53% of the total) edged down 2.2% to 1,773 MBOE/d.
With volumes improving from last year, Chevron’s first-quarter 2024 upstream segment profit rose 1.5% to $5.2 billion. This was partly offset by a decline in U.S. oil and natural gas prices.
At $57.37 per barrel, Chevron’s average realized liquids prices in the U.S. were 2.9% below the year-earlier levels though prices overseas increased 5.3% to $72.52 per barrel. As far as natural gas is concerned, the commodity was down 51.9% and 19.4%, respectively in the United States and internationally.
Downstream: Chevron’s downstream segment recorded a profit of $783 million, plunging from last year’s figure of $1.8 billion. The slip underlined lower product sales margins and higher operating expenses in the United States.
Cash Flows, Capital Expenditure
The company recorded $6.8 billion in cash flow from operations compared to $7.2 billion a year ago. The decrease in cash flow could be attributed to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $2.7 billion.
Further, Chevron paid $3 billion in dividends and bought back $3 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $4.1 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $3 billion.
As of Mar 31, the San Ramon, CA-based company had $6.3 billion in cash and cash equivalents and total debt of $21.8 billion with a debt-to-total capitalization of about 12%.
Important Energy Earnings So Far
While we have discussed Chevron first-quarter result in detail, let’s take a look at some other key energy reports of this season.
Oil service biggie Halliburton (HAL - Free Report) reported first-quarter 2024 adjusted net income per share of 76 cents, surpassing the Zacks Consensus Estimate of 74 cents and improving from 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 first-quarter capital expenditure of $330 million, lower than our projection of $338.7 million. As of Mar 31, 2024, the company had approximately $1.9 billion in cash/cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 44.1. HAL also bought back $250 million worth its stock during the January-March period. The company generated $487 million of cash flow from operations in the first quarter, leading to free cash flow of $206 million.
Independent oil refiner and marketer Valero Energy (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18, driven by a decline in total cost of sales. Adjusted operating income in the Refining segment totaled $1.7 billion, down from $4.1 billion in the year-ago quarter. The figure also missed our estimate of $1.6 billion.
Valero’s total cost of sales declined to $29.8 billion from the year-ago figure of $32.1 billion. The figure is also below our estimate of $30.4 billion, primarily due to lower material costs and operating expenses. The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported first-quarter adjusted earnings per share of 33 cents, a penny above the Zacks Consensus Estimate. The bottom line was favourably affected by increased financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s first-quarter DCF was $1.42 billion, up from $1.40 billion a year ago.
As of Mar 31, 2024, Kinder Morgan reported $119 million in cash and cash equivalents. Its long-term debt amounted to $30.1 billion at the quarter-end. For full-year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Chevron (CVX) Q1 Earnings Beat on Strong U.S. Production
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $2.93, ahead of the Zacks Consensus Estimate of $2.84. 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 1,573 thousand oil-equivalent barrels per day (MBOE/d) came in above the consensus mark of 1,544 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $3.55 due to weaker oil and natural gas realizations in the United States, plus a dip in refined product sales margins.
The company generated revenues of $48.7 billion. The sales figure missed the Zacks Consensus Estimate of $49.9 billion and decreased 4.1% year over year.
Chevron Corporation Price and EPS Surprise
Chevron Corporation price-eps-surprise | Chevron Corporation Quote
Segment Performance
Upstream: Chevron’s production of crude oil and natural gas — at 3,346 MBOE/d (59% liquids) — rose 12.3% 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 34.8% year over year to 1,573 MBOE/d but the company’s international operations (accounting for 53% of the total) edged down 2.2% to 1,773 MBOE/d.
With volumes improving from last year, Chevron’s first-quarter 2024 upstream segment profit rose 1.5% to $5.2 billion. This was partly offset by a decline in U.S. oil and natural gas prices.
At $57.37 per barrel, Chevron’s average realized liquids prices in the U.S. were 2.9% below the year-earlier levels though prices overseas increased 5.3% to $72.52 per barrel. As far as natural gas is concerned, the commodity was down 51.9% and 19.4%, respectively in the United States and internationally.
Downstream: Chevron’s downstream segment recorded a profit of $783 million, plunging from last year’s figure of $1.8 billion. The slip underlined lower product sales margins and higher operating expenses in the United States.
Cash Flows, Capital Expenditure
The company recorded $6.8 billion in cash flow from operations compared to $7.2 billion a year ago. The decrease in cash flow could be attributed to weaker price realizations in the upstream business. Chevron’s free cash flow for the quarter was $2.7 billion.
Further, Chevron paid $3 billion in dividends and bought back $3 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $4.1 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $3 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Mar 31, the San Ramon, CA-based company had $6.3 billion in cash and cash equivalents and total debt of $21.8 billion with a debt-to-total capitalization of about 12%.
Important Energy Earnings So Far
While we have discussed Chevron first-quarter result in detail, let’s take a look at some other key energy reports of this season.
Oil service biggie Halliburton (HAL - Free Report) reported first-quarter 2024 adjusted net income per share of 76 cents, surpassing the Zacks Consensus Estimate of 74 cents and improving from 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 first-quarter capital expenditure of $330 million, lower than our projection of $338.7 million. As of Mar 31, 2024, the company had approximately $1.9 billion in cash/cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 44.1. HAL also bought back $250 million worth its stock during the January-March period. The company generated $487 million of cash flow from operations in the first quarter, leading to free cash flow of $206 million.
Independent oil refiner and marketer Valero Energy (VLO - Free Report) reported first-quarter 2024 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.18, driven by a decline in total cost of sales. Adjusted operating income in the Refining segment totaled $1.7 billion, down from $4.1 billion in the year-ago quarter. The figure also missed our estimate of $1.6 billion.
Valero’s total cost of sales declined to $29.8 billion from the year-ago figure of $32.1 billion. The figure is also below our estimate of $30.4 billion, primarily due to lower material costs and operating expenses. The first-quarter capital investment totaled $661 million, of which $563 million was allotted for sustaining the business.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported first-quarter adjusted earnings per share of 33 cents, a penny above the Zacks Consensus Estimate. The bottom line was favourably affected by increased financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s first-quarter DCF was $1.42 billion, up from $1.40 billion a year ago.
As of Mar 31, 2024, Kinder Morgan reported $119 million in cash and cash equivalents. Its long-term debt amounted to $30.1 billion at the quarter-end. For full-year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.