Chevron Corporation (CVX Quick QuoteCVX - Free Report) reported adjusted fourth-quarter earnings per share of $2.06, missing the Zacks Consensus Estimate of $2.19 and well below the year-ago adjusted profit of $3.45. The underperformance stemmed from weaker oil price realizations and a dip in refined product sales margins.

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The company generated revenue of $52.2 billion. The sales figure beat the Zacks Consensus Estimate of $47 billion and increased 10.7% year over year due to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,646 thousand oil-equivalent barrels per day (MBOE/d) came in slightly above the consensus mark of 1,635 MBOE/d.

Importantly, CVX hiked its quarterly cash dividend by 5% to $1.71 per share. The dividend will be paid out on March 19, 2025, to its shareholders of record as of Feb. 14.

Segment Performance

Upstream: Chevron’s production of crude oil and natural gas — at 3,350 MBOE/d (59% liquids) — fell 1.2% year over year. The latest volume statistics primarily reflect higher output from the Permian basin — America's hottest and lowest-cost shale region, partly offset by hurricane-associated production loss in the Gulf of America and asset sale in Canada. 

The U.S. output rose 3% year over year to 1,646 MBOE/d but the company’s international operations (accounting for 51% of the total) dropped 5% to 1,704 MBOE/d. 

Despite volumes declining from last year and lower oil realizations, Chevron’s fourth-quarter 2024 upstream segment profit surged 171.4% to $4.3 billion. This was primarily due to the absence of certain charges from a year ago. 

At $53.12 per barrel, Chevron’s average realized liquids prices in the United States were 9.5% below the year-earlier levels, while prices overseas decreased 9.7% to $67.33 per barrel. As far as natural gas is concerned, the commodity was unchanged in the United States and rose 4.9% internationally.

Downstream: Chevron’s downstream segment recorded a loss of $248 million, plunging from last year’s profit of $1.1 billion. The slip underlined lower product sales margins and higher operating expenses in the United States.

Cash Flows, Capital Expenditure

The company recorded $8.7 billion in cash flow from operations, compared to $12.4 billion the year-ago period due to a drop in earnings and asset retirement obligations. Chevron’s free cash flow for the quarter was $4.4 billion. 

Further, Chevron paid $2.9 billion in dividends and bought back $4.6 billion worth of its shares.

The Zacks Rank #3 (Hold) company spent around $4.3 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $4.4 billion.

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Balance Sheet

As of Dec. 31, the only energy component of the Dow Jones Industrial Average had $6.8 billion in cash and cash equivalents and total debt of $24.5 billion with a debt-to-total capitalization of about 13.9%.

Important Energy Earnings

While we have discussed Chevron’s fourth-quarter results in detail, let’s take a look at some other key oil/energy reports of this season.

Oil service biggie SLB (SLB Quick QuoteSLB - Free Report) reported fourth-quarter 2024 adjusted earnings per share of 92 cents, ahead of the Zacks Consensus Estimate of 90 cents and higher than the year-ago quarter’s profit of 86 cents. The robust numbers reflect broad-based growth and margin expansion, especially in the Middle East and Asia. Additionally, advancements in AI and autonomous operations continue to contribute significantly to SLB’s results.

Along with the quarterly earnings, SLB announced approvals from the board of directors to hike quarterly dividends by 3.6%. The company has also decided on an accelerated share repurchase (“ASR”) program involving the repurchase of $2.3 billion of its common stock. Notably, the ASR is part of SLB’s broader plan to return a minimum of $4 billion to its shareholders in 2025 through dividends and stock repurchases.

Refining major Valero Energy (VLO Quick QuoteVLO - Free Report) reported fourth-quarter 2024 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 13 cents. Total quarterly revenues of $30.8 billion beat the Zacks Consensus Estimate by $27 million. Better-than-expected quarterly results can be primarily attributed to an increase in renewable diesel margins and lower total cost of sales.

VLO’s fourth-quarter capital investment totaled $547 million, of which $452 million was allocated toward sustaining the business. The company had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2024, it had a total debt of $8.1 billion and finance lease obligations of $2.4 billion.  

Energy infrastructure provider Kinder Morgan (KMI Quick QuoteKMI - Free Report) reported fourth-quarter adjusted earnings per share of 32 cents, shy of the Zacks Consensus Estimate of 33 cents. The lower-than-expected quarterly earnings were primarily due to decreased volumes on certain systems, asset divestitures, and lower crude, CO2 and NGL volumes. KMI’s fourth-quarter DCF was $1.3 billion, up from $1.2 billion a year ago.

As of Dec. 31, 2024, Kinder Morgan reported $88 million in cash and cash equivalents. Its long-term debt amounted to $29.8 billion at the quarter-end. For 2025, Kinder Morgan projects a net income of $2.8 billion, up 8% from the 2024 level, and an adjusted EPS of $1.27, up 10%. The company expects to declare dividends of $1.17 per share, up 2% from the prior-year figure. It also anticipates budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous year’s level.