Chevron Corp recently released their third-quarter results, causing their shares to trade higher. The company reported revenues and other income of $50.669 billion, surpassing the consensus of $48.986 billion. Their worldwide net oil-equivalent production increased by 7% year over year to 3,364 MBOED, with a boost from the acquisition of PDC Energy and strong production in the Permian Basin.
Adjusted net earnings came in at $4.53 billion, with adjusted EPS at $2.51, which was lower than $3.05 from a year ago but still exceeded the consensus of $2.43. However, third-quarter earnings saw a decline due to reduced margins on refined product sales, the absence of favorable tax items from the previous year, and lower realizations.
In terms of earnings, U.S. Upstream reported earnings of $1.946 billion, a decrease from $2.074 billion a year ago. International upstream earnings also fell to $2.643 billion from $3.681 billion due to various factors.
CVX managed to return $7.7 billion of cash to shareholders during the quarter, including dividends of $2.9 billion and share repurchases of $4.7 billion. The company also declared a quarterly dividend of $1.63 per share, payable on December 10.
Chevron’s chairman and CEO, Mike Wirth, highlighted the start-up of key projects and emphasized the company’s efforts in cost reduction. Chevron aims to achieve $2-3 billion of structural cost reductions by the end of 2026.
Additionally, Chevron’s subsidiary recently signed a deal to sell a stake in several projects and assets to Canadian Natural Resources for $6.5 billion in cash. This sale is part of Chevron’s strategy to divest $10 billion-$15 billion in assets by 2028 to streamline its global energy portfolio.
Investors looking to gain exposure to Chevron can consider options like EA Series Trust Strive U.S. Energy ETF DRLL and Westwood Salient Enhanced Energy Income ETF WEEI.
As of the last check, CVX shares were up 2.07% at $151.90 premarket. This positive price action reflects the market’s response to Chevron’s performance.
In conclusion, Chevron’s third-quarter results demonstrate both challenges and opportunities for the company. With a focus on production growth, cost reduction, and strategic asset management, Chevron is navigating the complexities of the current energy landscape.
