[Editor’s note: This story was updated at 9:55 a.m. CST Feb. 1.]
Chevron Corp. (NYSE: CVX) on Feb. 1 reported quarterly earnings that topped analysts’ estimates on higher prices and production, sending shares higher in morning trading.
Results for the San Ramon, Calif.-based company reflected a 12.5% increase in oil and gas production as net output rose to 3.08 million barrels per day (bbl/d). Prices paid for its crude were $59 a barrel in the quarter, up from $57 a year earlier, the company said.
It was “a good beat overall,” said Muhammed Ghulam, an analyst at Raymond James. “Permian production growth remained strong, up 12% compared to the prior quarter and 84% year-over-year,” he said.
RELATED: Chevron Uses Permian Basin War Chest To Boost Production
The Trump administration last month added new sanctions against imports from Venezuela, where Chevron is the last major U.S. oil company with production operations. Fourth-quarter results show net production by its affiliate rose slightly to 24,000 bbl/d, from 23,000 bbl/d a year earlier.
Chevron’s cash flow from operations rose nearly 51% to $30.6 billion, reflecting the higher output and expense reduction. Investors have been pushing oil companies to restrain spending and increase returns to shareholders.
CEO Michael Wirth forecast oil-equivalent production this year to grow between 4% and 7%, excluding asset sales, compared with 2018.
Chevron reported a profit of $3.7 billion, or $1.95 per share, compared with $3.11 billion, or $1.64 a share a year earlier. Analysts’ mean forecast was $1.87 a share, according to Refinitiv.
Business unit results compared to the year-ago period were lower because of the impact of U.S. tax reform a year ago. Profit from oil and gas exploration was $3.29 billion compared with $5.29 billion a year earlier; refining profit fell to $256 million compared with $1.2 billion a year ago.
The company this week announced it would raise its dividend to $1.19 a share from $1.12 per share. It also agreed to pay $350 million to buy a refinery in Pasadena, Texas, from Brazilian state oil company Petrobras, confirming a Reuters report from Monday. The acquisition is intended to process oil flowing from its West Texas shale fields in the Permian Basin.
Shares were up 3.2% at $118.30, helping lift the Dow Jones Industrial Average.
Chevron officials are expected to discuss results on a conference call on Feb. 1.
Recommended Reading
Treasury’s New Hydrogen Tax Credit Regs Open Door to NatGas Producers
2025-01-03 - The U.S. Treasury Department’s long awaited 45V hydrogen tax credit will enable “pathways for hydrogen produced using both electricity and methane” as well as nuclear, the department said Jan. 3.
BP Flows First Gas from Greater Tortue LNG Project
2025-01-03 - Once fully commissioned, Phase 1 of the Greater Tortue Ahmeyim LNG project led by operator BP is expected to produce approximately 2.3 MMtonne of LNG annually.
Former IPAA Chair Steven Hinchman Dies at 66
2025-01-03 - During his time with IPAA, Steven Hinchman founded Scala Energy and became its president and CEO.
NatGas in Storage Shows YOY Drop for First Time Since 2022
2025-01-03 - Despite a drop in gas in storage, prices took a hit from forecasts of warmer-than-expected weather.
Biden Blocks Japan’s Nippon Steel from Buying US Steel for $14.9B
2025-01-03 - President Biden cited national security concerns in his decision, but Nippon Steel and U.S. Steel said the decision ignored the law and was motivated by politics.