Investing
Chevron Q3 earnings slide amid lower upstream realizations
© Reuters.
Chevron Corporation (NYSE:)’s Q3 2023 earnings have taken a hit, with the company reporting a significant decrease in earnings per share from $5.78 in Q3 2022 to $3.48 in the same period this year, resulting in a 2% pre-market trade shares drop. The downturn is attributed to lower upstream realizations, reduced margins on refined product sales, international downstream weakness, and maintenance operations at the Richmond refinery.
Despite these challenges, Chevron managed to achieve a new U.S net oil-equivalent production record with a 20% increase due to the acquisition of PDC Energy (NASDAQ:) that added 179,000 oil-equivalent barrels per day. This achievement was supplemented by net production increases in the Permian Basin. However, international net oil-equivalent production decreased due to turnarounds, shutdowns, and normal field declines.
In terms of downstream performance, U.S. margins and fuel sales rose while international downstream earnings fell mainly due to lower margins on refined product sales. This comes as Chevron’s Q3 2023 earnings plummeted to $3.05 per share from the previous year’s $5.56, missing the projected $3.70 due to lower upstream realizations and shrinking margins on refined product sales.
The decline in earnings has also affected Chevron’s upstream profits which saw a 38% YoY decrease to $5.8 billion. Sales fell by 18.3% YoY to $51.9 billion due to declining oil prices but exceeded the expected $51.4 billion.
In light of these results, Chevron declared a quarterly dividend of $1.51 per share, set for December 11 payment to shareholders on record by November 17. Analysts maintain a Moderate Buy consensus rating for the stock with seven Buys and Holds each, and an average price target of $189.71, suggesting a potential upside of 22.6%.
The disappointing earnings report was revealed following Chevron’s announcement of a $53 billion all-stock acquisition of Hess Corporation (NYSE:), a move that is expected to impact the company’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World