Chevron Reports $4.4 billion Second Quarter 2024 earnings
Chevron Corporation (NYSE: CVX) reported earnings of $4.4 billion ($2.43 per share – diluted) for second quarter 2024, compared with $6.0 billion ($3.20 per share – diluted) in second quarter 2023. Foreign currency effects decreased earnings by $243 million. Adjusted earnings of $4.7 billion ($2.55 per share – diluted) in second quarter 2024 compared to adjusted earnings of $5.8 billion ($3.08 per share – diluted) in second quarter 2023. See Attachment 4 for a reconciliation of adjusted earnings.
| Earnings & Cash Flow Summary | ||||||||||||||||
| YTD | ||||||||||||||||
| Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | |||||||||||
| Total Earnings / (Loss) | $ MM | $ | 4,434 | $ | 5,501 | $ | 6,010 | $ | 9,935 | $ | 12,584 | |||||
| Upstream | $ MM | $ | 4,470 | $ | 5,239 | $ | 4,936 | $ | 9,709 | $ | 10,097 | |||||
| Downstream | $ MM | $ | 597 | $ | 783 | $ | 1,507 | $ | 1,380 | $ | 3,307 | |||||
| All Other | $ MM | $ | (633 | ) | $ | (521 | ) | $ | (433 | ) | $ | (1,154 | ) | $ | (820 | ) |
| Earnings Per Share – Diluted | $/Share | $ | 2.43 | $ | 2.97 | $ | 3.20 | $ | 5.40 | $ | 6.66 | |||||
| Adjusted Earnings (1) | $ MM | $ | 4,677 | $ | 5,416 | $ | 5,775 | $ | 10,093 | $ | 12,519 | |||||
| Adjusted Earnings Per Share – Diluted (1) | $/Share | $ | 2.55 | $ | 2.93 | $ | 3.08 | $ | 5.48 | $ | 6.63 | |||||
| Cash Flow From Operations (CFFO) | $ B | $ | 6.3 | $ | 6.8 | $ | 6.3 | $ | 13.1 | $ | 13.5 | |||||
| CFFO Excluding Working Capital (1) | $ B | $ | 8.7 | $ | 8.0 | $ | 9.4 | $ | 16.7 | $ | 18.5 | |||||
| (1) See non-GAAP reconciliation in attachments | ||||||||||||||||
“This quarter, we delivered strong production, enhanced our global exploration portfolio and extended our track record of consistent shareholder returns with over $50 billion of distributions in the last two years,” said Mike Wirth, Chevron’s chairman and chief executive officer. “Despite recent operational downtime and softer margins, we remain poised to deliver significant long-term earnings and cash flow growth.”
Chevron’s global production rose by 11 percent this quarter compared to the year-ago period, driven by the successful integration of PDC Energy, Inc. (PDC) and strong execution in the Permian and Denver-Julesburg (DJ) Basins. Chevron also executed agreements in Namibia, Brazil, Equatorial Guinea, and Angola to increase the company’s global exploration acreage position.
| Financial and Business Highlights | ||||||||||||||||
| YTD | ||||||||||||||||
| Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | |||||||||||
| Return on Capital Employed (ROCE) | % | 9.9 | % | 12.4 | % | 13.4 | % | 11.1 | % | 14.1 | % | |||||
| Capital Expenditures (Capex) | $ B | $ | 4.0 | $ | 4.1 | $ | 3.8 | $ | 8.1 | $ | 6.8 | |||||
| Affiliate Capex | $ B | $ | 0.6 | $ | 0.6 | $ | 1.0 | $ | 1.2 | $ | 1.8 | |||||
| Free Cash Flow (1) | $ B | $ | 2.3 | $ | 2.7 | $ | 2.5 | $ | 5.1 | $ | 6.7 | |||||
| Free Cash Flow ex. working capital (1) | $ B | $ | 4.8 | $ | 3.9 | $ | 5.7 | $ | 8.6 | $ | 11.7 | |||||
| Debt Ratio (end of period) | % | 12.7 | % | 12.0 | % | 12.0 | % | 12.7 | % | 12.0 | % | |||||
| Net Debt Ratio (1) (end of period) | % | 10.7 | % | 8.8 | % | 7.0 | % | 10.7 | % | 7.0 | % | |||||
| Net Oil-Equivalent Production | MBOED | 3,292 | 3,346 | 2,959 | 3,319 | 2,968 | ||||||||||
| (1) See non-GAAP reconciliation in attachments | ||||||||||||||||
Financial Highlights
- Second quarter 2024 earnings decreased compared to last year primarily due to lower margins on refined product sales, the absence of prior year favorable tax items and negative foreign currency effects.
- Worldwide net oil-equivalent production was up 11 percent from a year ago primarily due to the PDC acquisition and strong performance in the Permian and DJ Basins in the U.S., partly offset by downtime in Australia.
- Capex in the second quarter of 2024 was up from last year largely due to higher investments in upstream, including post-acquisition spend on legacy PDC assets.
- Cash flow from operations was in line with the year ago period mainly as lower earnings were partially offset by higher dividends from equity affiliates and lower working capital.
- The company returned $6.0 billion of cash to shareholders during the quarter, including dividends of $3.0 billion and share repurchases of $3.0 billion. This is the ninth straight quarter of over $5 billion cash returned to shareholders.
- The company’s Board of Directors declared a quarterly dividend of one dollar and sixty-three cents ($1.63) per share, payable September 10, 2024, to all holders of common stock as shown on the transfer records of the corporation at the close of business on August 19, 2024.
Business Highlights and Milestones
- Completed turnaround on Second Generation Injection plant and progressed start-up of the Wellhead Pressure Management Project with three pressure boost facility compressors online and eight metering stations converted at the company’s affiliate Tengizchevroil.
- Signed agreement to acquire 80 percent working interest in Petroleum Exploration License 82 in the Walvis Basin, further expanding the company’s frontier exploration acreage position offshore Namibia.
- Added frontier exploration acreage positions in the deepwater lower Congo Basin in Angola.
- Signed agreements to acquire two exploration blocks offshore Bioko Island in Equatorial Guinea.
- Secured 15 exploration blocks in the South Santos and Pelotas Basins in Brazil.
- Tested use of unmanned aircraft for detection of spills and leaks at the company’s upstream and pipeline facilities in California pursuant to a first-of-its-kind waiver from the U.S. Federal Aviation Administration.
| Segment Highlights | ||||||||||||||||
| Upstream | ||||||||||||||||
| YTD | ||||||||||||||||
| U.S. Upstream | Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | ||||||||||
| Earnings / (Loss) | $ MM | $ | 2,161 | $ | 2,075 | $ | 1,640 | $ | 4,236 | $ | 3,421 | |||||
| Net Oil-Equivalent Production | MBOED | 1,572 | 1,573 | 1,219 | 1,573 | 1,193 | ||||||||||
| Liquids Production | MBD | 1,132 | 1,130 | 916 | 1,131 | 896 | ||||||||||
| Natural Gas Production | MMCFD | 2,643 | 2,657 | 1,817 | 2,650 | 1,780 | ||||||||||
| Liquids Realization | $/BBL | $ | 59.85 | $ | 57.37 | $ | 56.29 | $ | 58.61 | $ | 57.64 | |||||
| Natural Gas Realization | $/MCF | $ | 0.76 | $ | 1.24 | $ | 1.23 | $ | 1.00 | $ | 1.88 | |||||
- U.S. upstream earnings were higher than the year-ago period primarily due to higher sales volumes and realizations, partly offset by higher depreciation, depletion and amortization and higher operating expenses, mainly from higher production.
- U.S. net oil-equivalent production was up 353,000 barrels per day from a year earlier primarily due to the successful integration of PDC and record high production in the Permian Basin.
| YTD | ||||||||||||||||
| International Upstream | Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | ||||||||||
| Earnings / (Loss) (1) | $ MM | $ | 2,309 | $ | 3,164 | $ | 3,296 | $ | 5,473 | $ | 6,676 | |||||
| Net Oil-Equivalent Production | MBOED | 1,720 | 1,773 | 1,740 | 1,746 | 1,775 | ||||||||||
| Liquids Production | MBD | 823 | 838 | 827 | 831 | 838 | ||||||||||
| Natural Gas Production | MMCFD | 5,378 | 5,610 | 5,478 | 5,494 | 5,624 | ||||||||||
| Liquids Realization | $/BBL | $ | 74.92 | $ | 72.52 | $ | 68.06 | $ | 73.73 | $ | 68.48 | |||||
| Natural Gas Realization | $/MCF | $ | 6.86 | $ | 7.25 | $ | 7.50 | $ | 7.06 | $ | 8.25 | |||||
| (1) Includes foreign currency effects | $ MM | $ | (237 | ) | $ | 22 | $ | 10 | $ | (215 | ) | $ | (46 | ) | ||
- International upstream earnings were lower than a year ago primarily due to the absence of prior year favorable tax effects, lower sales volumes, unfavorable foreign currency effects and lower natural gas realizations, partly offset by higher liquids realizations.
- Net oil-equivalent production during the quarter was down 20,000 barrels per day from a year earlier primarily due to downtime in Australia and exit from Myanmar, partly offset by higher production in Canada, mainly due to the absence of wildfire related shutdowns.
| Downstream | ||||||||||||||||
| YTD | ||||||||||||||||
| U.S. Downstream | Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | ||||||||||
| Earnings / (Loss) | $ MM | $ | 280 | $ | 453 | $ | 1,081 | $ | 733 | $ | 2,058 | |||||
| Refinery Crude Unit Inputs | MBD | 900 | 878 | 985 | 889 | 958 | ||||||||||
| Refined Product Sales | MBD | 1,327 | 1,248 | 1,295 | 1,288 | 1,274 | ||||||||||
- U.S. downstream earnings were lower compared to last year primarily due to lower margins on refined product sales and higher operating expenses.
- Refinery crude unit inputs, including crude oil and other inputs, decreased 9 percent from the year-ago period primarily due to downtime at the El Segundo, California refinery.
- Refined product sales increased 2 percent compared to the year-ago period.
| YTD | ||||||||||||||||
| International Downstream | Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | ||||||||||
| Earnings / (Loss) (1) | $ MM | $ | 317 | $ | 330 | $ | 426 | $ | 647 | $ | 1,249 | |||||
| Refinery Crude Unit Inputs | MBD | 650 | 651 | 634 | 651 | 637 | ||||||||||
| Refined Product Sales | MBD | 1,485 | 1,430 | 1,453 | 1,457 | 1,456 | ||||||||||
| (1) Includes foreign currency effects | $ MM | $ | (1 | ) | $ | 56 | $ | 4 | $ | 55 | $ | 22 | ||||
- International downstream earnings were lower compared to a year ago primarily due to lower margins on refined product sales.
- Refinery crude unit inputs, including crude oil and other inputs, increased 3 percent from the year-ago period primarily due to lower turnaround activity at the GS Caltex affiliate in South Korea.
- Refined product sales increased 2 percent from the year-ago period.
| All Other | ||||||||||||||||
| YTD | ||||||||||||||||
| All Other | Unit | 2Q 2024 | 1Q 2024 | 2Q 2023 | 2Q 2024 | 2Q 2023 | ||||||||||
| Net charges (1) | $ MM | $ | (633 | ) | $ | (521 | ) | $ | (433 | ) | $ | (1,154 | ) | $ | (820 | ) |
| (1) Includes foreign currency effects | $ MM | $ | (5 | ) | $ | 7 | $ | (4 | ) | $ | 2 | $ | (6 | ) | ||
All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies. Net charges increased compared to a year ago primarily due to unfavorable tax items and lower interest income
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