Energy, Automobile, EV, Renewable News | Chevron Reports earnings of $11.6 billion; adjusted earnings of $11.4 billion in Second Quarter 2022

Chevron Reports earnings of $11.6 billion; adjusted earnings of $11.4 billion in Second Quarter 2022

July 29, 2022

Chevron Corporation (NYSE: CVX) today reported earnings of $11.6 billion ($5.95 per share – diluted) for second quarter 2022, compared with $3.1 billion ($1.60 per share – diluted) in second quarter 2021. Included in the current quarter were charges associated with an early contract termination of $600 million, pension settlement costs of $11 million, and a gain on asset sales of $200 million. Foreign currency effects increased earnings by $668 million. Adjusted earnings of $11.4 billion ($5.82 per share – diluted) in second quarter 2022 compares to adjusted earnings of $3.3 billion ($1.71 per share – diluted) in second quarter 2021.

Sales and other operating revenues in second quarter 2022 were $65 billion, compared to $36 billion in the year-ago period.

Earnings Summary

	Three MonthsEnded June 30		Six Months Ended June 30
Millions of dollars		2022	2021	2022		2021
Earnings by business segment
Upstream	$	8,558		$	3,178		$	15,492		$	5,528
Downstream		3,523			839			3,854			844
All Other		(459)			(935)			(1,465	)		(1,913	)
Total ⁽¹⁾⁽²⁾	$	11,622		$	3,082		$	17,881		$	4,459
⁽¹⁾ Includes foreign currency effects	$	668		$	43		$	450		$	41
⁽²⁾ Net income attributable to Chevron Corporation (See Attachment 1)

“Second quarter financial performance improved as we delivered a return on capital employed of 26 percent,” said Mike Wirth, Chevron’s chairman and chief executive officer. The company also strengthened its balance sheet, lowering its debt ratio to under 15 percent, and increased the top end of its annual share repurchase guidance range to $15 billion.

“We more than doubled investment compared to last year to grow both traditional and new energy business lines,” Wirth added. “With Permian production more than 15 percent higher than a year ago and now as one of the leading renewable fuel producers in the United States, Chevron is increasing energy supplies to help meet the challenges facing global markets,” Wirth concluded.

This investment includes total capital and exploratory and acquisition-related expenditures as Chevron closed its acquisition of Renewable Energy Group, Inc. and completed the formation of a renewable fuels joint venture with Bunge North America, Inc. Also during the second quarter, the company sanctioned the Ballymore project in the deepwater U.S. Gulf of Mexico, which is expected to require a gross investment of approximately $1.6 billion. The field is planned to be produced through an existing facility with allocated capacity of 75,000 barrels of crude oil per day.

The company also advanced its carbon capture and storage (CCS) business this quarter by launching a CCS project aimed at reducing the carbon intensity of its upstream operations in California and forming an expanded joint venture to develop the Bayou Bend CCS hub in Texas, with the goal of it becoming one of the first offshore CCS projects in the United States.

Further, leveraging the company’s growing U.S. natural gas production and its global liquefied natural gas (LNG) value chain, Chevron signed agreements to export 4 million tonnes per year of LNG out of the U.S. Gulf Coast, commencing in 2026.

UPSTREAM

Worldwide net oil-equivalent production was 2.90 million barrels per day in second quarter 2022. International production decreased 13 percent primarily due to the end of concessions in Thailand and Indonesia, while U.S. production increased 3 percent compared to the same period a year ago mainly in the Permian Basin.

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