Chevron tops Q1 estimates as refining profits soar
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Chevron (NYSE:CVX) -0.5% pre-market Friday after edging past Wall Street estimates for Q1 adjusted earnings and revenues, as earnings from refining helped offset declines in energy prices as well as oil and gas production.
Q1 net income rose to $6.57B, or $3.46/share, from $6.26B, or $3.22/share, in the year-earlier quarter and from $6.35B, or $3.33/share in Q4 2022; total revenues fell 6.6% Y/Y to $50.79B.
Q1 net production fell 3% Y/Y to 2.98M boe/day, as international production declined with the end of the Erawan concession in Thailand, although production in the Permian Basin increased 4%.
Q1 earnings in the U.S. Upstream segment fell 45% Y/Y to $1.78B, primarily due to lower realizations, while sliding 8.5% to $3.38B in International Upstream, due to lower realizations, lower sales volumes, and higher tax charges related to changes in the U.K.'s energy profits levy.
Q1 earnings in the U.S. Downstream earnings doubled from a year ago to $977M, primarily due to higher margins on refined product sales, while International Downstream swung to a $823M profit from a $155M year-ago loss, due to higher margins on refined product sales.
Capital spending jumped 55% from a year ago to $3B, primarily due to higher investment in U.S. projects.
Chevron (CVX) ended the quarter with $15.8B in cash, down 12% from a year ago but ~$10B above what it needs run the business, CFO Pierre Breber told Reuters.
"The intent over time is that cash will be returned to shareholders in a steady way," Breber said, adding that the company would only pursue deals that benefit shareholders.
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