Chevron Reports $4.5 Billion Earnings In Third Quarter 2024

Chevron Corporation (NYSE: CVX) reported earnings of $4.5 billion ($2.48 per share – diluted) for third quarter 2024, compared with $6.5 billion ($3.48 per share – diluted) in third quarter 2023.

Foreign currency effects decreased earnings by $44 million. Adjusted earnings of $4.5 billion ($2.51 per share – diluted) in third quarter 2024 compared to adjusted earnings of $5.7 billion ($3.05 per share – diluted) in third quarter 2023. See Attachment 4 for a reconciliation of adjusted earnings.

“We delivered strong financial and operational results, started up key projects in the U.S. Gulf of Mexico and returned record cash to shareholders this quarter,” said Mike Wirth, Chevron’s chairman and chief executive officer.

Worldwide net oil-equivalent production increased 7 percent from last year as U.S. and Permian Basin production set another quarterly record.

Chevron started up key projects in Anchor, Jack/St. Malo and Tahiti fields this quarter.

These projects, combined with additional project start-ups through 2025, are expected to grow U.S. Gulf of Mexico production to 300,000 barrels of net oil-equivalent per day by 2026.

“We are also taking steps to optimize our portfolio and reduce operating costs to deliver superior long-term value to shareholders,” Wirth concluded.

The company expects to close asset sales in Canada, Congo and Alaska in fourth quarter 2024, as part of its plan to divest $10-15 billion of assets by 2028.

Additionally, cost reduction efforts are underway, and the company is targeting $2-3 billion of structural cost reductions from 2024 by the end of 2026.

Financial Highlights

•Third quarter 2024 earnings decreased compared to last year primarily due to lower margins on refined product sales, lower realizations and the absence of prior year favorable tax items.

•Worldwide net oil-equivalent production was up 7 percent from a year ago primarily due to record production in the Permian Basin and the acquisition of PDC Energy, Inc. (PDC).

•Capex in third quarter 2024 was down from last year largely due to the absence of the third quarter 2023 acquisition of a majority stake in ACES Delta, LLC.

•Cash flow from operations was in line with the year ago period mainly as lower earnings and a one-time payment for ceased operations were offset by higher dividends from equity affiliates and favorable working capital effects.

•The company returned a record $7.7 billion of cash to shareholders during the quarter, including share repurchases of $4.7 billion and dividends of $2.9 billion.

•The company’s Board of Directors declared a quarterly dividend of one dollar and sixty-three cents ($1.63) per share, payable December 10, 2024, to all holders of common stock as shown on the transfer records of the corporation at the close of business on November 18, 2024.

Business Highlights and Milestones

• Started production at the Anchor project in the U.S. Gulf of Mexico, marking successful delivery of an industry-first high-pressure deepwater technology.

•Began water injection operations to boost production from company operated Jack/St. Malo and Tahiti fields in the U.S. Gulf of Mexico.

•Achieved start-up of the final pressure boost compressor at the Wellhead Pressure Management Project at the company’s affiliate Tengizchevroil (TCO) in Kazakhstan.

•Completed major turnarounds at TCO’s Complex Technology Line (KTL-1) and Gorgon’s Train 2 plants ahead of schedule.

•Announced a $6.5 billion sale of the company’s interest in the Athabasca Oil Sands Project and Duvernay shale assets in Canada that is expected to close in fourth quarter 2024.

*Cleared Federal Trade Commission antitrust review of the company’s pending merger with Hess Corporation, satisfying a key closing condition for the transaction.

•Realized approximately 30 percent greater-than-projected capital expenditure and cost synergies since acquiring PDC. These assets, along with our other assets in Colorado, are among the lowest carbon intensity in the industry.

•Successfully extended the Meji field offshore Nigeria with a near-field discovery.

•Announced the establishment of an engineering and innovation center in India to provide technical and digital solutions for the enterprise.

•Received an offshore Australia greenhouse gas assessment permit, covering an area of approximately 8,467 km2, to assess future CO2 storage.

Segment Highlights

Upstream

•U.S. upstream earnings were slightly lower than the year-ago period as lower realizations and higher depreciation, depletion and amortization, mainly from higher production, were nearly offset by higher sales volumes and lower operating expenses.

•U.S. net oil-equivalent production was up 198,000 barrels per day from a year earlier and set a new quarterly record, primarily due to record high production in the Permian Basin and the acquisition of PDC, partly offset by hurricane impacts in the U.S. Gulf of Mexico that reduced production by 17,000 barrels per day.

International Upstream

•International upstream earnings were lower than a year ago primarily due to the absence of prior year favorable tax effects and absence of prior year favorable foreign currency effects.

•Net oil-equivalent production during the quarter was up 20,000 barrels per day from a year earlier primarily due to entitlement effects.

Downstream

•U.S. downstream earnings were lower compared to last year primarily due to lower margins on refined product sales, partly offset by higher earnings from the 50 percent- owned affiliate, CPChem.

•Refinery crude unit inputs, including crude oil and other inputs, increased 2 percent from the year-ago period primarily due to the absence of planned turnaround at the Richmond, California refinery, partly offset by hurricane impacts at the Pasadena, Texas refinery.

•Refined product sales increased 1 percent compared to the year-ago period primarily due to higher demand for gasoline.

International Downstream

•International downstream earnings were higher compared to a year ago primarily due to higher margins on refined product sales, partly offset by higher operating expenses and unfavorable foreign currency effects.

•Refinery crude unit inputs, including crude oil and other inputs, decreased one percent from the year-ago period primarily due to higher planned turnarounds.

•Refined product sales increased 5 percent from the year-ago period primarily due to higher demand for gasoline and jet fuel.

All Other

All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.

•Net charges decreased compared to a year ago primarily due to the absence of prior year unfavorable foreign currency effects, partly offset by higher interest expense and lower interest income.

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress.

Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry.

We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com.