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Chevron's (CVX) Stock Drops After Q4 Earnings, Sales Miss
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Shares of Chevron Corp. (CVX - Free Report) slumped 2.62% in pre-market trade, after the U.S. energy giant reported weak fourth quarter results, dragged down by lower refining margins. The company reported earnings per share of 22 cents, sharply lower than the Zacks Consensus Estimate of 63 cents.
However, the bottom line compared favorably with the year-ago loss of 31 cents amid the recovery in commodity prices and the success of its cost savings initiatives.
Quarterly revenue of $31,497 million missed the Zacks Consensus Estimate of $32,605.8 million but were up 8% year over year.
Chevron becomes the first integrated supermajor in reporting fourth quarter numbers. World’s largest publicly traded oil company ExxonMobil Corp. (XOM - Free Report) and European majors – BP plc (BP - Free Report) and Royal Dutch Shell plc – are scheduled to report over the next few days.
Segment Performance
Upstream: Chevron’s total production of crude oil and natural gas remained essentially unchanged from the year-earlier level at 2,669 thousand oil-equivalent barrels per day (MBOE/d). The U.S. output decreased 5% year over year to 682 MBOE/d, while the company’s international operations (accounting for 74% of the total) was up 2% to 1,987 MBOE/d.
Contribution from volume increases from showpiece projects, shale assets and base business were offset by normal field declines, the effect of asset sales, production entitlement effects in different regions and disruptions in its Nigerian operations.
Despite flat production volumes, Chevron’s upstream segment had a massive turnaround – from a loss of $1,361 million in the year-earlier quarter to a profit of $930 million. This was mainly on account of a leaner cost structure and higher realizations.
Meanwhile, Chevron’s production outlook remains one of the most robust in its peer group, with a number of major initiatives scheduled to come online during the next few years. Major start-ups during 2016 include the Chuandongbei Project in China and the Gorgon natural gas project in Australia.
Downstream: Chevron’s downstream segment achieved earnings of $357 million, 65% lower than the profit of $1,011 million last year. The results were dragged down by lower margins on refined product sales.
Chevron Corporation Price, Consensus and EPS Surprise
Exploration costs nosedived from $1,358 million in the fourth quarter of 2015 to $191 million. The second-largest U.S. oil company by market value after ExxonMobil spent $5,261 million in capital expenditures during the quarter, a considerable decline from the $8,707 million incurred a year ago. Approximately 85% of the total outlays pertained to upstream projects. Full-year spending totaled $22.4 billion as against $34 billion in 2015.
Balance Sheet
As of Dec 31, 2016, the San Ramon, CA-based Zacks Rank #3 (Hold) company had $6,988 million in cash and total debt of $46,126 million, with a debt-to-total capitalization ratio of about 24.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Performance: Shares have risen 12% over the past 3 months, while the Zacks categorized Oil & Gas - International Integrated industry has gained 9%. Over the last 12 months, Chevron stock has risen 36%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Chevron's (CVX) Stock Drops After Q4 Earnings, Sales Miss
Shares of Chevron Corp. (CVX - Free Report) slumped 2.62% in pre-market trade, after the U.S. energy giant reported weak fourth quarter results, dragged down by lower refining margins. The company reported earnings per share of 22 cents, sharply lower than the Zacks Consensus Estimate of 63 cents.
However, the bottom line compared favorably with the year-ago loss of 31 cents amid the recovery in commodity prices and the success of its cost savings initiatives.
Quarterly revenue of $31,497 million missed the Zacks Consensus Estimate of $32,605.8 million but were up 8% year over year.
Chevron becomes the first integrated supermajor in reporting fourth quarter numbers. World’s largest publicly traded oil company ExxonMobil Corp. (XOM - Free Report) and European majors – BP plc (BP - Free Report) and Royal Dutch Shell plc – are scheduled to report over the next few days.
Segment Performance
Upstream: Chevron’s total production of crude oil and natural gas remained essentially unchanged from the year-earlier level at 2,669 thousand oil-equivalent barrels per day (MBOE/d). The U.S. output decreased 5% year over year to 682 MBOE/d, while the company’s international operations (accounting for 74% of the total) was up 2% to 1,987 MBOE/d.
Contribution from volume increases from showpiece projects, shale assets and base business were offset by normal field declines, the effect of asset sales, production entitlement effects in different regions and disruptions in its Nigerian operations.
Despite flat production volumes, Chevron’s upstream segment had a massive turnaround – from a loss of $1,361 million in the year-earlier quarter to a profit of $930 million. This was mainly on account of a leaner cost structure and higher realizations.
Meanwhile, Chevron’s production outlook remains one of the most robust in its peer group, with a number of major initiatives scheduled to come online during the next few years. Major start-ups during 2016 include the Chuandongbei Project in China and the Gorgon natural gas project in Australia.
Downstream: Chevron’s downstream segment achieved earnings of $357 million, 65% lower than the profit of $1,011 million last year. The results were dragged down by lower margins on refined product sales.
Chevron Corporation Price, Consensus and EPS Surprise
Chevron Corporation Price, Consensus and EPS Surprise | Chevron Corporation Quote
Costs & Expenses
Exploration costs nosedived from $1,358 million in the fourth quarter of 2015 to $191 million. The second-largest U.S. oil company by market value after ExxonMobil spent $5,261 million in capital expenditures during the quarter, a considerable decline from the $8,707 million incurred a year ago. Approximately 85% of the total outlays pertained to upstream projects. Full-year spending totaled $22.4 billion as against $34 billion in 2015.
Balance Sheet
As of Dec 31, 2016, the San Ramon, CA-based Zacks Rank #3 (Hold) company had $6,988 million in cash and total debt of $46,126 million, with a debt-to-total capitalization ratio of about 24.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Performance: Shares have risen 12% over the past 3 months, while the Zacks categorized Oil & Gas - International Integrated industry has gained 9%. Over the last 12 months, Chevron stock has risen 36%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>