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Chevron (CVX) Beats Q1 Earnings on Refining Unit Strength
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Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.55, ahead of the Zacks Consensus Estimate as well as the year-earlier quarter’s adjusted profit of $3.36 per share.
The outperformance could be attributed to higher-than-expected bottom line results in the company’s downstream segment. The unit’s profit of $1.8 billion came 15.5% above the consensus mark.
The company generated revenue of $50.8 billion. The sales figure beat the Zacks Consensus Estimate of $47.9 billion but decreased 6.6% year over year due to lower production and oil prices.
Chevron Corporation Price, Consensus and EPS Surprise
Upstream: Chevron’s production of crude oil and natural gas — at 2,979 MBOE/d (58% liquids) — dropped 2.6% year over year. The latest volume statistics reflect the Eagle Ford asset sale and the end of the Erawan concession in Thailand.
The U.S. output was down 1.4% year over year to 1,167 MBOE/d, while the company’s international operations (accounting for 61% of the total) fell 3.4% to 1,812 MBOE/d.
With volumes declining from last year, Chevron’s upstream segment recorded a profit of $5.2 billion in the first quarter of 2023, 25.6% lower than the $6.9 billion earned in the year-ago period.
This was also on account of a drop in oil prices. At $59 per barrel, Chevron’s average realized liquids prices in the U.S. were $18 below the year-earlier levels while prices overseas slumped 25.8% to $69 per barrel.
Downstream: Chevron’s downstream segment recorded a profit of $1.8 billion, surging from last year’s figure of $331 million. The jump underlined higher product sales margins, strong jet fuel demand following the continued easing of pandemic restrictions, and contribution from Renewable Energy group acquisition.
Cash Flows, Capital Expenditure
The company recorded $7.2 billion in cash flow from operations, compared to $8.1 billion a year ago. The decreasing cash flow could be attributed to weaker crude price realizations in the upstream business. Importantly, Chevron’s free cash flow for the quarter was $4.2 billion.
Further, Chevron paid $2.9 billion in dividends and bought back $3.8 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $3 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $2 billion.
As of Dec 31, the San Ramon, CA-based company had $15.7 billion in cash and cash equivalents and total debt of $23.2 billion with a debt-to-total capitalization of about 12.7%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced first-quarter 2023 earnings of 63 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 61 cents. SLB recorded total revenues of $7.7 billion, outpacing the Zacks Consensus Estimate by 3.2%.
SLB’s strong quarterly earnings resulted from higher stimulation services across all onshore and offshore areas. The company foresees strong activities across the globe this year. In the Northern Hemisphere, SLB expects a seasonal recovery in the second quarter with capital expansion developments in the Middle East.
Another oil service biggie Baker Hughes (BKR - Free Report) reported first-quarter adjusted earnings of 28 cents per share, brushing past the Zacks Consensus Estimate of 26 cents. The outperformance reflects higher contributions from BKR’s Oilfield Services and Equipment, and Industrial & Energy Technology business units.
Baker Hughes’ total orders from all business segments in first-quarter 2023 amounted to $7.6 billion, up 12% year over year. The company generated a free cash flow of $197 million in the reported quarter against a negative free cash flow of $105 million in the year-ago period.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported first-quarter adjusted earnings per share of 30 cents, a penny ahead of the Zacks Consensus Estimate. The bottom line was primarily aided by higher gathering and transport volumes. KMI’s board approved a quarterly cash dividend of 28.25 cents per share, indicating a 1.8% increase from the last payout.
As of Mar 31, 2023, Kinder Morgan reported $416 million in cash and cash equivalents. The company’s long-term debt amounted to $29.1 billion at the quarter-end. For 2023, KMI projects a net income of $2.5 billion and a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.
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Chevron (CVX) Beats Q1 Earnings on Refining Unit Strength
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.55, ahead of the Zacks Consensus Estimate as well as the year-earlier quarter’s adjusted profit of $3.36 per share.
The outperformance could be attributed to higher-than-expected bottom line results in the company’s downstream segment. The unit’s profit of $1.8 billion came 15.5% above the consensus mark.
The company generated revenue of $50.8 billion. The sales figure beat the Zacks Consensus Estimate of $47.9 billion but decreased 6.6% year over year due to lower production and oil prices.
Chevron Corporation Price, Consensus and EPS Surprise
Chevron Corporation price-consensus-eps-surprise-chart | Chevron Corporation Quote
Segment Performance
Upstream: Chevron’s production of crude oil and natural gas — at 2,979 MBOE/d (58% liquids) — dropped 2.6% year over year. The latest volume statistics reflect the Eagle Ford asset sale and the end of the Erawan concession in Thailand.
The U.S. output was down 1.4% year over year to 1,167 MBOE/d, while the company’s international operations (accounting for 61% of the total) fell 3.4% to 1,812 MBOE/d.
With volumes declining from last year, Chevron’s upstream segment recorded a profit of $5.2 billion in the first quarter of 2023, 25.6% lower than the $6.9 billion earned in the year-ago period.
This was also on account of a drop in oil prices. At $59 per barrel, Chevron’s average realized liquids prices in the U.S. were $18 below the year-earlier levels while prices overseas slumped 25.8% to $69 per barrel.
Downstream: Chevron’s downstream segment recorded a profit of $1.8 billion, surging from last year’s figure of $331 million. The jump underlined higher product sales margins, strong jet fuel demand following the continued easing of pandemic restrictions, and contribution from Renewable Energy group acquisition.
Cash Flows, Capital Expenditure
The company recorded $7.2 billion in cash flow from operations, compared to $8.1 billion a year ago. The decreasing cash flow could be attributed to weaker crude price realizations in the upstream business. Importantly, Chevron’s free cash flow for the quarter was $4.2 billion.
Further, Chevron paid $2.9 billion in dividends and bought back $3.8 billion worth of its shares.
The Zacks Rank #3 (Hold) company spent around $3 billion in capital and exploratory expenditures during the quarter, compared to the year-ago period’s $2 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Balance Sheet
As of Dec 31, the San Ramon, CA-based company had $15.7 billion in cash and cash equivalents and total debt of $23.2 billion with a debt-to-total capitalization of about 12.7%.
Important Energy Earnings So Far
Let’s take a look at some key energy reports of this season.
SLB (SLB - Free Report) , the largest oilfield contractor, announced first-quarter 2023 earnings of 63 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 61 cents. SLB recorded total revenues of $7.7 billion, outpacing the Zacks Consensus Estimate by 3.2%.
SLB’s strong quarterly earnings resulted from higher stimulation services across all onshore and offshore areas. The company foresees strong activities across the globe this year. In the Northern Hemisphere, SLB expects a seasonal recovery in the second quarter with capital expansion developments in the Middle East.
Another oil service biggie Baker Hughes (BKR - Free Report) reported first-quarter adjusted earnings of 28 cents per share, brushing past the Zacks Consensus Estimate of 26 cents. The outperformance reflects higher contributions from BKR’s Oilfield Services and Equipment, and Industrial & Energy Technology business units.
Baker Hughes’ total orders from all business segments in first-quarter 2023 amounted to $7.6 billion, up 12% year over year. The company generated a free cash flow of $197 million in the reported quarter against a negative free cash flow of $105 million in the year-ago period.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported first-quarter adjusted earnings per share of 30 cents, a penny ahead of the Zacks Consensus Estimate. The bottom line was primarily aided by higher gathering and transport volumes. KMI’s board approved a quarterly cash dividend of 28.25 cents per share, indicating a 1.8% increase from the last payout.
As of Mar 31, 2023, Kinder Morgan reported $416 million in cash and cash equivalents. The company’s long-term debt amounted to $29.1 billion at the quarter-end. For 2023, KMI projects a net income of $2.5 billion and a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.