Chevron (CVX) First Quarter 2024 Earnings Report

Gas pumps are seen at a Chevron gas station in Orlando.

Paul Hennessy | SOPA images | Light rocket | Getty Images

Chevron It beat earnings expectations on Friday, but profits fell from the same period a year ago as its refineries and international gas operations faced headwinds.

The oil group's net profit fell 16% to $5.5 billion, or 2.97 per share, compared to the same quarter a year ago. Excluding one-time items, Chevron reported earnings of $2.93 per share, which beat Wall Street estimates.

Shares of Chevron fell less than 1% in premarket trading on the news.

The company attributed the declining profits to lower sales margins at its refineries and lower natural gas prices, which are eroding profits in international production.

Here's what Chevron reported for the first quarter, compared to what Wall Street expected, based on a survey of analysts by LSEG:

  • Earnings per share: $2.93 adjusted versus $2.87 expected
  • Revenue: $48.72 billion vs. $50.66 billion expected

Oil prices are up more than 15% this year and gasoline futures are up 31%, but the rally has done little to boost profits given problems elsewhere in the energy sector.

Natural gas prices have fallen by 35% this year due to a supply surplus. Retail and distribution margins for gasoline, or the difference between retail and refinery prices, were also lower in February and March than the same period last year, according to the Energy Information Administration.

Chevron said it is confident that its upcoming acquisition of Hess Corp. will be completed in 2024, despite a challenge from Exxon in the arbitration court over rights in a joint exploitation agreement for oil assets in Guyana.

Chevron said it expects shareholder voting and the Federal Trade Commission's request for information on the deal to be completed in the second quarter.

Chevron's US refining operations saw profits fall by more than half to $453 million. International refining profits took an even bigger hit, falling nearly 60% to $330 million.

The US oil and gas sector posted profits of approximately $2 billion, up 16% from the same period last year due to higher sales volume. Chevron produced 1.57 million barrels of oil and gas daily in the U.S. this quarter, up 35%, or 406,000 barrels per day, from a year ago.

The oil company attributed the production gains to strong production in the Permian and Denver-Julesburg basins.

International oil and gas revenues fell 6% to $3.2 billion, while production fell 39,000 barrels per day to 1.77 million barrels per day due to maintenance work in Nigeria and oil field decline. Still, total global production rose 12% to 3.35 million barrels per day – the highest first-quarter production ever.

Capital expenditures rose to $4.1 billion, a 37% increase from the $3 billion spent last year. The higher expenses included PDC Energy's oil and gas production and legacy assets following the completion of the company's acquisition last August.

Chevron still paid $3 billion in dividends and repurchased nearly $3 billion of stock in the quarter, although its return on capital of 12.4% was lower than the 14.6% in the first quarter of last year.

Read Chevron's full earnings release here.

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