Chevron
corporation
posted a second-quarter performance update on Sunday that came in better than expected ahead of Big Oil’s earnings announcement this week.
Adjusted earnings of $3.08 per share beat consensus of $2.97 per share as tracked by
That’s about 47% down from the second quarter of last year and a profit of $3.55 per share in the first quarter of 2023.
The main reason Chevron’s profits have fallen is that oil prices have fallen sharply since last year, when they spiked due to Russia’s invasion of Ukraine.
“We are delivering great shareholder value regardless of the commodity price environment,” CEO Mike Wirth said in an interview with Barron’s. “We are at lower prices than a year ago, but higher than two and three years ago. We have to be prepared for high and low prices.
“We have a company built to last through the cycles,” he added. “At (oil prices) below $50, we cover all of our dividends and all of our capital expenditures.”
Announcement – Scroll to Continue
Chevron’s independent directors gave Wirth a vote of confidence, waiving the company’s mandatory retirement age of 65. He will turn 63 at the end of this year.
The company also announced that its chief financial officer, Pierre Breber, is retiring after 35 years with the company. Eimear Bonner, CTO, will succeed him beginning in March 2024.
In a statement, Wirth thanked Breber for his contributions and welcomed Bonner, a 24-year Chevron (ticker: CVX) veteran, saying she can “build on Chevron’s strong foundation and drive further shareholder value.”
Announcement – Scroll to Continue
Chevron disclosed that it had record quarterly production in the Permian Basin, a shale-producing region in west Texas and southeastern New Mexico. Production there was 11% higher than in the second quarter of last year. It produced 772,000 barrels of oil equivalent per day, adding that it is on track for full-year guidance.
Quarterly distributions to shareholders of $7.2 billion also set a record, Chevron said, including $4.4 billion in share repurchases and $2.8 billion in dividends.
Chevron expects to close shale drill acquisition
in August.
Write Liz Moyer at liz.moyer@barrons.com