Chevron beats forecasts despite lower crude prices, Hess acquisition

Chevron reported a 43% drop in second-quarter earnings on Friday, as weaker crude prices and charges tied to its acquisition of Hess weighed on the bottom line, though adjusted results beat expectations on strong production and resilient operations.

Source: Sharecast

Net income fell to $2.5bn, or $1.45 per diluted share, down from $4.4bn, or $2.43 per share, in the same period a year earlier.

The oil giant said the quarter included a $215m charge related to the fair value of Hess shares and pension curtailment costs, partly offset by gains from pipeline asset sales.

Excluding one-off items, adjusted earnings came in at $3.1bn, or $1.77 per share, ahead of the $1.70 consensus forecast.

Revenue rose to $44.8bn, surpassing analyst expectations.

Chevron said foreign currency effects reduced earnings by $348m.

Despite the headline earnings decline, chief executive officer Mike Wirth described the quarter as a demonstration of “continued strong execution, record production, and exceptional cash generation”.

Production rose 3% year-on-year to 3.4 million barrels of oil equivalent per day, with US output up 8% to 1.69 million daily equivalent barrels.

The Permian Basin hit a milestone of one million barrels of oil equivalent per day.

Chevron said it returned $5.5bn to shareholders during the quarter, marking the 13th consecutive period of distributing over $5 billion through dividends and buybacks.

The company said it completed its $53bn acquisition of Hess Corporation in July, following a protracted arbitration dispute with ExxonMobil.

It said the deal added strategic assets in Guyana, the Bakken shale, and the Gulf of Mexico.

Chevron said it expected the transaction to contribute to earnings starting in the fourth quarter and anticipates $1bn in annual cost savings by the end of 2025.

Earnings from Chevron’s upstream business fell 38% to $2.72bn due to lower energy prices, while refining profits rose 23% to $737m, supported by stronger margins.

The company said the integration of Hess and sustained high output levels would support its long-term growth plans, positioning it for improved free cash flow generation in the years ahead.

At 0645 EDT (1145 BST), shares in Chevron Corporation were up 0.51% in premarket trading in New York at $152.45.

Reporting by Josh White for Sharecast.com.

Transferring your account

Transfer your existing ISAs and Share Dealing Accounts and you could save money. In order to transfer, log in to your existing account and complete the online application form. We’ll do the rest for you. It’s free to transfer (we will not charge you). Please check your current provider to see if they have any charges for transferring.

Transfer to us

Chevron Corp. ( CVX )

Isin: US1667641005

Exchange: New York Stock Exchange

Sell:

$ 151.20

Buy:

$ 151.63

Change: -0.24 ( -0.16 %)

Date:

01/08/2025 - 21:10

Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Bank of Scotland is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.