Chevron’s Mixed Q1: $2.93 Adj. EPS, $48.72 B in Revenue
Chevron Corporation (NYSE: CVX) reported its first-quarter earnings for 2024, showcasing a robust performance despite a slight dip in earnings compared to the previous year.
The company announced earnings of $5.5 billion, or $2.97 per share (diluted), a decrease from the $6.6 billion, or $3.46 per share, reported in the first quarter of 2023. Adjusted earnings were slightly lower at $5.4 billion, or $2.93 per share, compared to $6.7 billion, or $3.55 per share in the same period last year.
Despite the decrease, Chevron’s worldwide production increased significantly by 12 percent from a year ago, with a notable uptick in U.S. production, which surged 35 percent due to strategic acquisitions and strong execution in key basins.
Current Quarter’s Performance
The company’s financial health remained strong, with cash flow from operations (CFFO) amounting to $6.8 billion for the quarter, albeit lower than the $7.2 billion reported in the first quarter of 2023.
This reduction in CFFO was primarily attributed to lower earnings and increased spending on expansion and asset retirements, partially offset by lower working capital.
Chevron continued its shareholder-friendly initiatives, returning $6 billion in cash to its shareholders through dividends and share repurchases, marking the eighth consecutive quarter where cash returns exceeded $5 billion.
Additionally, Chevron’s capital employed in the first quarter of 2024 yielded a return on capital employed (ROCE) of over 12 percent, showcasing the efficiency and profitability of its operations.
Chevron Beats Revenue Expectations, Slight Miss on EPS with $2.93 Adj.
Chevron’s first-quarter performance was closely aligned with market expectations, slightly exceeding the anticipated earnings per share (EPS) of $2.96 ($2.93 adj) and beating the revenue forecast of $47.19 billion. The actual earnings of $2.97 per share on revenues of $48.72 billion demonstrated Chevron’s ability to navigate the complexities of the energy market, maintaining profitability and operational excellence. However, the adjusted EPS of $2.93 fell short of expectations.
The slight discrepancy between expected and actual performance underscores the challenges the energy sector faces, including fluctuating commodity prices and operational hurdles. However, Chevron’s strategic investments, particularly in the U.S., and its focus on key project milestones in Kazakhstan, the East Mediterranean, and the U.S., have bolstered its production capabilities and positioned it for sustained growth.
Chevron Provides Optimistic Guidance for Remainder of 2024
Looking ahead, Chevron has provided optimistic guidance for the remainder of 2024, focusing on continued operational and financial performance improvements. The company’s strategic initiatives, including expanding its carbon capture, hydrogen, and renewable fuels businesses, are expected to drive future growth and enhance Chevron’s portfolio resilience. Furthermore, Chevron’s commitment to returning value to shareholders remains unwavering, with plans to sustain its dividend payouts and share repurchase programs.
The successful startup of the Wellhead Pressure Management Project (WPMP) and other key milestones reflect Chevron’s ability to execute its strategic priorities, promising a positive outlook for its future performance.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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