Summary
Chevron Corporation's 2019 Form 10-K details a challenging year marked by lower commodity prices and significant impairment charges, particularly in the U.S. Upstream segment, which reported a substantial loss. Despite these headwinds, the company maintained a strong operational focus, with worldwide oil-equivalent production increasing slightly due to growth in shale and tight properties, notably in the Permian Basin. The Downstream segment demonstrated resilience, though margins were lower compared to the previous year. Chevron continued to invest heavily in capital expenditures, with a significant portion directed towards upstream activities, including major projects in Kazakhstan and the Permian Basin. The company also highlighted its commitment to shareholder returns through consistent dividend increases and ongoing share repurchases, supported by a solid balance sheet and strong credit ratings.
Financial Highlights
49 data points| Revenue | $139.87B |
| Cost of Revenue | $80.11B |
| Gross Profit | $59.75B |
| R&D Expenses | $500.00M |
| SG&A Expenses | $4.14B |
| Operating Expenses | $140.98B |
| Interest Expense | $798.00M |
| Net Income | $2.92B |
| EPS (Basic) | $1.55 |
| EPS (Diluted) | $1.54 |
| Shares Outstanding (Basic) | 1.88B |
| Shares Outstanding (Diluted) | 1.90B |
Key Highlights
- 1Chevron reported a net loss of $5.09 billion in its U.S. upstream segment for 2019, primarily due to $8.17 billion in impairment charges related to Appalachia shale and Big Foot assets.
- 2Worldwide oil-equivalent production averaged 3.058 million barrels per day in 2019, an increase of over 4% from 2018, driven by shale and tight properties and the Wheatstone project in Australia.
- 3The company's Brent crude oil average realization was $64 per barrel in 2019, down from $71 in 2018, while WTI crude oil averaged $57 per barrel, down from $65.
- 4U.S. downstream earnings decreased to $1.56 billion in 2019 from $2.10 billion in 2018, mainly due to lower refined product margins and equity earnings from CPChem.
- 5International downstream earnings also saw a decline, from $1.70 billion in 2018 to $922 million in 2019, impacted by lower margins and the absence of asset sale gains from the prior year.
- 6Chevron paid dividends totaling $9.0 billion in 2019 and repurchased $4 billion of its common stock, while expecting to repurchase $5 billion in 2020.
- 7Total capital and exploratory expenditures for 2019 were $21.0 billion, with 85% allocated to upstream activities, including significant investments in Kazakhstan and the Permian Basin.