Summary
Chevron Corporation's 2021 10-K filing indicates a significant turnaround from a net loss in 2020 to a substantial net income of $15.6 billion in 2021. This recovery was primarily driven by a sharp increase in crude oil and natural gas prices, which significantly boosted earnings in the Upstream segment, particularly in the U.S. The Downstream segment also showed improved performance, benefiting from higher refined product margins and the performance of its chemical joint ventures. The company demonstrated a strong commitment to shareholder returns, increasing its annual dividend for the 34th consecutive year and continuing its share repurchase program. Chevron is also strategically investing in lower-carbon businesses, allocating approximately $8 billion through 2028 for initiatives in renewable fuels, hydrogen, and carbon capture, while also planning to spend $2 billion to reduce the carbon intensity of its traditional operations. Despite the strong financial rebound, the report highlights ongoing risks, including commodity price volatility, the impact of evolving climate change regulations, and operational risks. The company is navigating these challenges by focusing on efficiency, leveraging its integrated business model, and advancing its lower-carbon strategy.
Financial Highlights
51 data points| Revenue | $155.61B |
| Cost of Revenue | $92.25B |
| Gross Profit | $63.36B |
| R&D Expenses | $268.00M |
| SG&A Expenses | $4.01B |
| Operating Expenses | $140.83B |
| Interest Expense | $712.00M |
| Net Income | $15.63B |
| EPS (Basic) | $8.15 |
| EPS (Diluted) | $8.14 |
| Shares Outstanding (Basic) | 1.92B |
| Shares Outstanding (Diluted) | 1.92B |
Key Highlights
- 1Chevron reported a net income of $15.6 billion in 2021, a significant improvement from a net loss of $5.5 billion in 2020, driven by higher commodity prices and improved downstream margins.
- 2Upstream segment earnings surged to $15.8 billion in 2021, a substantial recovery from a $2.4 billion loss in 2020, primarily due to higher realizations for crude oil and natural gas.
- 3Downstream segment earnings increased to $2.9 billion in 2021 from $0.05 billion in 2020, aided by better refining margins and strong performance from chemical joint ventures.
- 4The company announced a planned lower-carbon capital spend of approximately $10 billion through 2028, with $8 billion allocated to growing renewable fuels, hydrogen, and carbon capture businesses, and $2 billion for reducing carbon intensity in traditional operations.
- 5Chevron increased its quarterly dividend by approximately six percent in January 2022, marking its 34th consecutive annual dividend increase.
- 6Worldwide net oil-equivalent production reached a record 3.099 million barrels per day in 2021, with a reserve replacement ratio of 112%.
- 7The company completed the acquisition of Noble Energy, Inc. in October 2020, which is noted as contributing to increased production and reserves in 2021.