01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
Chevron Corporation's 2022 10-K filing reveals a strong financial performance, driven by significantly higher commodity prices compared to the previous year.
The company reported substantial increases in sales and operating revenues, reflecting improved upstream realizations and downstream margins. Chevron's strategic focus on delivering higher returns, lower carbon energy, and superior shareholder value is evident in its operations. The company continues to invest in its traditional oil and gas business while also advancing lower carbon initiatives in renewable fuels, hydrogen, and carbon capture.
Significant capital expenditures were allocated to upstream development, particularly in the Permian Basin, and downstream enhancements. The company also highlighted its commitment to shareholder returns through substantial stock repurchases and an increasing quarterly dividend, marking its 35th consecutive year of dividend increases.
02—Key points
Key Highlights
- Chevron reported a net income attributable to Chevron Corporation of $35.5 billion for 2022, a significant increase from $15.6 billion in 2021, driven by higher energy prices and improved operational performance.
- Sales and other operating revenues surged to $235.7 billion in 2022, up from $155.6 billion in 2021, reflecting robust market conditions.
- The company's upstream segment saw earnings more than double, reaching $30.3 billion in 2022, driven by higher realizations for crude oil and natural gas.
- Downstream segment earnings also showed substantial improvement, rising to $8.2 billion in 2022 from $2.9 billion in 2021, due to stronger refining margins.
- Chevron repurchased $11.3 billion of its common stock in 2022 and increased its quarterly dividend by six percent in January 2023, demonstrating a commitment to shareholder returns.
- Capital expenditures increased to $12.0 billion in 2022, with significant investments directed towards upstream development in the Permian Basin and lower carbon initiatives.
- The company continues to advance its lower carbon strategy, with planned capital spend of approximately $10 billion through 2028 in renewable fuels, hydrogen, and carbon capture, with $4.8 billion already invested in 2021-2022.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $235.72B$155.61B | +51.5% |
| Cost of Revenue | $145.42B$92.25B | +57.6% |
| Gross Profit | $90.30B$63.36B | +42.5% |
| R&D Expenses | $268.00M$268.00M | 0.0% |
| SG&A Expenses | $4.31B$4.01B | +7.4% |
| Operating Expenses | $196.58B$140.83B | +39.6% |
| Interest Expense | $516.00M$712.00M | −27.5% |
| Net Income | $35.50B$15.60B | +127.6% |
| EPS (Basic) | $18.36$8.15 | +125.3% |
| EPS (Diluted) | $18.28$8.14 | +124.6% |
| Shares Outstanding (Basic) | 1.93B1.92B | +0.8% |
| Shares Outstanding (Diluted) | 1.94B1.92B | +1.0% |
05—Questions
Frequently Asked Questions
How did Chevron perform financially in 2022 compared to 2021?
Chevron experienced a significant improvement in its financial performance in 2022. Net income attributable to Chevron Corporation more than doubled to $35.5 billion, compared to $15.6 billion in 2021. This was driven by a substantial increase in sales and operating revenues to $235.7 billion, up from $155.6 billion in 2021, primarily due to higher commodity prices and improved refining margins.
What is Chevron's strategy regarding lower carbon energy and investments?
Chevron's strategy is to deliver higher returns, lower carbon energy, and superior shareholder value. The company plans to grow its traditional oil and gas business while also investing in lower carbon businesses such as renewable fuels, hydrogen, and carbon capture and storage. They have earmarked approximately $10 billion for lower carbon investments through 2028, with $4.8 billion already deployed in 2021-2022.
How is Chevron returning capital to shareholders?
Chevron is committed to returning capital to shareholders through dividends and share repurchases. In 2022, the company repurchased $11.3 billion of its common stock. Furthermore, it increased its quarterly dividend by six percent in January 2023, marking the 35th consecutive year of dividend increases, highlighting a consistent return of capital.
What were Chevron's key capital expenditure areas in 2022?
Chevron's capital expenditures increased to $12.0 billion in 2022. A significant portion of these investments were directed towards upstream development, particularly in the Permian Basin and the Gulf of Mexico. The company also allocated capital to downstream projects and its growing lower carbon initiatives.
06—Continue