01—Abstract
Summary
Summary of the 10-K filed February 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Chevron Corporation's (CVX) 2023 10-K filing reveals a solid financial performance, although net income decreased compared to the record year of 2022, primarily due to lower commodity prices across its Upstream segment.
The company demonstrated resilience with strong cash flow from operations, supporting significant capital expenditures, dividends, and share repurchases. The acquisition of PDC Energy significantly boosted production, particularly in the Permian Basin and DJ Basin, aligning with Chevron's strategy to grow its oil and gas business while also investing in lower-carbon solutions. Investors should note Chevron's continued commitment to returning capital to shareholders, evidenced by an increase in dividends for the 36th consecutive year and substantial share repurchases.
The company's strategic focus remains on delivering higher returns, lower carbon intensity, and superior shareholder value, with ongoing efforts to optimize its portfolio, manage costs, and navigate the evolving energy landscape. The pending acquisition of Hess Corporation, if completed, is expected to further strengthen Chevron's long-term performance, particularly in the attractive Guyana offshore basin.
02—Key points
Key Highlights
- Net income attributable to Chevron Corporation for 2023 was $21.4 billion, a decrease from $35.5 billion in 2022, largely driven by lower commodity prices.
- Worldwide net oil-equivalent production in 2023 averaged 3.1 million barrels per day, a 4% increase from 2022, primarily due to the acquisition of PDC Energy and growth in the Permian Basin.
- Chevron's Upstream segment generated $17.4 billion in earnings, while the Downstream segment reported $6.1 billion in earnings.
- The company returned $26.2 billion to shareholders in 2023 through dividends ($11.3 billion) and share repurchases ($14.9 billion).
- Capital expenditures for 2023 totaled $15.8 billion, with an estimated $16 billion planned for 2024, focusing on Permian Basin development and lower-carbon investments.
- Chevron declared a quarterly dividend of $1.63 per share in March 2024, marking the 36th consecutive year of annual dividend per share increases.
- The company announced a definitive agreement to acquire Hess Corporation for approximately $53 billion, a transaction expected to close around mid-2024, subject to regulatory and stockholder approvals.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 26, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $196.91B$235.72B | −16.5% |
| Cost of Revenue | $119.20B$145.42B | −18.0% |
| Gross Profit | $77.72B$90.30B | −13.9% |
| R&D Expenses | $320.00M$268.00M | +19.4% |
| SG&A Expenses | $4.14B$4.31B | −4.0% |
| Operating Expenses | $171.37B$196.58B | −12.8% |
| Interest Expense | $469.00M$516.00M | −9.1% |
| Net Income | $21.40B$35.50B | −39.7% |
| EPS (Basic) | $11.41$18.36 | −37.9% |
| EPS (Diluted) | $11.36$18.28 | −37.9% |
| Shares Outstanding (Basic) | 1.87B1.93B | −3.0% |
| Shares Outstanding (Diluted) | 1.88B1.94B | −3.1% |
05—Questions
Frequently Asked Questions
What was Chevron's financial performance in 2023 compared to 2022?
In 2023, Chevron reported a net income attributable to Chevron Corporation of $21.4 billion, a decrease from $35.5 billion in 2022. This reduction was primarily driven by lower commodity prices experienced throughout the year, impacting the Upstream segment's earnings.
How did Chevron's production perform in 2023, and what drove the changes?
Chevron's net oil-equivalent production increased by 4% in 2023 to an average of 3.1 million barrels per day. This growth was significantly influenced by the acquisition of PDC Energy, which contributed to increased production in key U.S. shale plays like the Permian Basin and the DJ Basin.
What is Chevron's strategy regarding shareholder returns and investments in lower-carbon energy?
Chevron demonstrated a strong commitment to shareholder returns in 2023, paying $11.3 billion in dividends and repurchasing $14.9 billion of its stock. The company also continues to invest in its lower-carbon strategy, allocating approximately $2 billion to lower the carbon intensity of its oil and gas operations and $8 billion towards lower carbon investments in renewable fuels, hydrogen, and carbon capture through 2028.
What is the significance of the proposed acquisition of Hess Corporation?
The definitive agreement to acquire Hess Corporation for approximately $53 billion is a major strategic move for Chevron. It is expected to significantly strengthen Chevron's long-term performance by adding world-class assets and people, particularly in the high-growth Guyana offshore basin, complementing Chevron's existing portfolio.
06—Continue