10-QPeriod: Q1 FY2010

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 5, 2010For Securities:CVX

Summary

Chevron Corporation (CVX) reported a significant increase in financial performance for the first quarter of 2010 compared to the same period in 2009. Net income attributable to Chevron Corporation surged to $4.55 billion, or $2.27 per diluted share, a substantial rise from $1.84 billion, or $0.92 per diluted share, in Q1 2009. This improvement was primarily driven by a strong rebound in the Upstream segment, which benefited from higher crude oil and natural gas prices and increased production volumes. While the Downstream segment experienced a decline in earnings due to the absence of asset sale gains in the prior year and restructuring charges in the current period, the overall financial picture presented a robust recovery and significant growth. The company's liquidity remained strong, with substantial cash generated from operations funding capital expenditures and dividends, including a planned increase in the quarterly dividend.

Financial Highlights

44 data points
Beta

Revenue

$48.18B

Net Income

$4.55B

9.4% Net Margin

EPS (Diluted)

$2.27

Total Assets

$168.93B

Cash & Equivalents

$7.38B

Free Cash Flow

$7.52B

Financial Statements
Beta
Revenue$48.18B
SG&A Expenses$1.04B
Operating Expenses$40.53B
Interest Expense$20.00M
Net Income$4.55B
EPS (Basic)$2.28
EPS (Diluted)$2.27
Shares Outstanding (Basic)1.99B
Shares Outstanding (Diluted)2.00B

Key Highlights

  • 1Net income attributable to Chevron Corporation increased by 148% to $4.55 billion in Q1 2010 from $1.84 billion in Q1 2009.
  • 2Diluted earnings per share rose to $2.27 from $0.92 year-over-year, reflecting the strong profit growth.
  • 3The Upstream segment saw earnings jump to $4.72 billion from $1.38 billion, driven by higher commodity prices and increased production.
  • 4Downstream segment earnings decreased to $196 million from $753 million, impacted by the lack of prior-year asset sale gains and current-year restructuring charges.
  • 5Operating cash flow more than tripled to $7.52 billion from $2.40 billion, underscoring improved operational performance and pricing.
  • 6Capital expenditures were reduced to $4.38 billion from $6.47 billion year-over-year, indicating disciplined investment.
  • 7The company increased its quarterly dividend to $0.68 per share from $0.65, signaling confidence in future cash flows.

Frequently Asked Questions

The primary driver was the substantial improvement in the Upstream segment's performance, largely due to higher crude oil and natural gas prices and an increase in production volumes compared to the same period in the previous year. This offset the decline in the Downstream segment's earnings.

Chevron generated strong operating cash flow of $7.52 billion, which was sufficient to fund its capital and exploratory program of $4.38 billion and pay $1.4 billion in dividends to common shareholders. The company also announced an increase in its quarterly dividend.

The filing highlights several significant contingent liabilities and risks, including ongoing MTBE litigation, the substantial Ecuador lawsuit with an uncertain outcome and potential for significant damages, and various environmental liabilities related to past operations. The company also notes potential impacts from regulatory changes and commodity price volatility.

Effective January 1, 2010, Chevron reclassified certain businesses. Chemicals businesses are now reported under the Downstream segment, and upstream-enabling operations (like gas-to-liquids projects and major export pipelines) have moved from Downstream to Upstream. Prior period information has been revised to ensure comparability.