10-QPeriod: Q1 FY2012

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2012

Filed May 3, 2012For Securities:CVX

Summary

Chevron Corporation (CVX) reported solid financial results for the first quarter of 2012, with net income attributable to Chevron Corporation increasing to $6.47 billion, or $3.27 per diluted share, up from $6.21 billion, or $3.09 per diluted share, in the same period of 2011. This growth was primarily driven by higher crude oil realizations, which positively impacted the Upstream segment's earnings. The company maintained a strong balance sheet with total assets of $214.89 billion. Despite a decrease in net cash provided by operating activities to $8.39 billion from $9.81 billion year-over-year, Chevron continued to invest heavily in capital and exploratory expenditures, totaling $6.42 billion, with a significant majority allocated to the Upstream segment. The company also returned value to shareholders through dividends and share repurchases, demonstrating a commitment to capital discipline and shareholder returns.

Financial Highlights

43 data points
Beta

Revenue

$60.70B

Net Income

$6.47B

10.7% Net Margin

EPS (Diluted)

$3.27

Total Assets

$214.89B

Cash & Equivalents

$18.87B

Free Cash Flow

$8.39B

Financial Statements
Beta
Revenue$60.70B
SG&A Expenses$940.00M
Operating Expenses$48.64B
Net Income$6.47B
EPS (Basic)$3.30
EPS (Diluted)$3.27
Shares Outstanding (Basic)1.96B
Shares Outstanding (Diluted)1.98B

Key Highlights

  • 1Net income attributable to Chevron Corporation increased by 4.2% to $6.47 billion for Q1 2012, compared to $6.21 billion in Q1 2011.
  • 2Diluted earnings per share rose to $3.27 in Q1 2012, up from $3.09 in Q1 2011.
  • 3Total revenues and other income slightly increased to $60.70 billion in Q1 2012 from $60.34 billion in Q1 2011.
  • 4Upstream segment earnings were $6.17 billion, an increase from $5.98 billion in the prior year, primarily due to higher crude oil realizations.
  • 5Downstream segment earnings improved to $804 million from $622 million, benefiting from gains on asset sales.
  • 6Capital and exploratory expenditures totaled $6.42 billion in Q1 2012, an increase from $5.05 billion in Q1 2011, indicating continued investment in growth.
  • 7The company repurchased $1.25 billion of its common stock in Q1 2012, alongside paying dividends, signaling a commitment to shareholder returns.

Frequently Asked Questions

The primary driver of Chevron's earnings growth in the first quarter of 2012 was the increase in crude oil realizations, which significantly benefited the Upstream segment's profitability.

Chevron increased its capital and exploratory expenditures in the first quarter of 2012 to $6.42 billion, up from $5.05 billion in the same period of 2011. The majority of these investments were directed towards the Upstream segment.

Chevron returned capital to shareholders through dividend payments and a share repurchase program. The company increased its quarterly dividend and repurchased $1.25 billion of its common stock in the first quarter of 2012.

Chevron is involved in several significant legal proceedings, most notably a substantial environmental lawsuit in Ecuador, which carries a potential for significant damages. The company also faces ongoing environmental remediation obligations and potential liabilities related to past operations and products like MTBE. Management considers these matters to have uncertain outcomes and potential financial effects.