10-QPeriod: Q2 FY2012

CHEVRON CORP Quarterly Report for Q2 Ended Jun 30, 2012

Filed August 2, 2012For Securities:CVX

Summary

Chevron Corporation reported net income attributable to Chevron Corporation of $7.21 billion for the second quarter of 2012, a decrease from $7.73 billion in the same period of 2011. For the first six months of 2012, net income was $13.68 billion, down from $13.94 billion in the first half of 2011. The decline in earnings was primarily driven by lower crude oil prices and production volumes in the Upstream segment, which were partially offset by improved performance in the Downstream segment, largely due to gains on asset sales and better refining margins. The company's financial position remained strong, with cash and cash equivalents increasing to $21.2 billion. Capital expenditures for the first half of 2012 were $14.2 billion, reflecting continued investment in upstream projects. Chevron also continued its commitment to shareholder returns, paying $3.4 billion in dividends and repurchasing $1.25 billion in common stock during the second quarter.

Financial Highlights

44 data points
Beta

Revenue

$62.61B

Net Income

$7.21B

11.5% Net Margin

EPS (Diluted)

$3.66

Total Assets

$219.38B

Cash & Equivalents

$21.21B

Free Cash Flow

$9.91B

Financial Statements
Beta
Revenue$62.61B
SG&A Expenses$1.25B
Operating Expenses$50.25B
Net Income$7.21B
EPS (Basic)$3.68
EPS (Diluted)$3.66
Shares Outstanding (Basic)1.95B
Shares Outstanding (Diluted)1.97B

Key Highlights

  • 1Net income attributable to Chevron Corporation for Q2 2012 was $7.21 billion, down from $7.73 billion in Q2 2011.
  • 2For the first six months of 2012, net income was $13.68 billion, a slight decrease from $13.94 billion in the prior year period.
  • 3Upstream segment earnings decreased due to lower crude oil realizations and volumes.
  • 4Downstream segment earnings increased significantly, driven by asset sale gains and improved refining margins.
  • 5Cash and cash equivalents increased to $21.2 billion as of June 30, 2012.
  • 6Capital expenditures for the first six months of 2012 totaled $14.2 billion, with a significant portion allocated to upstream projects.
  • 7The company paid $3.4 billion in dividends and repurchased $1.25 billion of its stock in the second quarter of 2012.

Frequently Asked Questions

The primary driver for the decrease in net income was lower crude oil realizations and volumes in the Upstream segment. While the Downstream segment saw improved performance due to asset sales and better refining margins, it was not enough to fully offset the decline in the Upstream business.

The Upstream segment's earnings decreased due to lower crude oil volumes and prices. Conversely, the Downstream segment's earnings saw a substantial increase, largely attributed to gains from asset sales and improved refining margins. 'All Other' activities reported higher net charges compared to the previous year.

Chevron invested $14.2 billion in capital and exploratory expenditures in the first six months of 2012, with the majority ($12.9 billion) directed towards upstream projects. Investments were made both domestically and internationally, with a significant focus on international upstream operations.

Chevron maintained a strong liquidity position with $21.5 billion in cash, cash equivalents, time deposits, and marketable securities at June 30, 2012. The company paid $3.4 billion in dividends to common shareholders in the first half of 2012 and repurchased $1.25 billion of its common stock in the second quarter as part of its ongoing share repurchase program.