10-QPeriod: Q1 FY2013

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 2, 2013For Securities:CVX

Summary

Chevron Corporation reported net income attributable to Chevron Corporation of $6.178 billion for the first quarter of 2013, a slight decrease from $6.471 billion in the same period of 2012. Diluted earnings per share were $3.18 compared to $3.27 in the prior year. Total revenues and other income decreased to $56.818 billion from $60.705 billion year-over-year, primarily driven by lower sales and other operating revenues. Key factors influencing performance included a decrease in upstream earnings, mainly due to lower crude oil realizations and volumes, partially offset by favorable tax items and lower exploration expenses. Downstream earnings also saw a decline, impacted by the absence of prior-year gains on asset sales and higher operating expenses, though partially supported by improved margins. The company continued its commitment to shareholder returns, paying $1.7 billion in dividends and repurchasing $1.25 billion in common stock during the quarter. Capital expenditures remained significant, with a total of $8.9 billion invested, primarily in upstream projects.

Financial Highlights

44 data points
Beta

Revenue

$56.82B

Net Income

$6.18B

10.9% Net Margin

EPS (Diluted)

$3.18

Total Assets

$237.41B

Cash & Equivalents

$17.37B

Free Cash Flow

$5.71B

Financial Statements
Beta
Revenue$56.82B
SG&A Expenses$998.00M
Operating Expenses$46.53B
Net Income$6.18B
EPS (Basic)$3.20
EPS (Diluted)$3.18
Shares Outstanding (Basic)1.93B
Shares Outstanding (Diluted)1.94B

Key Highlights

  • 1Net income attributable to Chevron Corporation for Q1 2013 was $6.178 billion, down from $6.471 billion in Q1 2012.
  • 2Diluted earnings per share decreased to $3.18 from $3.27 year-over-year.
  • 3Total revenues and other income declined to $56.818 billion from $60.705 billion.
  • 4Upstream earnings decreased due to lower crude oil realizations and volumes, despite favorable tax items and reduced exploration expenses.
  • 5Downstream earnings decreased primarily due to the absence of 2012 asset sale gains and higher operating expenses.
  • 6The company paid $1.7 billion in dividends and repurchased $1.25 billion of its common stock in Q1 2013.
  • 7Capital and exploratory expenditures increased to $8.9 billion in Q1 2013 from $6.4 billion in Q1 2012, with the majority directed towards upstream projects.

Frequently Asked Questions

For the first quarter ended March 31, 2013, Chevron Corporation reported net income attributable to Chevron Corporation of $6.178 billion, or $3.18 per diluted share. This compares to $6.471 billion, or $3.27 per diluted share, for the same period in 2012.

The decrease in net income was primarily driven by lower earnings in the Upstream segment, mainly due to reduced crude oil realizations and volumes, and a decline in Downstream earnings, influenced by the absence of prior-year asset sale gains and increased operating expenses. These factors were partially offset by favorable tax items and improved margins in certain areas.

Chevron significantly increased its capital and exploratory expenditures to $8.9 billion in the first quarter of 2013, up from $6.4 billion in the prior year, with a strong focus on upstream projects. The company also demonstrated its commitment to shareholder returns by paying $1.7 billion in dividends and repurchasing $1.25 billion of its common stock during the quarter.

For the Upstream segment, earnings are closely tied to crude oil and natural gas prices, which are influenced by global economic conditions, industry production levels, and geopolitical events. The company's long-term success depends on its ability to find, develop, and produce resources efficiently. For the Downstream segment, profitability is linked to refining margins, which can be volatile and affected by supply/demand balances for refined products, petrochemicals, and crude oil prices, as well as refinery operational efficiency and maintenance.