Summary
Chevron Corporation (CVX) reported a significant increase in net income for the nine months ended September 30, 2018, compared to the same period in 2017, driven primarily by a substantial rise in upstream earnings. This improvement was fueled by higher crude oil realizations and increased production volumes, reflecting a more favorable commodity price environment. Downstream segment earnings saw a decrease, primarily attributed to lower gains on asset sales and reduced margins on refined product sales. The company maintained a strong liquidity position with a substantial cash balance and demonstrated a commitment to returning capital to shareholders through significant dividend payments, while also initiating share repurchases in the third quarter of 2018. Capital expenditures remained robust, with a significant portion allocated to upstream projects, particularly in the Permian Basin and major international capital projects like Wheatstone and Gorgon. The company's financial health is supported by its strong credit ratings and ample committed credit facilities.
Financial Highlights
47 data points| Revenue | $42.10B |
| Cost of Revenue | $24.68B |
| Gross Profit | $17.42B |
| SG&A Expenses | $1.02B |
| Operating Expenses | $38.29B |
| Interest Expense | $182.00M |
| Net Income | $4.05B |
| EPS (Basic) | $2.13 |
| EPS (Diluted) | $2.11 |
| Shares Outstanding (Basic) | 1.90B |
| Shares Outstanding (Diluted) | 1.92B |
Key Highlights
- 1Net income attributable to Chevron Corporation more than doubled for the first nine months of 2018 ($11.1 billion) compared to the same period in 2017 ($6.1 billion).
- 2Upstream segment earnings saw a dramatic increase, rising to $10.0 billion for the first nine months of 2018 from $2.9 billion in the prior year, driven by higher crude oil prices and production.
- 3Downstream segment earnings decreased for the first nine months of 2018 to $2.9 billion from $3.9 billion in 2017, mainly due to lower gains on asset sales and reduced refined product margins.
- 4The company paid dividends of $6.4 billion to common stockholders in the first nine months of 2018 and initiated share repurchases in Q3 2018, buying back $750 million of stock.
- 5Cash and cash equivalents increased significantly to $9.7 billion as of September 30, 2018, from $4.8 billion at year-end 2017, supported by strong operating cash flow.
- 6Capital and exploratory expenditures, including equity affiliates, totaled $14.3 billion for the first nine months of 2018, with 88% allocated to upstream projects.
- 7The company's debt-to-equity ratio remained conservative at 19.0% as of September 30, 2018.