Summary
Chevron Corporation's third quarter and year-to-date 2019 results reflect a notable decrease in revenues and net income compared to the same periods in 2018, largely attributable to lower crude oil and natural gas prices. The Upstream segment, which is the primary driver of earnings, experienced a decline in segment earnings due to reduced commodity realizations, despite increases in production volumes, particularly in the U.S. Permian Basin. The Downstream segment also saw a significant decrease in earnings, primarily due to lower refined product margins and the absence of asset sale gains recognized in the prior year. The company continues to manage costs and capital expenditures, with a focus on short-cycle projects, while also actively repurchasing shares and paying dividends. Management remains vigilant regarding market volatility and global economic conditions, which significantly influence operational performance and profitability.
Financial Highlights
46 data points| Revenue | $34.78B |
| Cost of Revenue | $19.88B |
| Gross Profit | $14.90B |
| SG&A Expenses | $954.00M |
| Operating Expenses | $32.07B |
| Interest Expense | $197.00M |
| Net Income | $2.58B |
| EPS (Basic) | $1.38 |
| EPS (Diluted) | $1.36 |
| Shares Outstanding (Basic) | 1.88B |
| Shares Outstanding (Diluted) | 1.89B |
Key Highlights
- 1Net income attributable to Chevron Corporation decreased to $2.58 billion in Q3 2019 from $4.05 billion in Q3 2018, and $9.53 billion for the nine months ended September 30, 2019, from $11.09 billion in the prior year period, primarily due to lower oil and gas prices.
- 2Upstream segment earnings declined to $2.70 billion in Q3 2019 from $3.38 billion in Q3 2018, and to $9.31 billion for the first nine months from $10.03 billion, driven by lower crude oil and natural gas realizations.
- 3Downstream segment earnings dropped to $828 million in Q3 2019 from $1.37 billion in Q3 2018, and to $1.81 billion for the nine months from $2.94 billion, impacted by lower refined product margins and the absence of prior-year asset sale gains.
- 4U.S. upstream production increased by 12% in Q3 2019 compared to the prior year, primarily due to shale and tight properties in the Permian Basin.
- 5The company paid $6.7 billion in dividends to common stockholders during the first nine months of 2019.
- 6Chevron repurchased $1.25 billion of its common stock in Q3 2019 as part of its ongoing share repurchase program.