Early Access

10-QPeriod: Q2 FY2022

CHEVRON CORP Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 4, 2022For Securities:CVX

Summary

Chevron Corporation (CVX) delivered exceptionally strong financial results for the second quarter and first six months of 2022, driven by significantly higher commodity prices for crude oil and natural gas. Revenues more than doubled year-over-year, with total revenues reaching $68.8 billion in Q2 2022 and $123.1 billion in the first six months of 2022, up from $37.6 billion and $69.6 billion, respectively, in the prior year periods. Net income attributable to Chevron Corporation surged to $11.6 billion ($5.95 per diluted share) in Q2 2022 and $17.9 billion ($9.17 per diluted share) in the first six months of 2022, a substantial increase from $3.1 billion ($1.60 per diluted share) and $4.5 billion ($2.32 per diluted share) in the corresponding 2021 periods. The Upstream segment was the primary driver of this performance, with earnings more than tripling in Q2 2022 and nearly tripling in the first six months of 2022, reflecting the higher commodity price environment. The Downstream segment also showed significant improvement, with earnings increasing substantially due to higher refining margins. The company's robust cash flow generation allowed for significant debt reduction and substantial shareholder returns, including dividends and share repurchases.

Financial Statements
Beta
Revenue$65.37B
Cost of Revenue$40.68B
Gross Profit$24.69B
SG&A Expenses$863.00M
Operating Expenses$52.76B
Interest Expense$129.00M
Net Income$11.62B
EPS (Basic)$5.98
EPS (Diluted)$5.95
Shares Outstanding (Basic)1.95B
Shares Outstanding (Diluted)1.96B

Key Highlights

  • 1Exceptional Net Income Growth: Net income attributable to Chevron Corporation surged to $11.6 billion in Q2 2022 and $17.9 billion for the first six months of 2022, a significant increase compared to the prior year periods.
  • 2Record Revenue Performance: Total revenues more than doubled year-over-year, reaching $68.8 billion in Q2 2022 and $123.1 billion for the first six months of 2022, driven by higher commodity prices.
  • 3Upstream Segment Dominance: The Upstream segment's earnings more than tripled in Q2 2022 and nearly tripled year-to-date, fueled by higher crude oil and natural gas realizations.
  • 4Strong Downstream Margins: The Downstream segment experienced substantial earnings growth due to improved refining margins and higher demand for refined products.
  • 5Robust Cash Flow and Shareholder Returns: Operating cash flow increased significantly, supporting substantial debt reduction and a robust program of dividends and share repurchases.
  • 6Strategic Acquisitions: Completed the acquisition of Renewable Energy Group, Inc. (REG) for approximately $3.15 billion, expanding its renewable fuels business.
  • 7Increased Capital Expenditures: Total capital and exploratory expenditures (Total C&E) increased to $6.7 billion in the first six months of 2022, with upstream projects representing 79% of the total investment.

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