10-QPeriod: Q3 FY2022

CHEVRON CORP Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 3, 2022For Securities:CVX

Summary

Chevron Corporation reported a substantial increase in financial performance for the nine months ended September 30, 2022, compared to the same period in 2021. Net income attributable to Chevron Corporation surged to $29.112 billion ($14.95 diluted EPS) from $10.570 billion ($5.51 diluted EPS) in the prior year. This robust growth was driven primarily by significantly higher crude oil and natural gas prices, which boosted earnings across both the Upstream and Downstream segments, despite some moderation in commodity prices during the third quarter. The company's Upstream segment saw its earnings more than double year-over-year, reaching $24.798 billion, largely due to increased realizations and favorable foreign currency effects. The Downstream segment also demonstrated strong performance, with earnings rising to $6.383 billion, primarily attributed to higher margins on refined product sales and positive foreign currency impacts. The company's strategic investments in lower-carbon businesses and its ongoing commitment to shareholder returns, including significant dividend payments and share repurchases, are also key highlights for investors.

Financial Highlights

48 data points
Beta

Revenue

$63.51B

39.0% Gross Margin

Net Income

$11.23B

17.7% Net Margin

EPS (Diluted)

$5.78

Total Assets

$259.74B

Cash & Equivalents

$15.16B

Free Cash Flow

$15.27B

Financial Statements
Beta
Revenue$63.51B
Cost of Revenue$38.75B
Gross Profit$24.76B
SG&A Expenses$1.03B
Operating Expenses$51.84B
Interest Expense$128.00M
Net Income$11.23B
EPS (Basic)$5.81
EPS (Diluted)$5.78
Shares Outstanding (Basic)1.93B
Shares Outstanding (Diluted)1.94B

Key Highlights

  • 1Net income attributable to Chevron Corporation for the nine months ended September 30, 2022, was $29.112 billion, a significant increase from $10.570 billion in the same period of 2021.
  • 2Diluted Earnings Per Share (EPS) for the nine months reached $14.95, up from $5.51 in the prior year, reflecting strong operational and pricing performance.
  • 3Upstream segment earnings more than doubled, totaling $24.798 billion for the nine months, driven by higher crude oil and natural gas realizations.
  • 4Downstream segment earnings increased substantially to $6.383 billion for the nine months, benefiting from higher refined product sales margins and favorable foreign currency effects.
  • 5Total revenues and other income for the nine months grew to $189.779 billion, up from $114.336 billion in the prior year, reflecting favorable commodity prices.
  • 6Chevron returned significant value to shareholders through $8.3 billion in common stock dividends and $7.5 billion in share repurchases during the first nine months of 2022.
  • 7The company's balance sheet shows a strong liquidity position, with cash and cash equivalents and marketable securities totaling $15.4 billion at September 30, 2022, and a reduction in total debt.

Frequently Asked Questions

The substantial increase in Chevron's earnings for the first nine months of 2022 was primarily driven by significantly higher crude oil and natural gas prices, which led to improved realizations across the Upstream segment. Additionally, the Downstream segment benefited from higher refined product sales margins and favorable foreign currency effects.

Chevron demonstrated a strong commitment to shareholder returns by paying $8.3 billion in common stock dividends and repurchasing $7.5 billion of its shares during the first nine months of 2022. The company also has an ongoing stock repurchase program with $10.7 billion remaining authorization as of September 30, 2022.

Chevron's earnings are highly dependent on commodity prices, particularly crude oil. The company aims to deliver higher returns, lower carbon emissions, and superior shareholder value. It is actively developing oil and gas resources while also investing in lower-carbon businesses such as renewable fuels, hydrogen, and carbon capture. Chevron supports the Paris Agreement and integrates climate change-related issues into its strategy and operations.

Chevron maintains a strong financial position. For the nine months ended September 30, 2022, cash provided by operating activities was $37.1 billion. The company ended the period with $15.4 billion in cash, cash equivalents, and marketable securities. Total debt decreased by approximately $7.8 billion compared to year-end 2021, indicating a healthy balance sheet and robust liquidity.