What were Chevron's main drivers of financial performance in Q1 2023?

Chevron's financial performance in Q1 2023 was primarily driven by strong earnings in its Downstream segment, which benefited from higher refining margins. While the Upstream segment experienced lower earnings due to decreased commodity prices, the overall net income attributable to Chevron Corporation increased year-over-year, demonstrating resilience.

How did commodity price changes affect Chevron's results?

Lower commodity prices significantly impacted Chevron's total revenues and Upstream segment earnings, leading to decreased realizations. However, these lower input costs also contributed to improved margins in the Downstream segment, partially offsetting the upstream weakness.

What is Chevron's approach to capital allocation, including dividends and share repurchases?

Chevron remains committed to returning value to shareholders. In Q1 2023, the company paid $2.9 billion in dividends and repurchased $3.75 billion of its stock. A new, substantial $75 billion share repurchase program was authorized and became effective in April 2023, indicating a strong focus on capital return.

Are there any significant legal or environmental matters that could impact Chevron's financials?

Chevron is involved in several significant legal proceedings, including ongoing litigation in Ecuador and various climate change-related lawsuits. While management believes these claims are meritless, the company acknowledges the potential for material adverse effects on its results of operations and financial condition, although they do not expect them to materially affect consolidated financial position or liquidity at this time.

CVX 10-Q Quarterly Report Q1 FY2023 — Revenue, Net Income, EPS

Summary

Chevron Corporation reported solid financial results for the first quarter of 2023, with net income attributable to the company reaching $6.57 billion, or $3.46 per diluted share. This represents an increase from the $6.26 billion in net income ($3.22 per diluted share) reported in the first quarter of 2022. Total revenues for the quarter were $48.84 billion, a decrease from $52.31 billion in the prior year's comparable period, primarily driven by lower commodity prices. The company's Upstream segment saw a decrease in earnings to $5.16 billion from $6.93 billion year-over-year, largely due to lower crude oil and natural gas realizations. Conversely, the Downstream segment demonstrated significant strength, with earnings surging to $1.80 billion from $331 million, primarily driven by improved refining margins on refined product sales. This quarter highlights Chevron's resilience and ability to generate substantial profits even amidst fluctuating commodity prices, supported by strong performance in its downstream operations.

Financial Highlights

47 data points

Beta

Revenue

$48.84B

0.4% Gross Margin

Net Income

$6.57B

0.1% Net Margin

EPS (Diluted)

$3.46

Total Assets

$255.89B

Cash & Equivalents

$15.67B

Free Cash Flow

$7.21B

Financial Statements

Beta

Revenue	$48.84B
Cost of Revenue	$29.41B
Gross Profit	$19.43B
SG&A Expenses	$881.00M
Operating Expenses	$41.27B
Interest Expense	$115.00M
Net Income	$6.57B
EPS (Basic)	$3.48
EPS (Diluted)	$3.46
Shares Outstanding (Basic)	1.89B
Shares Outstanding (Diluted)	1.90B

Key Highlights

1Net income attributable to Chevron Corporation was $6.57 billion ($3.46 diluted EPS) for Q1 2023, up from $6.26 billion ($3.22 diluted EPS) in Q1 2022.
2Total revenues decreased to $48.84 billion from $52.31 billion year-over-year, primarily due to lower commodity prices.
3Upstream segment earnings decreased to $5.16 billion from $6.93 billion, driven by lower realizations.
4Downstream segment earnings significantly increased to $1.80 billion from $331 million, driven by higher refining margins.
5The company paid $2.9 billion in dividends to common stockholders in Q1 2023, an increase from $2.75 billion in Q1 2022.
6Capital expenditures were $3.04 billion in Q1 2023, an increase from $1.96 billion in Q1 2022, reflecting higher investment.
7Chevron repurchased $3.75 billion of its stock in Q1 2023 and announced a new $75 billion share repurchase program effective April 1, 2023.

CHEVRON CORP Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions