10-QPeriod: Q3 FY2023

CHEVRON CORP Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 2, 2023For Securities:CVX

Summary

Chevron Corporation reported a net income of $6.53 billion for the third quarter of 2023, a decrease from $11.23 billion in the same period of 2022. Diluted earnings per share were $3.48 compared to $5.78 in the prior year quarter. The decline in profitability was primarily driven by lower upstream realizations and reduced downstream margins. For the first nine months of 2023, net income was $19.11 billion, down from $29.11 billion in the comparable 2022 period, with earnings per share of $10.14 versus $14.95. The company's upstream segment saw a significant earnings drop due to lower crude oil and natural gas prices, despite increased production in the U.S. driven by the PDC Energy acquisition. Downstream segment earnings also declined, mainly attributed to lower refined product margins. Chevron continues to manage its capital expenditures, investing $11.5 billion in the first nine months of 2023, and returned approximately $8.5 billion to shareholders through dividends during the same period, alongside significant share repurchases. The company also announced its definitive agreement to acquire Hess Corporation, which is subject to customary closing conditions.

Financial Highlights

48 data points
Beta

Revenue

$51.92B

37.7% Gross Margin

Net Income

$6.53B

12.6% Net Margin

EPS (Diluted)

$3.48

Total Assets

$263.93B

Cash & Equivalents

$5.80B

Free Cash Flow

$9.67B

Financial Statements
Beta
Revenue$51.92B
Cost of Revenue$32.33B
Gross Profit$19.59B
SG&A Expenses$1.16B
Operating Expenses$45.34B
Interest Expense$114.00M
Net Income$6.53B
EPS (Basic)$3.48
EPS (Diluted)$3.48
Shares Outstanding (Basic)1.87B
Shares Outstanding (Diluted)1.88B

Key Highlights

  • 1Net income for Q3 2023 was $6.53 billion, down from $11.23 billion in Q3 2022.
  • 2Diluted EPS for Q3 2023 was $3.48, down from $5.78 in Q3 2022.
  • 3Upstream segment earnings decreased significantly year-over-year due to lower commodity prices.
  • 4Downstream segment earnings also declined, primarily due to lower refined product margins.
  • 5Capital expenditures for the first nine months of 2023 were $11.5 billion, an increase from $8.1 billion in the prior year period.
  • 6Chevron declared a quarterly dividend of $1.51 per share, an increase from $1.42 per share in the prior year quarter.
  • 7The company announced a definitive agreement to acquire Hess Corporation.

Frequently Asked Questions

The primary reason for the decrease in net income was lower commodity prices, which led to reduced upstream realizations and lower margins in the downstream segment. Specifically, upstream earnings fell significantly due to lower crude oil and natural gas prices, while downstream earnings were impacted by lower refined product margins.

Chevron's capital expenditures increased to $11.5 billion in the first nine months of 2023, up from $8.1 billion in the same period of 2022. This increase was primarily driven by higher upstream spending in the United States and investments related to the acquisition of a majority stake in ACES Delta, LLC.

Chevron announced a definitive agreement to acquire Hess Corporation. The transaction is subject to customary closing conditions, including regulatory approvals and approval by Hess stockholders. The company expects this acquisition to strengthen its long-term performance.

Chevron's worldwide net oil-equivalent production averaged 3.03 million barrels per day in the first nine months of 2023, slightly higher than the prior year. This increase was primarily due to production growth in the Permian Basin, lower turnaround impacts in Australia, and the acquisition of PDC Energy, Inc.