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Chevron Corporation is a global energy company that manages investments in subsidiaries and affiliates engaged in integrated energy and chemicals operations. The company is involved in exploring, developing, producing, and transporting crude oil and natural gas, as well as refining crude oil into petroleum products and manufacturing renewable fuels . Chevron's business activities are divided into two main segments: Upstream and Downstream, with the upstream segment being the primary contributor to its earnings .
- Upstream - Focuses on exploring, developing, producing, and transporting crude oil and natural gas. Includes activities related to liquefaction, transportation, and regasification associated with liquefied natural gas (LNG), and carbon capture and storage.
- Downstream - Involves refining crude oil into petroleum products, marketing crude oil, refined products, and lubricants. Also includes manufacturing and marketing renewable fuels, and transporting crude oil and refined products by various means, including pipeline and marine vessels.
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With net debt ticking up in Q3 and considering the volatile commodity markets, how do you plan to balance continued shareholder returns with maintaining a strong balance sheet, especially if commodity prices decline over the next few years?
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Given the advancements in ultra-high pressure and temperature technology in the Gulf of Mexico, can you quantify the potential upside to your longer-term production and resource opportunities, and how might this impact your production targets?
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In light of the challenging regulatory environment in California leading to refinery closures, have you considered shutting down capacity in the state, and how do you anticipate these developments will affect your downstream profitability and operations in the region?
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As major capital projects conclude, such as those in Kazakhstan, do you anticipate a significant decrease in capital expenditures over the next 2-3 years, and how will this influence your growth strategy and free cash flow generation?
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With complex commissioning work still ahead for the TCO start-up and recognizing the risks involved, can you provide specific milestones that will indicate when the project is largely de-risked, and when investors can expect reliable production ramp-up?
Recent developments and announcements about CVX.
Financial Reporting
- Reported Earnings: $3.2 billion ($1.84 per share - diluted), up from $2.3 billion ($1.22 per share - diluted) in Q4 2023.
- Adjusted Earnings: $3.6 billion ($2.06 per share - diluted), down from $6.5 billion ($3.45 per share - diluted) in Q4 2023.
- Total 2024 Earnings: $17.7 billion, a decrease from $21.4 billion in 2023.
- Cash Flow from Operations (CFFO): $8.7 billion in Q4 2024, compared to $12.4 billion in Q4 2023.
- Free Cash Flow: $4.4 billion in Q4 2024, down from $8.1 billion in Q4 2023.
- Production Growth: Worldwide net oil-equivalent production increased by 7% in 2024, with U.S. production up 19%, driven by growth in the Permian Basin.
- Dividend Increase: Chevron announced a 5% increase in its quarterly dividend to $1.71 per share, payable on March 10, 2025.
- Shareholder Returns: A record $27 billion was returned to shareholders in 2024, including $15.2 billion in share repurchases and $11.8 billion in dividends.
- Capital Expenditures (Capex): Total capex for 2024 was $16.4 billion, slightly higher than $15.8 billion in 2023, with increased upstream investments.
- Upstream:
- U.S. upstream earnings improved due to the absence of decommissioning and impairment charges, despite lower realizations and severance costs.
- International upstream earnings declined due to lower realizations and higher operating expenses, partially offset by favorable foreign currency effects.
- Downstream:
- U.S. downstream reported a loss of $348 million in Q4 2024, primarily due to lower margins and higher operating expenses.
- International downstream earnings were lower due to reduced margins and impairments, despite favorable foreign currency effects.
- Project Milestones: Key projects such as the Anchor project in the Gulf of America and the Future Growth Project in Kazakhstan were completed, contributing to production growth.
- Asset Sales: Chevron completed the sale of assets in Canada, Alaska, and the Republic of Congo, generating $7.7 billion in proceeds.
- Hess Corporation Merger: Progressed the acquisition of Hess Corporation, securing stockholder approval and clearing antitrust reviews.
- Carbon Reduction: Achieved operational changes to abate 700,000 tonnes of CO2-equivalent emissions.
Earnings Report
Chevron Corporation (CVX) Fourth Quarter 2024 Earnings Results
Chevron Corporation has released its fourth quarter 2024 earnings results as of January 31, 2025. Below are the key highlights:
Financial Performance
Key Trends and Insights
Operational Highlights
Strategic Developments
Outlook
Chevron continues to focus on cost reductions, capital discipline, and portfolio optimization to position itself for future growth. The company aims to maintain strong shareholder returns while advancing its lower-carbon initiatives.
For further details, visit Chevron's Investor Relations page at www.chevron.com.
Financial Actions
Dividend Policy
Chevron Corporation (CVX) has announced a significant change in its dividend policy. The company has coordinated its quarterly dividend payments with Hess Corporation to ensure that shareholders do not receive double dividends or miss any dividends during the merger process. Specifically, Chevron has committed to declaring and recording quarterly dividends no later than five business days following the one-year anniversary of the corresponding quarter of the previous year. This coordination is part of the merger agreement between Chevron and Hess .