Chevron Corporation Q3 2024 Earnings Report

Chevron Corporation (NYSE: CVX) announced robust earnings for the third quarter of 2024, reporting profits of $4.5 billion, or $2.48 per share. The company's financial results were driven by a year-over-year increase in worldwide production and record cash returns to shareholders. CEO Mike Wirth emphasized the operational success, particularly in the Permian Basin and key international facilities, alongside strategic plans for asset divestments and cost reductions.

Key Takeaways

• Earnings: Chevron's Q3 2024 earnings reached $4.5 billion ($2.48 per share) with a 7% increase in worldwide production.
• Shareholder Returns: Record cash returns to shareholders included $4.7 billion in share repurchases, with plans for $4 to $4.75 billion in the next quarter.
• Production Growth: Gulf of Mexico production is expected to grow to 300,000 barrels per day by 2026.
• Asset Sales: Asset sales in Canada, Alaska, and Congo are projected to generate approximately $8 billion before taxes.
• Cost Reductions: Chevron aims for $2 to $3 billion in structural cost reductions by the end of 2026.
• Technology Advancements: Successful implementation of high-pressure technology in the Gulf of Mexico and turnarounds at Tengiz and Gorgon facilities.

Company Outlook

• Chevron anticipates full-year average production growth at the top end of the 4% to 7% guidance range.
• The CEO reaffirmed a commitment to a $17.5 billion share repurchase program despite market volatility.

Market Reaction

While some bearish highlights include uncertainty from the Hess acquisition affecting stock performance, bullish highlights showcased strong well performance in New Mexico's Delaware Basin and advancements in technology in the Gulf of Mexico.

Conclusion

Chevron's third-quarter earnings call demonstrated a company solidly positioned financially, with strategic initiatives focused on sustaining growth and maximizing shareholder value, even amidst operational challenges and market uncertainties.