- Chevron’s fourth quarter adjusted earnings per share (EPS) came in at $2.06, missing the estimate of $2.11, and were significantly lower than last year’s $3.45.
- Upstream earnings showed a notable increase, reaching $4.30 billion compared to $1.59 billion last year, surpassing estimates of $4.02 billion.
- The US Upstream segment turned profitable with earnings of $1.42 billion versus a loss of $1.35 billion the previous year. However, this was below an expected $1.86 billion.
- International Upstream earnings were $2.88 billion, a slight decrease of 1.7% from the previous year, but still above the estimated $2.22 billion.
- Chevron posted a downstream loss of $248 million versus a profit of $1.15 billion in the prior year. This contrasted with estimated profits of $215.4 million.
- International downstream earnings plummeted, recording $100 million, down 85% year-on-year.
- Worldwide production slightly decreased by 1.2% to 3,350 mboe/d, aligning closely with estimates of 3,324 mboe/d.
- The US upstream average sales price remained unchanged at $1.62 per Mcf, meeting estimates, while international prices rose by 4.9% to $7.67 per Mcf, exceeding expectations.
- Chevron’s revenues and other income totaled $52.23 billion, outperforming the estimate of $45.77 billion.
- The company increased its quarterly dividend to $1.71 per share, just shy of the projected $1.72.
- Included in the quarterly results were $715 million in severance charges and $400 million in impairment charges.
- Chevron finalized asset sales in Canada, the Republic of Congo, and Alaska, is moving forward with the Hess Corporation acquisition, and aims for $2-3 billion in structural cost reductions by 2026.
- The company anticipates generating about $10 billion in additional free cash flow by 2026.
- Plans are in place to enhance results across its portfolio, focusing on cost savings, and improved returns in the Downstream and Chemicals sectors.
- Chevron emphasizes operational efficiency and free cash flow in the Permian Basin.
“`
Chevron Corp on Smartkarma
Analyst coverage of Chevron Corp on Smartkarma reveals a mixed sentiment from different analysts. Suhas Reddy, in the report “[Pre Earnings Options Flash] Chevron’s Options Activity Reflects Market Caution Ahead of Q4 Earnings,” predicts a decline in Chevron’s Q4 earnings, with calls at higher strikes and puts at lower strikes, reflecting market caution. Similarly, Suhas Reddy‘s “[Earnings Preview] Lower Oil Prices and Refining Margins to Weigh on Chevron’s Earnings” anticipates a drop in revenue and EPS, with restructuring charges impacting earnings and a decrease in Capex for 2025.
Contrasting this, Baptista Research takes a bullish stance in “Chevron Corporation Unveils Aggressive $3 Billion Cost-Cutting Plan,” highlighting positive operational achievements despite financial headwinds. Suhas Reddy‘s “[Earnings Review] Chevron Surpasses Expectations on Higher Output and Improved Efficiency” commends Chevron’s Q3 performance, surpassing expectations with record output and significant returns to shareholders. However, in another report, Suhas Reddy‘s “[Pre Earnings Options Flash] Chevron’s OI PCR Shows Neutral Sentiment Amid High Implied Volatility,” indicates a bearish outlook for Chevron due to lower crude oil prices and high volatility.
A look at Chevron Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at Chevron Corp‘s Smartkarma Smart Scores, the company seems to have a positive long-term outlook ahead. With strong scores of 4 in Value, Dividend, Growth, and Momentum, Chevron is positioned well across various key factors. This indicates that the company is valued attractively, offers a good dividend yield, shows potential for growth, and has strong momentum in the market.
Although scoring slightly lower with a 3 in Resilience, Chevron still demonstrates stability and the ability to withstand challenges. Overall, Chevron Corporation, an integrated energy company with diverse operations globally, appears to be a promising investment option with its favorable Smart Scores across important metrics in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
