Chevron (CVX) Q3 2024 Earnings
Adjusted EPS excludes foreign currency effects that decreased earnings by $44 million; no special items in 3Q 2024. GAAP diluted EPS was $2.48.
How Did CVX Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: +6.41%.
Did CVX Beat Earnings? Q3 2024 Results
Yes. Chevron reported Q3 2024 earnings of $2.51 a share on Nov 1, 2024, beating the $2.43 consensus estimate by 3.3%. Revenue was $50.7B against a $49.0B estimate.
Chevron posted a stronger-than-expected third quarter despite year-over-year earnings pressure, with adjusted EPS of $2.51 beating the $2.43 consensus by 3.29% and revenue of $50.67 billion clearing estimates by 3.44%, even as sales fell 2.4% from a year ago. The headline beat masked a meaningful earnings decline driven by sharply weaker U.S. refining margins, with U.S. downstream profit collapsing to $146 million from $1.38 billion in the prior-year quarter, and the absence of $520 million in net favorable special items recorded a year earlier. On the brighter side, worldwide net oil-equivalent production rose 7% year over year to 3,364 thousand barrels per day, with U.S. and Permian Basin output setting quarterly records helped by the PDC Energy acquisition. Chevron returned $7.70 billion to shareholders in the period, including $4.70 billion in buybacks. Looking ahead, the company is targeting Gulf of Mexico production of 300,000 barrels per day by 2026 and $2 to $3 billion in structural cost reductions by end of 2026, while the pending Hess merger cleared FTC antitrust review with Stabroek arbitration remaining the key closing risk.
- Worldwide net oil-equivalent production up 7% YoY to 3,364 MBOED
- Record U.S. and Permian Basin quarterly production; PDC Energy acquisition contribution
- Lower margins on refined product sales and lower realizations reduced earnings
- Absence of prior-year favorable tax items and foreign currency effects in International Upstream
- U.S. Downstream earnings fell to $146 million from $1,376 million on weaker refining margins
- International Downstream earnings rose to $449 million from $307 million on higher margins
- Hurricane impacts reduced U.S. Gulf of Mexico production by 17,000 barrels per day
- Cash flow from operations of $9.7 billion aided by higher equity affiliate dividends and favorable working capital
“We delivered strong financial and operational results, started up key projects in the U.S. Gulf of Mexico and returned record cash to shareholders this quarter.”
Chevron CEO, on the earnings call
What Was Chevron's Outlook in Q3 2024?
Chevron expects key project start-ups, combined with additional start-ups through 2025, to grow U.S. Gulf of Mexico production to 300,000 barrels of net oil-equivalent per day by 2026. It expects to close asset sales in Canada, Congo and Alaska in Q4 2024 as part of a plan to divest $10-15 billion of assets by 2028. The company is targeting $2-3 billion of structural cost reductions from 2024 levels by the end of 2026. The $6.5 billion Canadian asset sale is expected to close in Q4 2024, and the Hess merger has cleared FTC antitrust review.
CVX YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $50.7B | $51.9B | −2.4% |
| Net Income | $4.5B | $6.5B | −31.2% |
Figures from SEC filings and company reports. Not investment advice.