Chevron Surges with Record Cash Returns and Oil Production Despite Profit Dip
Houston, Texas – February 3, 2024 – Chevron capped off a banner year with record cash returned to shareholders and oil & gas production, despite a slight dip in reported earnings for the fourth quarter of 2023. The energy giant outperformed analyst expectations, highlighting its dominance in the industry.
Key Takeaways:
- Fourth-quarter adjusted earnings: $6.5 billion ($3.45 per share) vs. $7.9 billion ($4.09 per share) in Q4 2022.
- Full-year production: Record highs for both worldwide and U.S. net oil-equivalent production.
- Cash to shareholders:Â Increased by 18% to a record $26 billion for the year.
- 2024 outlook:Â Targeting a 10% increase in Permian production.
Profit Dip Explained:
- Lower upstream realizations (selling prices).
- Decommissioning losses for sold assets.
- U.S. upstream impairment charges.
- Lower margins on refined product sales.
Highlights:
- Despite the profit dip, adjusted earnings surpassed analyst expectations.
- Record production showcases Chevron’s strong operational performance.
- Increased cash returns demonstrate commitment to shareholder value.
- Permian Basin remains a key growth area for Chevron.
Industry Context:
- Chevron joins ExxonMobil and Shell in reporting strong results for 2023, albeit lower than 2022’s record highs.
- Higher oil prices fueled industry profits, but economic concerns raise uncertainty for 2024.
Overall, Chevron’s performance solidifies its position as a leading energy player. While profits dipped slightly, record production and cash returns reflect a successful year. The company’s ambitious growth plans and focus on the Permian Basin indicate continued strength in the coming year.
