Chevron surprised the markets Sunday, releasing earlier-than-expected second-quarter numbers and announcing the oil giant's chief financial officer is stepping down in 2024. CVX and ExxonMobil edged down Wednesday.
Chevron topped Wall Street profit estimates, even as earnings dropped nearly 50%. The U.S. oil major also announced it waived the mandatory retirement age of 65 for Chief Executive Officer Mike Wirth, 62, and that Chief Financial Offer Pierre Breber will retire next year.
Eimear Bonner, currently the vice president and chief technology officer at Chevron, will succeed Breber on March 1, 2024, according to the company.
Chevron earnings per share fell 47% to $3.08. Analysts expected earnings of $2.91 per share. Chevron will still release full second-quarter results on Friday, when ExxonMobil also reports.
CVX edged down 0.8% to 161.33 early Wednesday during market trade. On Tuesday, Chevron stock moved up 0.4% to 162.47. On Monday, CVX gained around 2% t 161.82. The Dow Jones component is down 12% in 2023.
U.S. crude oil futures were $78.97 per barrel Wednesday, right around a three-month high it hit earlier in the week as prospects of tighter global supplies and stronger demand in China push up prices.
Last year, as the U.S. economy bounced from Covid pandemic retreat to inflation-driven growth, Russia invaded Ukraine in February. The combination sent oil, gasoline and natural gas prices soaring. This resulted in Chevron, Exxon Mobil and other energy stocks leading the market, with the companies racking up record profits.
Chevron Earnings Details
The energy giant announced Sunday in its second-quarter "performance highlights" that production in the Permian Basin set a quarterly record. Chevron reported production totaled 772,000 barrels of oil equivalent per day and that Permian production is track with full-year guidance.
Meanwhile, Chevron's net oil equivalent production so far in 2023 is running flat vs. 2022, totaling 2.9 million barrels of oil equivalent per day.
Chevron added it returned $7.2 billion to shareholders in Q2, with $2.8 billion in dividends and $4.4 billion in stock purchases.
The company also said it expects its $6.3 billion deal to acquire PDC Energy to close in August.
In Q1, Chevron topped Wall Street estimates, even as revenue slipped compared to a year ago. Earnings gained 6% to $3.55 per share in the first quarter. Sales dropped 6% to $50.79 billion. Higher margins on refined product sales drove the earning beat, the company said, partially offset by lower oil prices and rising production costs.
Chevron reported worldwide net oil-equivalent production of 2.98 million oil-equivalent barrels per day in Q1. That's down 3% compared to last year, primarily due to lower international production, the company said.
ExxonMobil Earnings On The Way
Estimates: Analysts predict Exxon earnings slipping 50% to $2.03 per share with revenue decreasing 30% to $81.8 billion.
Results: Check early Friday.
ExxonMobil stock edged down 0.5% to 105.11 Wednesday. Shares ended Tuesday up a fraction to 105.68. On Monday, XOM gained 1.6% to 105.52. XOM closed Friday trading at 103.89. Shares are currently in consolidation and sitting around 15% below a 119.92 buy point, according to MarketSmith analysis.
In Q1, ExxonMobil earnings jumped 36% to $2.83 per share with revenue slipping 4% to $86.56 billion.
The company's net production in the first quarter was 3.8 million oil-equivalent barrels per day up 4% from last year. Meanwhile, ExxonMobil's upstream earnings totaled $6.5 billion in Q1, a 20% drop compared to the fourth-quarter 2022, but a 45% jump from last year.
Exxon reported the main drivers of this sequential quarterly drop was lower prices, with crude and natural gas realizations down 10% and 23%, respectively.
ExxonMobil stock has a 49 Composite Rating of 99. XOM shares have a 31 Relative Strength Rating and a 76 EPS Rating.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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