Chevron Earnings Preview

Dow component Chevron (NYSE: CVX), the second-largest U.S. oil company, reports fourth-quarter results before the bell Friday morning and analysts are expecting a profit of $2.85 per share on revenue of $71 billion. In the third quarter, Chevron earned $3.69 a share on revenue of $64.4 billion.

Fourth-quarter EPS estimates range from $2.62 to $3.07 with revenue estimates ranging from $47.63 billion to $98.3 billion. The consensus estimate for Chevron's fourth-quarter EPS was $3.20 60 days ago and $3.30 a month ago.

Analysts are speculating Chevron's fourth-quarter profit from its exploration and production activities will be in line with the third-quarter numbers, but the company's refining results are expected to be breakeven in the fourth quarter. Chevron's third-quarter refining results were helped by assets sales, none of which took place in the fourth quarter.

"Due to its integrated nature, Chevron is particularly susceptible to the downside risk from any weakness in the global economy," Zacks Investment Research said of Chevron.

Expect Chevron to update investors on its various international woes, including Nigeria and Brazil. Speaking of Brazil, a prosecutor there said on Thursday plans to file criminal charges against Chevron Corp and some of its local managers within weeks related to a November offshore oil spill, according to Reuters. That goes along with an $11 billion suit and millions of dollars in fines the U.S. oil major is facing in Brazil.

Transocean (NYSE: RIG), the company whose rig was used by Chevron, is also expected to be charged, Reuters reported.

The dividend: Chevron is currently yielding 3% and while the company has a dividend increase streak that is approaching three decades, it did raise its dividend twice last year so another hike is probably further off this year.