Chevron Q3 Results: Earnings Miss On Weak Upstream Performance, Lower Commodity Prices Curbs Sales

Oil giant Chevron Corp  CVX reported Q3 FY23 total revenues and other income of $54.1 billion, beating the consensus of $51.44 billion.

Sales and other operating revenues fell to $51.9 billion from $63.5 billion a year ago, mainly on lower commodity prices.

Worldwide net oil-equivalent production rose 4% Y/Y, primarily due to the acquisition of PDC Energy, Inc.

Adjusted net earnings were $5.72 billion, with Adjusted EPS being $3.05 (down from $5.56), missing the consensus of $3.75.

Q3 earnings included a one-time tax benefit of $560 million in Nigeria and pension settlement costs of $40 million.

Lower upstream realizations and decreased margins on refined product sales negatively impacted earnings.

U.S. upstream earnings declined Y/Y, primarily on lower realizations. International upstream earnings were down Y/Y due to lower realizations and sales volumes.

U.S. downstream earnings were higher Y/Y, led by increased margins on refined product sales. Meanwhile, International downstream earnings were lower Y/Y due to weak margins on refined product sales and a decline in favorable foreign currency impacts.

Operating cash flow totaled $9.7 billion, compared to $15.3 billion a year ago. Free cash flow was $5.0 billion.

Capital expenditure stood at $4.7 billion in the quarter. CVX held cash and equivalents of $5.9 billion as of September 30, 2023.

Dividend: The Board of Directors declared a quarterly dividend per share of $1.51, payable on December 11, 2023, to shareholders of records as of November 17, 2023.

In Q3, CVX repurchased shares of $3.4 billion and paid dividends of $2.9 billion. The company sees share Q4 repurchases of $3 billion +/- 20%.

This month, CVX penned a deal to acquire Hess Corp HES for $53 billion or $171 per share in an all-stock transaction.

Related: Chevron's Acquisition Of Hess Corp. Sends Ripples Through Energy Sector: Reasons Behind Stock Price Dip

Price Action: CVX shares are trading lower by 2.36% at $151.10 on the last check Friday.