Chevron misses second-quarter earnings estimates

Chevron Corporation (NYSE: CVX) reported second-quarter earnings that missed analysts’ expectations, weighed down by lower refining margins and weak natural gas prices, as the company announced it was moving its headquarters from San Ramon, California to Houston, Texas.

The U.S. oil and gas giant on Friday reported revenue of $4.4 billion for the second quarter of 2024, or $2.43 per diluted share, compared with revenue of $6.0 billion and earnings per share of $3.20 for the same period in 2023.

Earnings per share in Q2 2024 were below The Wall Street Journal analysts’ consensus of $2.93.

Record oil and gas production in the Permian region and higher U.S. production by Chevron following the addition of PDC Energy have failed to offset low refining margins in the U.S. and globally.

Net U.S. oil equivalent production increased by 353,000 barrels per day from a year earlier, the company said, primarily due to the successful integration of PDC and record-high production in the Permian Basin.

However, U.S. and global downstream earnings were lower year-on-year, primarily due to lower margins on refined product sales.

Chevron shares fell in premarket trading on the New York Stock Exchange Friday morning after unexpected gains.

“This quarter, we delivered solid production, expanded our global exploration portfolio and extended our history of consistent shareholder returns, achieving more than $50 billion in dividends over the past two years,” said Chairman and CEO Mike Wirth.

“Despite recent operational downtime and lower margins, we remain positioned to deliver significant long-term earnings and cash flow growth.”

The default is another headache for Chevron, which is considering buying Hess Corporation in a deal that could be delayed until 2025 due to regulatory scrutiny and an arbitration process with another U.S. giant, Exxon, over Exxon’s right of first refusal to buy Hess’s stake in Exxon’s massive oil projects off the coast of Guyana.

Author: Tsvetana Paraskova for Oilprice.com

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