Chevron Tops Q3 Earnings Forecast as Its U.S. Oil Output Jumps to Record

Chevron Corporation (NYSE: CVX) booked consensus-beating earnings for the third quarter, driven by a record quarterly U.S. production and Permian oil and gas output.

Chevron reported on Friday adjusted earnings of $4.5 billion for Q3, down from $5.7 billion from a year earlier, due to lower margins on refined product sales, lower realizations amid lower oil and gas prices, and the absence of prior-year favorable tax items.

The adjusted earnings per share came in at $2.51 for the third quarter of 2024, down from $3.05 for the same period last year, but higher than the $2.42 EPS expected in an analyst consensus compiled by The Wall Street Journal.

Chevron’s total worldwide net oil-equivalent production rose by 7% from a year ago, primarily due to record production in the Permian Basin and the acquisition and integration of PDC Energy, the U.S. supermajor said.

U.S. net oil-equivalent production jumped by 198,000 barrels per day (bpd) from a year earlier and set a new quarterly record, thanks to record high production in the Permian Basin and the acquisition of PDC, partly offset by hurricane impacts in the U.S. Gulf of Mexico.

In the Gulf of Mexico region, Chevron launched in August production at its $5.7-billion Anchor project, making history with the first-ever successful application of new high-pressure technology for ultra-deep reservoirs.

Chevron cleared in September the Federal Trade Commission’s (FTC) antitrust review of the planned merger with Hess Corporation – a key closing condition for the deal, which has yet to close due to a dispute with Exxon over Hess’s Guyana assets.

During the third quarter, Chevron returned a record $7.7 billion of cash to shareholders, including share repurchases of $4.7 billion and dividends of $2.9 billion, it said.

The company expects to close asset sales in Canada, Congo, and Alaska in the fourth quarter of 2024, as part of its plan to divest $10-15 billion of assets by 2028.

With a consensus-beating profit for Q3, Chevron joins European supermajors BP and Shell, which have also reported better-than-expected earnings despite lower oil prices and weak refining margins.