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Chevron announces first quarter 2023 results


These translations are done via Google Translate
  • Reported earnings of $6.6 billion; adjusted earnings of $6.7 billion
  • Cash flow from operations of $7.2 billion; free cash flow of $4.2 billion
  • Shareholder distributions of $6.6 billion, up 65 percent from first quarter 2022

SAN RAMON, Calif.–(BUSINESS WIRE)–Chevron Corporation (NYSE: CVX) today reported earnings of $6.6 billion ($3.46 per share – diluted) for first quarter 2023, compared with $6.3 billion ($3.22 per share – diluted) in first quarter 2022. Included in the current quarter was a $130 million tax charge related to changes in the energy profits levy in the United Kingdom. Foreign currency effects decreased earnings by $40 million. Adjusted earnings of $6.7 billion ($3.55 per share – diluted) in first quarter 2023 compared to adjusted earnings of $6.5 billion ($3.36 per share – diluted) in first quarter 2022. For a reconciliation of adjusted earnings, see Attachment 4.

Earnings & Cash Flow Summary

Unit 1Q 2023 4Q 2022 1Q 2022
Total Earnings / (Loss) $ MM $ 6,574 $ 6,353 $ 6,259
Upstream $ MM $ 5,161 $ 5,485 $ 6,934
Downstream $ MM $ 1,800 $ 1,771 $ 331
All Other $ MM $ (387 ) $ (903 ) $ (1,006 )
Earnings Per Share – Diluted $/Share $ 3.46 $ 3.33 $ 3.22
Adjusted Earnings (1) $ MM $ 6,744 $ 7,850 $ 6,543
Adjusted Earnings Per Share – Diluted (1) $/Share $ 3.55 $ 4.09 $ 3.36
Cash Flow From Operations (CFFO) $ B $ 7.2 $ 12.5 $ 8.1
CFFO Excluding Working Capital (1) $ B $ 9.0 $ 11.5 $ 9.0
(1) See non-GAAP reconciliation in attachments

“We’re delivering strong financial results and increasing cash returned to shareholders,” said Mike Wirth, Chevron’s chairman and chief executive officer. The company’s return on capital employed has been greater than 12 percent for seven consecutive quarters, and the company returned $6.6 billion to shareholders in the first quarter, an increase of 65 percent from last year.

“At the same time, we’re investing more to help grow future energy supplies,” Wirth continued. “We intend to leverage our capital discipline, advantaged assets and financial strength to deliver lower carbon energy to our customers and superior cash distributions to our shareholders,” Wirth concluded. The company increased its dividend per share by approximately 6 percent in the first quarter and recently increased its targeted annual share repurchase rate to $17.5 billion.

Financial and Business Highlights

Unit 1Q 2023 4Q 2022 1Q 2022
Return on Capital Employed (ROCE) % 14.6 % 14.2 % 14.7 %
Capital Expenditures (Capex) $ B $ 3.0 $ 3.8 $ 2.0
Affiliate Capex $ B $ 0.9 $ 1.0 $ 0.7
Free Cash Flow (1) $ B $ 4.2 $ 8.7 $ 6.1
Free Cash Flow ex. working capital (1) $ B $ 6.0 $ 7.7 $ 7.0
Debt Ratio (end of period) % 12.7 % 12.8 % 16.7 %
Net Debt Ratio (1) (end of period) % 4.4 % 3.3 % 10.8 %
Net Oil-Equivalent Production MBOED 2,979 3,011 3,060
(1) See non-GAAP reconciliation in attachments

Financial Highlights

  • First quarter 2023 earnings increased compared to first quarter 2022 primarily due to higher margins on refined product sales, partially offset by lower upstream realizations.
  • Sales and other operating revenues in first quarter 2023 were $48.8 billion, compared to $52.3 billion in the year-ago period primarily due to lower commodity prices.
  • Worldwide net oil-equivalent production was down 3 percent from the year ago quarter primarily on lower international production due to the end of the Erawan concession in Thailand.
  • Capex in the first three months of 2023 was up 55 percent from a year ago primarily due to higher investment in the United States.
  • Free cash flow excluding working capital was lower than a year ago mainly due to higher capex. Over the past two years, the company has generated over $80 billion in cash flow from operations and over $60 billion of free cash flow.
  • Total shareholder distributions were $6.6 billion during the quarter, including dividends of $2.9 billion and share repurchases of $3.75 billion (over 22 million shares repurchased during the quarter). The company expects to repurchase $4.375 billion in shares in second quarter 2023.
  • The company’s Board of Directors declared a quarterly dividend of one dollar and fifty-one cents ($1.51) per share, payable June 12, 2023, to all holders of common stock as shown on the transfer records of the Corporation at the close of business on May 19, 2023.

Business Highlights

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  • Achieved first oil at the Mad Dog 2 project in the Gulf of Mexico.
  • Started crude oil liftings from Venezuela, supplying 8.7 million barrels of crude oil to the U.S. during the first quarter.
  • Winning bids submitted on 75 exploration blocks in Gulf of Mexico lease sale 259, subject to final government approval.
  • Announced an expansion of the Bayou Bend carbon capture and sequestration project in the U.S. Gulf Coast through an acquisition of nearly 100,000 acres of pore space, positioning Bayou Bend to become one of the largest carbon storage projects in the U.S.

Segment Highlights

Upstream

U.S. Upstream Unit 1Q 2023 4Q 2022 1Q 2022
Earnings / (Loss) $ MM $ 1,781 $ 2,618 $ 3,238
Net Oil-Equivalent Production MBOED 1,167 1,192 1,184
Liquids Production MBD 877 895 880
Natural Gas Production MMCFD 1,742 1,789 1,828
Liquids Realization $/BBL $ 59 $ 66 $ 77
Natural Gas Realization $/MCF $ 2.58 $ 4.94 $ 4.10
  • U.S. upstream earnings were lower than a year ago, primarily on lower realizations.
  • Net oil-equivalent production was down slightly from first quarter 2022, primarily due to the Eagle Ford asset sale.
International Upstream Unit 1Q 2023 4Q 2022 1Q 2022
Earnings / (Loss) (1) $ MM $ 3,380 $ 2,867 $ 3,696
Net Oil-Equivalent Production MBOED 1,812 1,819 1,876
Liquids Production MBD 849 852 856
Natural Gas Production MMCFD 5,775 5,799 6,119
Liquids Realization $/BBL $ 69 $ 78 $ 93
Natural Gas Realization $/MCF $ 9.00 $ 10.35 $ 8.87
(1) Includes foreign currency effects $ MM $ (56 ) $ (83 ) $ (144 )
  • International upstream earnings were lower than a year ago primarily due to lower realizations, lower sales volumes, and higher tax charges related to changes in the energy profits levy in the United Kingdom, partially offset by lower operating expenses.
  • Net oil-equivalent production was down 64,000 barrels per day from a year earlier primarily due to the end of the Erawan concession in Thailand.

Downstream

U.S. Downstream Unit 1Q 2023 4Q 2022 1Q 2022
Earnings / (Loss) $ MM $ 977 $ 1,180 $ 486
Refinery Crude Oil Inputs MBD 890 888 915
Refined Product Sales MBD 1,252 1,236 1,217
  • U.S. downstream earnings were higher compared to a year ago primarily due to higher margins on refined product sales, partially offset by higher operating expenses and lower earnings from the 50 percent-owned Chevron Phillips Chemical Company.
  • Refinery crude oil input decreased 3 percent compared to a year ago, primarily due to planned turnaround impacts at the El Segundo, California refinery.
  • Refinery product sales were up 3 percent from a year ago, primarily due to higher renewable fuel sales following the Renewable Energy Group, Inc. acquisition and higher jet fuel demand.
International Downstream Unit 1Q 2023 4Q 2022 1Q 2022
Earnings / (Loss) (1) $ MM $ 823 $ 591 $ (155 )
Refinery Crude Oil Inputs MBD 628 653 619
Refined Product Sales MBD 1,460 1,441 1,327
(1) Includes foreign currency effects $ MM $ 18 $ (112 ) $ 23
  • International downstream earnings were higher compared to a year ago primarily due to higher margins on refined product sales, partially offset by higher operating expenses.
  • Refinery crude oil input increased 1 percent from the year-ago period as refinery runs increased due to higher demand.
  • Refined product sales increased 10 percent from the year-ago period, primarily due to higher demand for jet fuel as restrictions from the pandemic continue to ease.

All Other

All Other Unit 1Q 2023 4Q 2022 1Q 2022
Net charges (1) $ MM $ (387 ) $ (903 ) $ (1,006 )
(1) Includes foreign currency effects $ MM $ (2 ) $ (210 ) $ (97 )
  • All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.
  • Net charges decreased compared to a year ago primarily due to lower stock-based employee benefit costs, higher interest income, lower foreign currency charges and lower pension settlement costs.

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.chevron.com.

 



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