Chevron Corporation (NYSE: CVX) today reported earnings of $2.0
billion ($1.03 per share – diluted) for third quarter 2017,
compared with $1.3 billion ($0.68 per share – diluted) in the third
quarter of 2016. Included in the quarter was a gain on an asset
sale of $675 million and an asset write-off of $220 million.
Foreign currency effects decreased earnings in the 2017 third
quarter by $112 million, compared with an increase of $72 million a
year earlier.
Sales and other operating revenues in third quarter 2017 were
$34 billion, compared to $29 billion in the year-ago period.
Earnings Summary
Three Months Nine Months Ended Sept. 30
Ended Sept. 30 Millions of dollars
2017 2016
2017 2016 Earnings by Business Segment
Upstream $489 $454 $2,859 $(3,467 )
Downstream 1,814 1,065 3,935 3,078 All Other (351 )
(236 ) (710 ) (523 )
Total (1)(2) $1,952
$1,283 $6,084
$(912 ) (1) Includes foreign
currency effects $(112 ) $72 $(351 ) $32 (2) Net income (loss)
attributable to Chevron Corporation (See Attachment 1)
“We continue to see improvement in the underlying pattern of
earnings and cash flow,” said Chairman and CEO John Watson.
“Cash flow is at a positive inflection point, with oil and gas
production increasing and capital spending falling,” Watson added.
“We’re completing projects that have been under construction and
ramping up production, notably at our Gorgon LNG Project in
Australia. And our shale and tight rock drilling activity in the
Permian Basin is exceeding expectations.”
“We expect this pattern to continue,” Watson commented. “Earlier
this month, we announced first LNG production from our Wheatstone
LNG development in Australia.”
UPSTREAM
Worldwide net oil-equivalent production was 2.72 million barrels
per day in third quarter 2017, compared with 2.51 million barrels
per day from a year ago.
U.S. Upstream
Three Months Nine Months Ended Sept. 30
Ended Sept. 30 Millions of dollars
2017 2016
2017 2016 Earnings $(26 )
$(212 ) $(48 ) $(2,175 )
U.S. upstream operations incurred a loss of $26 million in third
quarter 2017, compared with a loss of $212 million from a year
earlier. The improvement reflected higher crude oil
realizations.
The company’s average sales price per barrel of crude oil and
natural gas liquids was $42 in third quarter 2017, up from $37 a
year earlier. The average sales price of natural gas was $1.80 per
thousand cubic feet in third quarter 2017, compared with $1.89 in
last year’s third quarter.
Net oil-equivalent production of 681,000 barrels per day in
third quarter 2017 was down 17,000 barrels per day from a year
earlier. Production increases from shale and tight properties in
the Permian Basin in Texas and New Mexico, and base business in the
Gulf of Mexico, were more than offset by the impact of asset sales
of 67,000 barrels per day, and normal field declines. The net
liquids component of oil-equivalent production in third quarter
2017 increased 1 percent to 525,000 barrels per day, while net
natural gas production decreased 13 percent to 932 million cubic
feet per day primarily as a result of asset sales.
International Upstream
Three Months Nine Months Ended Sept. 30
Ended Sept. 30 Millions of dollars
2017 2016
2017 2016 Earnings* $515
$666 $2,907
$(1,292 ) *Includes foreign currency effects $(164 )
$85 $(441 ) $116
International upstream operations earned $515 million in third
quarter 2017, compared with $666 million a year ago. The decrease
in earnings was mainly due to higher depreciation expense including
the effect of catch-up depreciation for our Bangladesh operations
that we no longer intend to sell and an asset write-off. Also
contributing were higher tax expenses and the absence of an Ecuador
arbitration award. More than offsetting these items were higher
crude oil and natural gas realizations, higher natural gas and
crude oil sales volumes, and higher equity income from the absence
of a TCO royalty expense. Foreign currency effects had an
unfavorable impact on earnings of $249 million between periods.
The average sales price for crude oil and natural gas liquids in
third quarter 2017 was $48 per barrel, up from $41 a year earlier.
The average price of natural gas was $4.76 per thousand cubic feet
in the quarter, compared with $4.18 in last year’s third
quarter.
Net oil-equivalent production of 2.04 million barrels per day in
third quarter 2017 was up 221,000 barrels per day from a year
earlier. Production increases from major capital projects,
primarily Gorgon and Angola LNG, and lower planned turnaround
effects at Tengizchevroil, were partially offset by production
entitlement effects in several locations and normal field declines.
The net liquids component of oil-equivalent production increased 5
percent to 1.19 million barrels per day in the 2017 third quarter,
while net natural gas production increased 25 percent to 5.05
billion cubic feet per day.
DOWNSTREAM
U.S. Downstream
Three Months Nine Months Ended Sept. 30
Ended Sept. 30 Millions of dollars
2017 2016
2017
2016 Earnings $640
$523 $1,743 $1,307
U.S. downstream operations earned $640 million in third quarter
2017, compared with earnings of $523 million a year earlier. The
increase in earnings was primarily due to higher margins on refined
product sales.
Refinery crude oil input in third quarter 2017 decreased 4
percent from the year-ago period to 931,000 barrels per day.
Refined product sales of 1.23 million barrels per day decreased 2
percent from third quarter 2016. Branded gasoline sales of 540,000
barrels per day decreased 2 percent from the 2016 period. Both
refinery crude oil input and refined product sales were lower due
to divestment of the Hawaii refining and marketing assets in fourth
quarter 2016.
International Downstream
Three Months Nine Months Ended Sept. 30
Ended Sept. 30 Millions of dollars
2017 2016
2017 2016 Earnings*
$1,174 $542 $2,192
$1,771 *Includes foreign currency effects $15
$(4 ) $(27 ) $(78 )
International downstream operations earned $1.17 billion in
third quarter 2017 , compared with $542 million a year earlier. The
increase in earnings was largely due to higher gains on asset
sales, primarily from the sale of the company’s Canadian refining
and marketing assets. Higher operating expenses and lower margins
on refined product sales were partially offsetting. Foreign
currency effects had a favorable impact on earnings of $19 million
between periods.
Refinery crude oil input of 801,000 barrels per day in third
quarter 2017 increased 11,000 barrels per day from the year-ago
period mainly due to crude unit optimization and lower maintenance
at the company’s affiliate, Singapore Refining Company.
Total refined product sales of 1.55 million barrels per day in
third quarter 2017 were up 6 percent from the year-ago period,
primarily due to higher diesel and jet fuel sales.
ALL OTHER
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30 Millions
of dollars
2017 2016
2017 2016 Net Charges*
$(351 ) $(236 ) $(710 )
$(523 ) *Includes foreign currency effects $37
$(9 ) $117 $(6 )
All Other consists of worldwide cash management and debt
financing activities, corporate administrative functions, insurance
operations, real estate activities and technology companies.
Net charges in third quarter 2017 were $351 million, compared
with $236 million a year earlier. The change between periods was
mainly due to higher tax items and higher corporate charges.
Partially offsetting was lower interest expense. Foreign currency
effects decreased net charges by $46 million between periods.
CASH FLOW FROM OPERATIONS
Cash flow from operations in the first nine months of 2017 was
$14.3 billion, compared with $9.0 billion in the corresponding 2016
period. Excluding working capital effects, cash flow from
operations in 2017 was $15.0 billion, compared with $10.2 billion
in the corresponding 2016 period.
CAPITAL AND EXPLORATORY EXPENDITURES
Capital and exploratory expenditures in the first nine months of
2017 were $13.4 billion, compared with $17.2 billion in the
corresponding 2016 period. The amounts included $3.3 billion in
2017 and $2.7 billion in 2016 for the company’s share of
expenditures by affiliates, which did not require cash outlays by
the company. Expenditures for upstream represented 89 percent of
the companywide total in the first nine months of 2017.
NOTICE
Chevron’s discussion of third quarter 2017 earnings with
security analysts will take place on Friday, October 27, 2017, at
8:00 a.m. PDT. A webcast of the meeting will be available in a
listen-only mode to individual investors, media, and other
interested parties on Chevron’s Web site at www.chevron.com under the “Investors”
section. Additional financial and operating information will be
contained in the Earnings Supplement that will be available under
“Events and Presentations” in the “Investors” section on the Web
site.
As used in this press release, the term “Chevron” and such terms
as “the company,” “the corporation,” “our,” “we” and “us” may refer
to Chevron Corporation, one or more of its consolidated
subsidiaries, or to all of them taken as a whole. All of these
terms are used for convenience only and are not intended as a
precise description of any of the separate companies, each of which
manages its own affairs.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This press release contains forward-looking statements relating
to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum,
chemicals and other energy-related industries. Words or phrases
such as “anticipates,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “positions,” “pursues,” “may,” “could,” “should,”
“budgets,” “outlook,” “trends,” ”guidance,” “focus,” “on schedule,”
“on track,” “goals,” “objectives,” “strategies,” “opportunities,”
and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties
and other factors, many of which are beyond the company’s control
and are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in such forward-looking statements. The reader should not place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Unless legally required,
Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
marketing and chemicals margins; the company's ability to realize
anticipated cost savings and expenditure reductions; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; technological developments; the
results of operations and financial condition of the company's
suppliers, vendors, partners and equity affiliates, particularly
during extended periods of low prices for crude oil and natural
gas; the inability or failure of the company’s joint-venture
partners to fund their share of operations and development
activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats and terrorist acts, crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries, or other natural or human causes beyond its
control; changing economic, regulatory and political environments
in the various countries in which the company operates; general
domestic and international economic and political conditions; the
potential liability for remedial actions or assessments under
existing or future environmental regulations and litigation;
significant operational, investment or product changes required by
existing or future environmental statutes and regulations,
including international agreements and national or regional
legislation and regulatory measures to limit or reduce greenhouse
gas emissions; the potential liability resulting from other pending
or future litigation; the company’s future acquisition or
disposition of assets or shares or the delay or failure of such
transactions to close based on required closing conditions; the
potential for gains and losses from asset dispositions or
impairments; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes, changes in fiscal terms
or restrictions on scope of company operations; foreign currency
movements compared with the U.S. dollar; material reductions in
corporate liquidity and access to debt markets; the effects of
changed accounting rules under generally accepted accounting
principles promulgated by rule-setting bodies; the company's
ability to identify and mitigate the risks and hazards inherent in
operating in the global energy industry; and the factors set forth
under the heading “Risk Factors” on pages 20 through 22 of the
company’s 2016 Annual Report on Form 10-K. Other unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.
Attachment 1
CHEVRON CORPORATION - FINANCIAL REVIEW (Millions of
Dollars, Except Per-Share Amounts)
CONSOLIDATED
STATEMENT OF INCOME
(unaudited)
Three Months Nine Months Ended
September 30 Ended September 30 REVENUES AND OTHER
INCOME
2017
2016 2017 2016 Sales and other operating
revenues *
$ 33,892 $ 29,159
$ 98,293 $
80,073 Income from equity affiliates
1,036 555
3,502
1,883 Other income
1,277 426
2,311 1,019
Total Revenues and Other Income
36,205
30,140
104,106 82,975
COSTS AND OTHER
DEDUCTIONS Purchased crude oil and products
18,776
15,842
54,607 42,345 Operating, selling, general and
administrative expenses
6,175 5,775
17,354 18,264
Exploration expenses
239 258
508 842 Depreciation,
depletion and amortization
5,109 4,130
14,614 15,254
Taxes other than on income *
3,213 2,962
9,149 8,799
Interest and debt expense
35 64
134 143
Total Costs and Other Deductions 33,547 29,031
96,366 85,647
Income (Loss) Before Income Tax
Expense 2,658 1,109
7,740 (2,672 ) Income tax
expense (benefit)
672 (192 )
1,589 (1,803 )
Net
Income (Loss) 1,986 1,301
6,151 (869 ) Less: Net
income attributable to noncontrolling interests
34 18
67 43
NET INCOME (LOSS) ATTRIBUTABLE TO
CHEVRON CORPORATION
$ 1,952 $ 1,283
$ 6,084 $ (912 )
PER-SHARE OF COMMON STOCK Net Income (Loss)
Attributable to Chevron Corporation - Basic $
1.03 $ 0.68
$ 3.23 $ (0.49 )
- Diluted
$ 1.03 $ 0.68
$ 3.21 $ (0.49 )
Dividends $ 1.08 $ 1.07
$ 3.24 $
3.21
Weighted Average Number of Shares Outstanding
(000's) - Basic 1,882,650 1,873,649
1,881,026 1,871,813
- Diluted 1,895,879
1,883,342
1,894,764 1,871,813 * Includes excise,
value-added and similar taxes.
$ 1,867 $ 1,772
$ 5,315 $ 5,208
Attachment 2
CHEVRON CORPORATION - FINANCIAL REVIEW (Millions of
Dollars) (unaudited)
EARNINGS BY MAJOR
OPERATING AREA
Three Months Nine Months Ended September 30
Ended September 30 2017 2016 2017
2016 Upstream United States
$ (26 ) $
(212 )
$ (48 ) $ (2,175 ) International
515 666
2,907 (1,292 ) Total
Upstream
489 454
2,859 (3,467 )
Downstream United States
640 523
1,743 1,307
International
1,174 542
2,192
1,771 Total Downstream
1,814 1,065
3,935 3,078 All Other (1)
(351 )
(236 )
(710 ) (523 )
Total (2) $
1,952 $ 1,283
$ 6,084 $
(912 )
SELECTED BALANCE
SHEET ACCOUNT DATA
Sep 30, 2017 Dec 31, 2016 Cash and Cash
Equivalents
$ 6,641 $
6,988 Marketable
Securities
$ 13 $
13 Total Assets
$
255,160 $
260,078 Total Debt
$ 41,972 $
46,126 Total Chevron Corporation Stockholders' Equity
$ 146,713 $
145,556 Nine Months
Ended September 30
CASH FLOW FROM
OPERATIONS
2017 2016 Net Cash Provided by Operating Activities
$ 14,285 $ 8,983 Net Increase in Operating Working
Capital
$ (695 ) $ (1,266 ) Net Cash Provided
by Operating Activities Excluding Working Capital
$
14,980 $ 10,249
Three Months Nine
Months Ended September 30 Ended September 30
CAPITAL AND
EXPLORATORY EXPENDITURES (3)
2017 2016 2017 2016 United
States Upstream
$ 1,201 $ 990
$
3,406 $ 3,470 Downstream
367 357
1,049 1,110
Other
63 62
132 137
Total United States
1,631 1,409
4,587 4,717
International
Upstream
2,715 3,649
8,501 12,157 Downstream
110 115
297 290 Other
- 2
1 3
Total International 2,825
3,766
8,799 12,450
Worldwide $ 4,456 $ 5,175
$ 13,386 $ 17,167
(1) Includes worldwide cash management and
debt financing activities, corporate administrative functions,
insurance operations, real estate activities, and technology
companies.
(2) Net Income (Loss) Attributable to Chevron Corporation (See
Attachment 1) (3) Includes interest in affiliates: United States
$ 130 $ 237
$ 476 $ 805 International
984 753
2,776 1,888 Total
$ 1,114 $ 990
$ 3,252
$ 2,693
Attachment 3
CHEVRON CORPORATION - FINANCIAL REVIEW
Three Months Nine Months
OPERATING
STATISTICS (1)
Ended September 30 Ended September 30 NET LIQUIDS
PRODUCTION (MB/D): (2) 2017 2016
2017 2016 United States
525 519
520 503
International
1,194 1,142
1,206 1,207
Worldwide 1,719 1,661
1,726 1,710
NET NATURAL GAS PRODUCTION (MMCF/D): (3) United
States
932 1,077
988 1,144 International
5,053
4,036
5,001 4,009
Worldwide 5,985 5,113
5,989 5,153
TOTAL NET OIL-EQUIVALENT PRODUCTION
(MB/D): (4) United States
681 698
684 694
International
2,036 1,815
2,040 1,875
Worldwide 2,717 2,513
2,724 2,569
SALES OF NATURAL GAS (MMCF/D): United States
3,455
3,263
3,288 3,408 International
4,978 4,306
5,018 4,455
Worldwide 8,433 7,569
8,306
7,863
SALES OF NATURAL GAS LIQUIDS (MB/D): United
States
137 164
142 145 International
90 67
94 82
Worldwide 227 231
236 227
SALES OF REFINED PRODUCTS (MB/D): United States
1,225
1,244
1,206 1,239 International (5)
1,556 1,469
1,484 1,451
Worldwide 2,781 2,713
2,690
2,690
REFINERY INPUT (MB/D): United States
931
970
924 960 International
801 790
760 784
Worldwide 1,732 1,760
1,684 1,744 (1)
Includes interest in affiliates. (2) Includes net production of
synthetic oil: Canada
56 58
52 50 Venezuela Affiliate
29 29
29 28 (3) Includes natural gas consumed in
operations (MMCF/D): United States
34 46
37 61
International
545 435
523 431
(4) Oil-equivalent production is the sum
of net liquids production, net natural gas production and synthetic
production. The oil-equivalent gas conversion ratio is 6,000 cubic
feet of natural gas = 1 barrel of crude oil.
(5) Includes share of affiliate sales (MB/D):
369 391
360 374
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171027005145/en/
Chevron CorporationMelissa Ritchiemritchie@chevron.com
Chevron (NYSE:CVX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chevron (NYSE:CVX)
Historical Stock Chart
From Apr 2023 to Apr 2024