Chevron Corp. earned $6.5 billion for third-quarter 2023, down from $11.2 billion in the same period last year, primarily due to lower upstream realizations and lower margins on international refined product sales.
Included in the current quarter were a one-time tax benefit of $560 million in Nigeria and pension settlement costs of $40 million. Foreign currency effects increased earnings by $285 million. Adjusted earnings of $5.7 billion in third-quarter 2023 compared with adjusted earnings of $10.8 billion in third-quarter 2022. Sales and other operating revenues in third-quarter 2023 were $51.9 billion, down from $63.5 billion in the year-ago period.
Capital expenditure in third-quarter 2023 was up over 50% from the year-ago period. This includes about $400 million of inorganic spend largely due to the acquisition of a majority stake in ACES Delta LLC, but excludes the acquisition of PDC Energy Inc. (OGJ Online, May 22, 2023).
Upstream
Chevron’s upstream earnings were $5.7 billion for third-quarter 2023, down from $9.3 billion recorded in the previous year’s third quarter, reflecting lower commodity prices. The company’s worldwide net oil-equivalent production was up 4% from the year-ago quarter primarily due to the acquisition of PDC Energy.
US net oil-equivalent production was up 20% from third-quarter 2022 and set a new quarterly record, primarily due to the acquisition of PDC Energy, which added 179,000 boe/d during the quarter, and net production increases in the Permian basin. US upstream earnings were lower than a year ago, primarily on lower realizations partially offset by earnings associated with PDC Energy.
International net oil-equivalent production was down 112,000 b/d from a year earlier primarily due to higher impacts from turnarounds, shutdowns and normal field declines. International upstream earnings were lower than a year ago primarily due to lower realizations and lower sales volumes, partially offset by a favorable one-time tax benefit of $560 million in Nigeria and foreign currency effects.
Downstream
The downstream segment turned a profit of $1.68 billion, a decrease from the $2.53 billion recorded a year ago. The decline was primarily attributed to significantly lower performance in international markets.
US downstream earnings were $1.37 billion during the quarter, compared with $1.29 billion a year ago primarily due to higher margins on refined product sales. Refinery crude oil inputs increased 23% from the year-ago period primarily due to the absence of 2022 turnaround activity at the Richmond, Calif., refinery. Refinery product sales were up 4% from the year-ago period, primarily due to higher demand for jet fuel.
International downstream earnings were $307 million, down from $1.24 billion a year ago primarily due to lower margins on refined product sales and lower favorable foreign currency effects. Refinery crude oil inputs decreased 4% from the year-ago period as refinery runs decreased due to planned shutdowns. Refinery product sales were flat relative to the year-ago period due to higher jet fuel sales resulting from increased air travel offset by lower demand for gasoline.