Chevron reports 1Q earnings drop, worldwide production up 12% y-o-y

Chevron Corp.  reported earnings of $5.5 billion for first-quarter 2024, down from $6.6 billion in first-quarter 2023 primarily due to lower margins on refined product sales and lower natural gas realizations, partly offset by higher upstream sales volumes in the US.

Adjusted earnings of $5.4 billion in this year’s first quarter were down from $6.7 billion in the year-ago period.

US upstream earnings of $2.075 billion were higher than first-quarter 2023’s $1.781 billion, primarily due to higher sales volumes, including from legacy PDC assets, partly offset by higher depreciation, depletion, and amortization mainly from higher production, and lower realizations.

International upstream earnings of $3.164 billion were lower than last year’s first quarter earnings of $3.380 billion, primarily due to lower natural gas realizations, partly offset by favorable tax impacts, including the absence of first-quarter 2023 tax charges related to the energy profits levy in the UK, higher liquids realizations, and favorable foreign currency effects.

Upstream

Worldwide production was up 12% from first-quarter 2023 primarily due to the acquisition of PDC Energy Inc. and strong operational performance in the Permian and DJ basins in the US and the Tengizchevroil affiliate in Kazakhstan, partly offset by planned downtime in Nigeria.

US net oil-equivalent production was 1.573 MMboe, up 35% from the year-ago period primarily due to the acquisition of PDC Energy Inc. and higher production in the Permian and DJ basins.

International net oil-equivalent production during the quarter was 1,773 MMboe, down 39,000 b/d from a year earlier primarily due to a planned turnaround in Nigeria and normal field declines, partly offset by stronger operational performance at Tengizchevroil.

Downstream

US downstream earnings of $453 million were lower than first-quarter 2023’s earnings of $977 million primarily due to lower margins on refined product sales and higher operating expenses mainly from planned shutdowns.

Refinery crude unit inputs, including crude oil and other inputs, decreased 6% from the year-ago period primarily due to a planned shutdown at the Pascagoula, Miss., refinery.

Refined product sales were flat compared to the year-ago period.

International downstream earnings of $330 million were lower than the $823 million recorded in first-quarter 2023 primarily due to lower margins on refined product sales.

Refinery crude unit inputs, including crude oil and other inputs, increased 2%, while refined product sales decreased 2% from the year-ago period.