Chevron’s third-quarter earnings down $2 billion from year-ago quarter

Chevron Corp. had third-quarter 2024 earnings of $4.5 billion, down from $6.5 billion in the same quarter of 2023. Foreign currency effects reduced earnings by $44 million. Adjusted earnings in third-quarter 2024 were $4.5 billion, compared to $5.7 billion in the same quarter of 2023.

The decline in third-quarter 2024 earnings was primarily due to lower margins on refined product sales, lower realizations, and the absence of favorable tax items from the prior year.

Worldwide net oil-equivalent production increased by 7% from the previous year, driven by record output in the Permian basin and the acquisition of PDC Energy Inc. (PDC) (OGJ Online, May 22, 2023).

Capital expenditures in third-quarter 2024 decreased year-on-year (y-o-y) due to the previous year's acquisition of a majority stake in ACES Delta LLC. Cash flow from operations was consistent with the previous year, as lower earnings and a one-time payment for ceased operations were offset by higher dividends from equity affiliates and favorable working capital effects.

The company returned a record $7.7 billion of cash to shareholders during the quarter, comprising $4.7 billion in share repurchases and $2.9 billion in dividends. The board declared a quarterly dividend of $1.63 per share, payable on Dec.10, 2024, to shareholders of record at the close of business on Nov. 18, 2024.

US upstream earnings were slightly lower than the previous year due to lower realizations and increased depreciation, depletion, and amortization. This was largely offset by higher sales volumes and reduced operating expenses. US net oil-equivalent production increased by 198,000 b/d from a year prior, setting a new quarterly record, primarily due to heightened production in the Permian basin and the acquisition of PDC. However, this was partly offset by hurricane impacts in the US Gulf of Mexico, reducing production by 17,000 b/d.

International upstream earnings were lower than a year ago primarily due to the absence of prior year favorable tax effects and absence of prior year favorable foreign currency effects. Net oil-equivalent production during the quarter was up 20,000 b/d from a year earlier primarily due to entitlement effects.

US downstream earnings were lower compared to last year primarily due to lower margins on refined product sales, partly offset by higher earnings from the 50% owned affiliate, CPChem. Refinery crude unit inputs, including crude oil and other inputs, increased 2% from the year-ago period primarily due to the absence of planned turnaround at the Richmond, California refinery, partly offset by hurricane impacts at the Pasadena, Texas refinery. Refined product sales increased 1% compared to the year-ago period primarily due to higher demand for gasoline.

International downstream earnings were higher compared to a year ago primarily due to higher margins on refined product sales, partly offset by higher operating expenses and unfavorable foreign currency effects. Refinery crude unit inputs, including crude oil and other inputs, decreased 1% from the year-ago period primarily due to higher planned turnarounds. Refined product sales increased 5% from the year-ago period primarily due to higher demand for gasoline and jet fuel.