released a second-quarter performance update on Sunday that was better than expected ahead of the oil major’s earnings announcement this week.
Adjusted earnings of $3.08 per share beat consensus of $2.97 per share, as tracked by
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That’s down about 47% from the second quarter of last year and down from earnings of $3.55 per share in the first quarter of 2023.
The main reason Chevron’s profits fell was because oil prices fell dramatically from the same time last year, when they soared due to Russia’s invasion of Ukraine.
“We deliver strong shareholder value regardless of the commodity price environment,” CEO Mike Wirth said in an interview with Barrons. “We are at prices lower than they were a year ago, but higher than they were two and three years ago. We have to be prepared for high prices and low prices.
“We have a business that was built to last through the cycles,” he added. “AT [oil prices] less than $50, we cover all of our dividends and capital expenditures.
Chevron’s independent directors gave Wirth a vote of confidence, waiving the mandatory retirement age of 65 for him. He will turn 63 later this year.
The company also announced that its chief financial officer, Pierre Breber, is retiring after 35 years with the company. Eimear Bonner, Chief Technology Officer, will succeed him from March 2024.
In a statement, Wirth thanked Breber for her contributions and welcomed Bonner, a 24-year veteran of Chevron (ticker: CVX), saying she can “build on Chevron’s strong foundation and drive more shareholder value.”
Chevron said it had record quarterly production in the Permian Basin, a shale-producing region in west Texas and southeastern New Mexico. Production there was 11% higher than in the second quarter of last year. It produced 772,000 barrels of oil equivalent per day and added that it was on track for its full-year guidance.
Quarterly distributions to shareholders of $7.2 billion also set a record, Chevron said, including $4.4 billion in stock buybacks and $2.8 billion in dividends.
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