Chevron beat analyst estimates for second-quarter profit on Friday as record oil and gas production and lower capital expenditure helped the U.S. oil producer boost…
Chevron beat analyst estimates for second-quarter profit on Friday as record oil and gas production and lower capital expenditure helped the U.S. oil producer boost earnings despite weaker crude prices.
The No. 2 U.S. oil major triumphed last month in a legal challenge from Exxon Mobil XOM.N in order to close its $55 billion acquisition of Hess, with the crown jewel of the deal being Hess' stake in a lucrative Guyana oilfield that is operated by Exxon.
The landmark win helps Chevron secure a source of long-term growth and is expected to help fund dividends into the 2030s. The low cost of production in the Stabroek Block, offshore Guyana, will also help the company better weather lower crude prices, which declined 11% during the quarter as the OPEC+ group of producers ramped up production volumes.
"We had strong execution, record production and exceptional cash generation," said Chevron Chief Financial Officer Eimear Bonner in an interview.
"The financial performance was really underpinned by the stellar operational performance from across the company."
Adjusted earnings for the quarter ended June 30 were $3.1 billion, or $1.77 per share, beating consensus analyst estimates of $1.70 per share, according to data compiled by LSEG.
Global production
Content Original Link:
" target="_blank">
