Chevron Announces Q4 2024 Financial Results

Chevron Announces Q4 2024 Financial Results

Chevron Corporation (NYSE: CVX) has announced its financial results for the fourth quarter of 2024, reporting earnings of $3.2 billion, or $1.84 per diluted share. This represents a significant increase from the $2.3 billion, or $1.22 per diluted share, reported in the fourth quarter of 2023. However, the company’s financial performance in the latest quarter was impacted by notable charges, including $715 million in severance costs and $400 million in impairment charges. Foreign currency fluctuations provided a positive contribution, increasing earnings by $722 million.

On an adjusted basis, Chevron reported earnings of $3.6 billion, or $2.06 per diluted share, for the fourth quarter of 2024. This compares to adjusted earnings of $6.5 billion, or $3.45 per diluted share, in the same quarter of 2023. The reconciliation of adjusted earnings can be found in Attachment 4 of the company’s earnings release.

CEO Statement and Business Performance

“In 2024, we delivered record production, returned record cash to shareholders, and initiated key growth projects,” said Mike Wirth, Chevron’s Chairman and Chief Executive Officer.

Chevron’s global net oil-equivalent production increased by 7% year-over-year, with U.S. production rising by 19% compared to the previous year. Several significant projects commenced operations in the Gulf of America, including the high-pressure Anchor project, an industry-first initiative. Additionally, in Kazakhstan, Tengizchevroil completed the Wellhead Pressure Management Project and recently launched the Future Growth Project, further strengthening the company’s long-term production capacity.

Chevron also demonstrated a strong commitment to shareholder returns, repurchasing over $15 billion worth of shares in 2024. The company has a solid history of share repurchases, having executed buybacks in 17 of the past 21 years.

“We strengthened our portfolio, committed to cost reductions, and maintained capital discipline, positioning ourselves for significant free cash flow growth in the future,” Wirth added.

Strategic Asset Sales and Financial Initiatives

Chevron completed several strategic asset sales during the year, including transactions in Canada, the Republic of Congo, and Alaska. The company is also making significant progress on its acquisition of Hess Corporation, which is expected to further enhance its asset portfolio. Additionally, Chevron announced a target of achieving $2 billion to $3 billion in structural cost reductions by the end of 2026.

Financial and Business Highlights

Chevron’s key financial and operational metrics for the fourth quarter of 2024 are as follows:

  • Total Earnings: $3.2 billion, compared to $4.5 billion in Q3 2024 and $2.3 billion in Q4 2023.
  • Upstream Earnings: $4.3 billion, compared to $4.6 billion in Q3 2024 and $1.6 billion in Q4 2023.
  • Downstream Earnings: A loss of $248 million, compared to earnings of $595 million in Q3 2024 and $1.1 billion in Q4 2023.
  • Earnings per Share (Diluted): $1.84, down from $2.48 in Q3 2024 but higher than $1.22 in Q4 2023.
  • Adjusted Earnings: $3.6 billion, compared to $4.5 billion in Q3 2024 and $6.5 billion in Q4 2023.
  • Adjusted Earnings per Share (Diluted): $2.06, compared to $2.51 in Q3 2024 and $3.45 in Q4 2023.
  • Cash Flow from Operations (CFFO): $8.7 billion, compared to $9.7 billion in Q3 2024 and $12.4 billion in Q4 2023.
  • Capital Expenditures (Capex): $4.3 billion, slightly up from $4.1 billion in Q3 2024 but lower than $4.4 billion in Q4 2023.

Full-Year 2024 Financial Highlights

Chevron’s full-year financial performance reflects both the challenges and successes of the year:

  • Total Earnings for 2024: $17.7 billion, compared to $21.4 billion in 2023.
  • Upstream Earnings: $18.6 billion, compared to $17.4 billion in 2023.
  • Downstream Earnings: $1.7 billion, down from $6.1 billion in 2023.
  • Cash Flow from Operations: $31.5 billion, compared to $35.6 billion in 2023.
  • Return on Capital Employed (ROCE): 10.1%, down from 11.9% in 2023.
  • Net Oil-Equivalent Production: 3.35 million barrels of oil-equivalent per day (MBOED), an increase from 3.12 MBOED in 2023.
  • Capital Expenditures: $16.4 billion, slightly up from $15.8 billion in 2023.
  • Shareholder Returns: A record $27 billion in cash returned to shareholders, including $15.2 billion in share repurchases and $11.8 billion in dividends.

Chevron also announced a 5% increase in its quarterly dividend to $1.71 per share, payable on March 10, 2025, to shareholders of record as of February 14, 2025.

Key Business Milestones and Growth Initiatives

Chevron achieved several significant milestones in 2024:

  • Major Project Startups: The industry-first 20,000 psi deepwater Anchor project commenced production. Additionally, the Whale semi-submersible platform in the Gulf of America came online, and water injection began at the Jack/St. Malo and Tahiti fields to enhance production.
  • Future Growth Project: Launched in January 2025, this project is expected to ramp up production to approximately one million barrels of oil-equivalent per day.
  • Energy Innovation: Announced plans to develop scalable power solutions using natural gas-fired turbines, with integration of carbon capture and storage to support the growing energy demand from U.S. data centers.
  • Sustainable Energy Projects: Achieved first gas on the Sanha Lean Gas Connection project, securing additional natural gas supply for Angola’s Liquefied Natural Gas facility.
  • Exploration Expansion: Increased its acreage positions in Angola, Brazil, Equatorial Guinea, Uruguay, and Namibia, pending government approvals.
  • Carbon Reduction: Implemented projects to reduce 700,000 metric tonnes of carbon dioxide-equivalent emissions from operations.
  • Strategic Investments: Launched the $500 million Future Energy Fund III, focusing on venture investments in technology-based solutions for lower-carbon energy.

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