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Chevron Rides High Oil Prices to Record $35.5 Billion Annual Profit
Posted on 1/27/23 at 7:55 am
Posted on 1/27/23 at 7:55 am
quote:
Chevron Corp. banked historic profit last year as the pandemic receded and the war in Ukraine pushed oil prices to multiyear highs, with its shares climbing 53% while other sectors tumbled.
The U.S. oil company in its quarterly earnings reported Friday that it collected $35.5 billion in its highest-ever annual profit in 2022, more than double the prior year and about one-third higher than its previous record in 2011. Almost $50 billion in cash streamed in from its oil-leveraged operations, another record underpinning plans to pay investors through a new $75 billion share-repurchase program over the next several years.
quote:
Chevron, the second-largest U.S. oil company after Exxon Mobil Corp., posted revenue of $246.3 billion, up from $162.5 billion the previous year. The San Ramon, Calif., company reported a fourth-quarter profit of $6.4 billion, up from $5.1 billion in the same period the prior year.
The fourth-quarter results came short of analyst expectations, and in premarket trading on Friday Chevron shares fell about 1%.
For all of its recent winnings, though, Chevron and its rival oil-and-gas producers could face a rockier year in 2023, according to investors and analysts, if an anticipated slowdown in U.S. economic growth dents demand for oil, and if China’s reopening from strict Covid-19 restrictions unfolds slowly.
U.S. oil prices have held steady this year, but are off about 34% from last year’s peak. The industry is proceeding with caution, holding capital expenditures for 2023 below prepandemic levels and saying production will grow only modestly. Chevron has said it plans to spend about $17 billion in capital expenditures this year, up more than 25% from the prior year, but $3 billion less than it planned to spend in 2020 before Covid-19 took root.
Oil companies are still outperforming other sectors such as tech and finance, which have seen widespread job cuts in recent weeks. The energy segment of the S&P 500 index has climbed about 44% over the past year, compared with a 6.2% drop for the broader index.
“We are well-positioned to lead in both traditional and new-energy businesses, while delivering higher returns, lower carbon and superior shareholder value,” Chevron Chief Executive Mike Wirth said, while also noting the company whittled down its debt by about 26% over the year.
quote:
“There aren’t many sectors generating the type of free cash flow that energy is right now,” said Jeff Wyll, an analyst at investment firm Neuberger Berman, which has invested in Chevron. “The sector really can’t be ignored. Given the supply-demand balance, you have to have some things go wrong here to see a pullback in oil prices.”
Even so, institutional investors have shown limited interest so far in returning to the energy sector, after years of poor returns and heightened concerns about their environmental impact prompted large financiers to sell off their stakes in oil-and-gas companies or stop investing in drillers outright.
quote:
Investors’ concerns around environmental, social and governance-related issues are a constraint on the share prices of energy companies, “yet the earnings power of these businesses is superior to the earnings power of companies in other sectors,” he said.
Chevron and others have faced criticism from the Biden administration and others for giving priority to shareholder returns over pumping oil and gas at a time when global supplies are tight and Americans are feeling pain at the pump. On Thursday, the White House assailed Chevron’s $75 billion buyout program, saying the payout was proof the company could boost production but was choosing to reward investors instead.
quote:
Mr. Breber said Chevron’s output in the Permian this year is expected to grow at a slower pace, around 10%, because it has exhausted much of its inventory of wells that it had drilled but hadn’t brought into production.
LINK
I'm a fan of Chevron's CEO, Mike Wirth. I'd vote for him for President.
Posted on 1/27/23 at 8:03 am to ragincajun03
Such greed. These companies have no shame.
Posted on 1/27/23 at 8:05 am to ragincajun03
quote:
Chevron (NYSE:CVX) +3.6% in early trading Thursday after unveiling plans to repurchase $75B of its shares and raising its quarterly dividend by 6%, moves that may bode well for the company's upcoming Q4 results and long-term guidance.
At Wednesday's closing price of $179.08, Chevron (CVX) shares would have a 3.4% dividend yield, topping Exxon Mobil's (XOM) 3.2% yield.
interesting way to invest 75 billion. not sure that's the move.
Posted on 1/27/23 at 8:11 am to Klark Kent
Good for Chevron and their shareholders. A companies sole purpose is to make money and frick the government for getting involved in a “free market.”
The Biden admin has been distorting price with the SPR releases and I hope it bites them in the arse.
The Biden admin has been distorting price with the SPR releases and I hope it bites them in the arse.
Posted on 1/27/23 at 8:11 am to ragincajun03
So how much did the government make off of fuel taxes?
Posted on 1/27/23 at 8:14 am to Proximo
quote:
Now do Pfizer
Why?
I follow the oil & gas sector. Others can follow the pharmaceutical sector.
Posted on 1/27/23 at 8:17 am to ragincajun03
quote:Jesus Christ. Surely you’re joking.
I'm a fan of Chevron's CEO, Mike Wirth. I'd vote for him for President.
In reality, he has more political pull than the actual president and congress. So, no need for him to run.
Posted on 1/27/23 at 8:18 am to ragincajun03
As an owner of about 1000 shares I support this
Posted on 1/27/23 at 8:18 am to Klark Kent
quote:
interesting way to invest 75 billion. not sure that's the move
That’s just a not so subtle way of telling the Biden administration to go frick themselves.
Posted on 1/27/23 at 8:20 am to ragincajun03
Congrats O&G baws. Be kind to those who aren't accumulating massive wealth because of high gas prices.
Posted on 1/27/23 at 8:22 am to au4you
quote:
Jesus Christ. Surely you’re joking.
In reality, he has more political pull than the actual president and congress. So, no need for him to run.
Actually, I'm not. IF he were to run, I actually would vote for him.
That said, your second statement is correct. No need for him to join the free-loaders in D.C. He's great as a leader for the oil & gas and petrochemical industry.
Posted on 1/27/23 at 8:22 am to kywildcatfanone
quote:
Congrats O&G baws. Be kind to those who aren't accumulating massive wealth because of high gas prices.
Posted on 1/27/23 at 8:25 am to ragincajun03
quote:You’re good with big corp running the government?
That said, your second statement is correct. No need for him to join the free-loaders in D.C. He's great as a leader for the oil & gas and petrochemical industry.
Posted on 1/27/23 at 8:27 am to au4you
quote:
You’re good with big corp running the government?
They already are.
Posted on 1/27/23 at 8:28 am to TDTOM
quote:Yes which is a major problem.
They already are.
Posted on 1/27/23 at 8:30 am to au4you
quote:
quote:
They already are.
Yes which is a major problem.
So what's the magic unicorn solution to that?
Posted on 1/27/23 at 8:31 am to ragincajun03
May of 2020 I loaded up on some CVX shares. I support this move.
Posted on 1/27/23 at 8:31 am to ragincajun03
Lmao at Biden. Wants to shut down O&G but it's better than ever under his watch. Keep up the good work uncle joe
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