U.S. energy giant
) just about managed to beat third quarter earnings estimates on
higher crude prices and a rise in output. Earnings per share
(excluding adjustments for foreign-currency effects) came in at
$2.71, a penny above the Zacks Consensus Estimate of $2.70.
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However, Chevron's performance deteriorated from the year-ago
adjusted profit of $2.83 per share amid weak refining margins.
The integrated supermajor's quarterly revenue moved up slightly
(by 0.8%) year over year to $58,503.0 million. However, it was
not enough to beat the Zacks Consensus Estimate of $59,346.0
Exxon Mobil Corp.
) - the world's largest publicly traded oil company - reported
higher-than-expected earnings yesterday, while European biggies
Royal Dutch Shell plc
) came out with contrasting results. Shell missed estimates but
BP beat earnings forecasts, apart from announcing a share
repurchase program and a payout hike.
Chevron's total production of crude oil and natural gas increased
by 2.7% from the year-earlier level to 2,585 thousand
oil-equivalent barrels per day (MBOE/d). Volume gains in U.S.,
project ramp-ups in Nigeria and Angola, together with a fall in
maintenance-associated downtime at Kazakhstan's Tengizchevroil
joint venture were somewhat offset by normal field declines.
The U.S. output improved 2.8% year over year, while Chevron's
international operations (accounting for 75% of the total)
delivered a 2.7% jump in volumes.
Notwithstanding gains on the production front and higher crude
oil prices, upstream earnings declined marginally (by 0.9%) from
the year-ago period - to $5,092.0 million - on the back of
spiraling operating expenses.
Chevron's production outlook remains one of the most robust in
its peer group, with a number of major initiatives scheduled to
come online during the next few years. Major start-ups during the
last few months include the liquefied natural gas (LNG) project
in Angola, deepwater Usan project in Nigeria and the Caesar/Tonga
project in the deepwater Gulf of Mexico.
Amongst the major upcoming projects, Chevron's Gorgon and
Wheatstone natural gas initiatives in Australia are progressing
well, while the Jack/St. Malo and Big Foot initiatives in the
deepwater Gulf of Mexico remain on track for late 2014 start-up.
Chevron's downstream segment achieved earnings of $380.0 million,
44.8% lower than the profit of $689.0 million last year. The
results were negatively influenced by lower refined product sales
margins and higher repair/maintenance expenses in its domestic
business. These factors were partially offset by better
performance from the 50%-owned Chevron Phillips Chemical Company
Capital Expenditure, Balance Sheet & Share
The second-largest U.S. oil company by market value after Exxon
Mobil spent $10,585.0 million in capital expenditures during the
quarter. Approximately 91% of the total outlays pertained to
As of Sep 30, 2013, the San Ramon, Calif.-based company had
$17,014.0 million in cash and total debt of $18,581.0 million,
with a debt-to-total capitalization ratio of about 11.4%. As part
of the stock repurchase program announced in 2010, Chevron
repurchased $1,250.0 million worth of shares in the third
Chevron currently carries a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.