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Chevron Q2 earnings get a boost from Anadarko deal termination

In the midst of volatile oil prices and geo-political conditions, Chevron (NYSE: CVX) reported 8% decline in total revenues and other income in the second quarter of 2019 to $38.85 billion, which was lower than the street estimate of $40.55 billion.

The San Ramon, California-based oil giant said its earnings for the second quarter stood at $2.27 per share, compared to $1.78 per share in the same quarter last year. Earnings were boosted by $740 million associated with the Anadarko merger termination fee. Analysts were expecting flat year-over-year EPS growth.

CVX stock gained 1% post the Q2 results. Chevron’s shares have dropped over 2% in the trailing 52 weeks but have gained 14% thus far this year. 

CEO Michael Wirth said, “Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”

Worldwide net oil-equivalent production was 3.08 million barrels per day in second-quarter 2019, an increase of 9% from a year ago.

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In May, Chevron completed the acquisition of Pasadena Refining System Inc. for $350 million. The same month, the company also decided to not pursue the acquisition of Anadarko Petroleum Corp. (NYSE: APC). Anadarko has agreed to be acquired by Occidental Petroleum (NYSE: OXY).

Earlier today, rival ExxonMobil (NYSE: XOM) reported a 21% dip in earnings for the second quarter due to poor performance from the downstream and chemical division. However, the results exceeded analysts’ expectations.

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