Chevron’s earnings in the third quarter included a write-off, an asset impairment, a non-recurring contractual settlement in the upstream segment, and a gain on the sale of its southern Africa assets. The results benefited from higher production and crude oil prices during the period. The negative impact from foreign currency was lower in this year’s third quarter versus last year.
The company delivered cash flow from operations of $9.6 billion, the highest level in around five years, which helped in funding dividend payments and stock repurchases, and also in strengthening the balance sheet.
Chevron achieved a record in net oil-equivalent production, which totaled 2.96 million barrels per day. This was helped by the ramp-up of Wheatstone in Australia and the Permian Basin in Texas and New Mexico, which drove a production increase of 9% over last year.
Chevron earnings rise on production spike, but miss street view
Upstream operations within and outside the US saw earnings growth, driven by increases in crude oil realizations and production, as well as higher natural gas realizations and sales volumes. Earnings in the US downstream operations improved from last year due to higher equity earnings from the Chevron Phillips Chemical Company LLC and lower tax expense.
International downstream earnings declined from the previous year due to lower gains on asset sales and lower margins on refined product sales.