Earnings preview: What to expect when Chevron reports Q2 results

Chevron Corporation (NYSE: CVX) is scheduled to report second quarter 2019 earnings results on Friday, August 2, before the opening bell. Analysts expect the company to report earnings of $1.81 per share on revenue of $40.5 billion.

There are concerns surrounding Chevron’s quarterly results as the energy industry continues to face challenges from the volatility in oil prices as well as uncertainties in economic and trade conditions worldwide.

Chevron’s results are likely to benefit from higher production volumes. The upstream segment is likely to see higher production, helped by shale properties and capital projects in the Permian Basin and Gulf of Mexico. While the downstream segment has experienced some weakness, it remains to be seen how the second quarter panned out for this business.

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).

In the first quarter of 2019, Chevron beat earnings estimates but revenues missed. Revenues fell nearly 7% to $35.2 billion while EPS dropped to $1.39 from $1.90 last year.

Chevron’s shares have dropped over 2% in the trailing 52 weeks but have gained 14% thus far this year. The majority of analysts have rated the stock Buy and the average 12-month price target is $141.88.

Chevron’s rival ExxonMobil (NYSE: XOM) is also set to report its second quarter 2019 earnings results on Friday.

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