Chevron Reports Fourth Quarter 2023 Results
- Record $26.3 billion cash returned to shareholders in 2023
- Record annual worldwide and U.S. production
- Announced an 8 percent increase in quarterly dividend to $1.63/share
- Cash returned to shareholders totaled over $26 billion for the year, 18 percent higher than last year’s record total
- Annual worldwide net oil-equivalent production increased to over 3.1 million barrels of oil-equivalent per day, led by 14 percent growth in the United States
- Added approximately 980 million barrels of net oil-equivalent proved reserves in 2023, subject to final reviews, that equate to 86 percent of net oil equivalent production for the year
- Reported earnings of $2.3 billion for Q4 2023, compared to $6.4 billion in Q4 2022
- Adjusted earnings of $6.5 billion in Q4 2023 compared to adjusted earnings of $7.9 billion in Q4 2022
- Included in the current quarter were $1.8 billion of U.S. upstream impairment charges and $1.9 billion of decommissioning obligations from previously sold assets in the U.S. Gulf of Mexico
- Foreign currency effects decreased earnings by $479 million
- Reported earnings declined compared to last year primarily due to lower upstream realizations, losses from decommissioning obligations for previously sold assets in the U.S. Gulf of Mexico, higher U.S. upstream impairment charges mainly in California, and lower margins on refined product sales
- Worldwide production was up 4 percent from a year ago primarily due to the acquisition of PDC Energy, Inc. (PDC) and growth in the Permian Basin, which was up 10 percent over 2022
- Capex in 2023 was up 32 percent from last year primarily due to higher investments in the United States
Insights
The reported earnings and adjusted earnings of Chevron Corporation reflect a notable decline when compared with the previous year's figures. The reduction in earnings is attributed to several factors, including lower upstream realizations and the financial impact of decommissioning obligations and impairment charges. The decrease in earnings per share (EPS) from $3.33 to $1.22 (diluted) is a key indicator that may influence investor sentiment and the company's stock valuation.
From a capital allocation perspective, the substantial cash return to shareholders, which includes dividends and share repurchases, signals a strong commitment to shareholder returns. However, this has to be balanced against the backdrop of increased capital expenditures (Capex), which rose by 32% from the previous year. The increased Capex suggests a strategic focus on growth and expansion, particularly in the U.S. market.
The Return on Capital Employed (ROCE) has decreased significantly from 20.3% to 11.9%, indicating a lower return generated on investments made by the company. This could be a point of concern for investors looking for efficient capital deployment.
Chevron's record annual production, both worldwide and in the U.S., highlights the company's operational efficiency and its successful expansion, particularly through acquisitions such as PDC Energy, Inc. The growth in the Permian Basin is an important strategic move, as this region is a key driver of U.S. oil production.
The company's net oil-equivalent production increase is a positive sign for future revenue streams, especially when considering the 86% replacement of net oil-equivalent production with new proved reserves. This reserve replacement ratio (RRR) is a critical measure of a company's ability to sustain production levels and future growth.
However, the net additions and reductions in proved reserves also reflect the volatility in reserve estimates, which can be influenced by changes in oil prices and operational factors. The revisions in the Permian Basin, east Texas and California may require further analysis to understand the long-term sustainability of Chevron's reserve base.
While Chevron's financial performance shows a downturn in the short term, the company's strategic acquisitions and increased production capacity could position it for recovery as market conditions improve. The energy sector's transition towards cleaner sources and the company's investment in traditional and new energy acquisitions indicate an attempt to diversify and adapt to changing energy demands.
Investors and stakeholders should consider the long-term implications of Chevron's strategy, including the potential for increased demand for cleaner energy sources and the company's role in this transition. The company's debt ratio remains relatively stable, which is a positive sign of financial health and may provide some assurance to investors concerned about the financial risks associated with the company's increased capital expenditures and acquisitions.
-
Reported earnings of
; adjusted earnings of$2.3 billion $6.5 billion -
Record
cash returned to shareholders in 2023$26.3 billion -
Record annual worldwide and
U.S. production -
Announced an 8 percent increase in quarterly dividend to
/share$1.63
Earnings & Cash Flow Summary
|
Unit |
|
4Q 2023 |
3Q 2023 |
|
4Q 2022 |
|
2023 |
2022 |
|||||||||||||
Total Earnings / (Loss) |
$ MM |
$ |
2,259 |
|
$ |
6,526 |
|
$ |
6,353 |
|
$ |
21,369 |
|
$ |
35,465 |
|
||||||
Upstream |
$ MM |
$ |
1,586 |
|
$ |
5,755 |
|
$ |
5,485 |
|
$ |
17,438 |
|
$ |
30,284 |
|
||||||
Downstream |
$ MM |
$ |
1,147 |
|
$ |
1,683 |
|
$ |
1,771 |
|
$ |
6,137 |
|
$ |
8,155 |
|
||||||
All Other |
$ MM |
$ |
(474 |
) |
$ |
(912 |
) |
$ |
(903 |
) |
$ |
(2,206 |
) |
$ |
(2,974 |
) |
||||||
Earnings Per Share - Diluted |
$/Share |
$ |
1.22 |
|
$ |
3.48 |
|
$ |
3.33 |
|
$ |
11.36 |
|
$ |
18.28 |
|
||||||
Adjusted Earnings (1) |
$ MM |
$ |
6,453 |
|
$ |
5,721 |
|
$ |
7,850 |
|
$ |
24,693 |
|
$ |
36,542 |
|
||||||
Adjusted Earnings Per Share - Diluted (1) |
$/Share |
$ |
3.45 |
|
$ |
3.05 |
|
$ |
4.09 |
|
$ |
13.13 |
|
$ |
18.83 |
|
||||||
Cash Flow From Operations (CFFO) |
$ B |
$ |
12.4 |
|
$ |
9.7 |
|
$ |
12.5 |
|
$ |
35.6 |
|
$ |
49.6 |
|
||||||
CFFO Excluding Working Capital (1) |
$ B |
$ |
11.4 |
|
$ |
8.9 |
|
$ |
11.5 |
|
$ |
38.8 |
|
$ |
47.5 |
|
||||||
(1) See non-GAAP reconciliation in attachments |
“In 2023, we returned more cash to shareholders and produced more oil and natural gas than any year in the company’s history,” said Mike Wirth, Chevron’s chairman and chief executive officer. Cash returned to shareholders totaled over
“We also strengthened our portfolio with traditional and new energy acquisitions to help meet the growing demand for affordable, reliable, and ever-cleaner energy,” Wirth concluded. In 2023, the company completed several acquisitions, including PDC Energy, Inc. and a majority stake in ACES Delta, LLC, and signed an agreement to acquire Hess Corporation.
Financial and Business Highlights
|
Unit |
|
4Q 2023 |
|
3Q 2023 |
|
|
|
4Q 2022 |
|
|
2023 |
|
2022 |
|
||||||||
Return on Capital Employed (ROCE) |
% |
|
5.1 |
% |
|
14.5 |
% |
|
14.2 |
% |
|
11.9 |
% |
|
20.3 |
% |
|||||||
Capital Expenditures (Capex) |
$ B |
$ |
4.4 |
|
$ |
4.7 |
|
$ |
3.8 |
|
$ |
15.8 |
|
$ |
12.0 |
|
|||||||
Affiliate Capex |
$ B |
$ |
0.9 |
|
$ |
0.8 |
|
$ |
1.0 |
|
$ |
3.5 |
|
$ |
3.4 |
|
|||||||
Free Cash Flow (1) |
$ B |
$ |
8.1 |
|
$ |
5.0 |
|
$ |
8.7 |
|
$ |
19.8 |
|
$ |
37.6 |
|
|||||||
Free Cash Flow ex. working capital (1) |
$ B |
$ |
7.1 |
|
$ |
4.2 |
|
$ |
7.7 |
|
$ |
23.0 |
|
$ |
35.5 |
|
|||||||
Debt |
% |
|
11.5 |
% |
|
11.1 |
% |
|
12.8 |
% |
|
11.5 |
% |
|
12.8 |
% |
|||||||
Net Debt Ratio (1) (end of period) |
% |
|
7.3 |
% |
|
8.1 |
% |
|
3.3 |
% |
|
7.3 |
% |
|
3.3 |
% |
|||||||
Net Oil-Equivalent Production |
MBOED |
|
3,392 |
|
|
3,146 |
|
|
3,011 |
|
|
3,120 |
|
|
2,999 |
|
|||||||
(1) See non-GAAP reconciliation in attachments |
2023 Financial Highlights
-
Reported earnings declined compared to last year primarily due to lower upstream realizations, losses from decommissioning obligations for previously sold assets in the
U.S. Gulf ofMexico , higherU.S. upstream impairment charges mainly inCalifornia and lower margins on refined product sales. -
Worldwide and
U.S. net oil-equivalent production set annual records. Worldwide production was up 4 percent from a year ago primarily due to the acquisition of PDC Energy, Inc. (PDC) and growth in the Permian Basin, which was up 10 percent over 2022. -
Added approximately 980 million barrels of net oil-equivalent proved reserves in 2023, which are subject to final reviews, that equate to 86 percent of net oil equivalent production for the year. The largest net additions were from acquisitions in
the United States , and extensions and discoveries in the Permian Basin. The largest net reductions were from revisions in the Permian Basin, eastTexas andCalifornia . -
Capex in 2023 was up 32 percent from last year primarily due to higher investments in
the United States , including about invested in PDC assets post-acquisition and approximately$450 million of inorganic spend, mainly due to the acquisition of a majority stake in ACES Delta, LLC. Capex excludes the acquisition cost of PDC.$650 million -
Cash flow from operations was lower than a year ago mainly due to lower commodity prices and lower margins on refined product sales. Over the past three years, the company has generated over
in cash flow from operations and nearly$110 billion of free cash flow.$80 billion -
Eliminated over
of debt, including all debt assumed in the PDC acquisition, resulting in a net debt ratio of 7.3 percent.$4 billion -
The company returned a record
of cash to shareholders during 2023, including dividends of$26.3 billion (3 percent higher than 2022) and share repurchases of$11.3 billion (32 percent higher than last year).$14.9 billion -
The company’s Board of Directors declared an 8 percent increase in the quarterly dividend to
one dollar andsixty-three cents ( ) per share, payable March 11, 2024, to all holders of common stock as shown on the transfer records of the corporation at the close of business on February 16, 2024.$1.63
2023 Business Highlights
-
Completed the acquisition of PDC, enhancing the company’s strong presence in the DJ and Permian Basins in
the United States . -
Completed the acquisition of a majority stake in ACES Delta, LLC, which is developing a green hydrogen production and storage hub in
Utah . -
Achieved first oil at the Mad Dog 2 project in the Gulf of
Mexico . -
Achieved first natural gas production from the Gorgon Stage 2 development in
Australia . - Achieved mechanical completion on the Future Growth Project at the company’s 50 percent-owned affiliate, Tengizchevroil.
-
Converted the diesel hydrotreater at the
El Segundo, California refinery to process either 100 percent renewable or traditional feedstocks. -
Reached final investment decision to construct a third gathering pipeline that is expected to increase natural gas production capacity at the Leviathan reservoir, offshore
Israel . -
Expanded the Bayou Bend carbon capture and sequestration hub on the
U.S. Gulf Coast through an acquisition of nearly 100,000 acres. -
Received approvals to extend Block 0 concession in
Angola through 2050. -
Received approval to extend licenses with PetroBoscan, S.A. and PetroIndependiente, S.A. in
Venezuela through 2041. -
Acquired 73 exploration blocks in the Gulf of
Mexico (GOM) lease sale 259 and submitted winning bids on 28 blocks in GOM lease sale 261, subject to final government approval. -
Announced a definitive agreement to acquire Hess Corporation, which is expected to strengthen Chevron’s long-term performance by adding world-class assets and people.
Segment Highlights
Upstream |
||||||||||||||||||||||
|
Unit |
|
|
4Q 2023 |
|
|
|
3Q 2023 |
|
|
4Q 2022 |
|
|
2023 |
|
|
2022 |
|||||
Earnings / (Loss) |
$ MM |
$ |
(1,347 |
) |
$ |
2,074 |
$ |
2,618 |
$ |
4,148 |
$ |
12,621 |
||||||||||
Net Oil-Equivalent Production |
MBOED |
|
1,598 |
|
|
1,407 |
|
1,192 |
|
1,349 |
|
1,181 |
||||||||||
Liquids Production |
MBD |
|
1,164 |
|
|
1,028 |
|
895 |
|
997 |
|
888 |
||||||||||
Natural Gas Production |
MMCFD |
|
2,604 |
|
|
2,275 |
|
1,789 |
|
2,112 |
|
1,758 |
||||||||||
Liquids Realization |
$/BBL |
$ |
58.69 |
|
$ |
62.42 |
$ |
66.00 |
$ |
59.19 |
$ |
76.71 |
||||||||||
Natural Gas Realization |
$/MCF |
$ |
1.62 |
|
$ |
1.39 |
$ |
4.94 |
$ |
1.67 |
$ |
5.55 |
-
U.S. upstream reported a loss in the fourth quarter 2023. The results were lower than the year-ago period primarily due to charges associated with decommissioning obligations for previously sold assets in theU.S. Gulf ofMexico , higher impairment charges mainly from assets inCalifornia , and lower realizations. These items were partially offset by higher sales volumes, including from production post-closing of the PDC acquisition. -
U.S. net oil-equivalent production was up 34 percent from fourth quarter 2022 and set a new quarterly record, primarily due to the acquisition of PDC, which added 266,000 oil-equivalent barrels per day during the quarter, and higher production in the Permian Basin.
International Upstream |
Unit |
|
|
4Q 2023 |
|
|
|
3Q 2023 |
|
|
4Q 2022 |
|
|
|
2023 |
|
|
2022 |
|||||
Earnings / (Loss) (1) |
$ MM |
$ |
2,933 |
|
$ |
3,681 |
$ |
2,867 |
|
$ |
13,290 |
$ |
17,663 |
||||||||||
Net Oil-Equivalent Production |
MBOED |
|
1,794 |
|
|
1,739 |
|
1,819 |
|
|
1,771 |
|
1,818 |
||||||||||
Liquids Production |
MBD |
|
851 |
|
|
803 |
|
852 |
|
|
833 |
|
831 |
||||||||||
Natural Gas Production |
MMCFD |
|
5,661 |
|
|
5,616 |
|
5,799 |
|
|
5,632 |
|
5,919 |
||||||||||
Liquids Realization |
$/BBL |
$ |
74.54 |
|
$ |
75.64 |
$ |
77.67 |
|
$ |
71.70 |
$ |
90.71 |
||||||||||
Natural Gas Realization |
$/MCF |
$ |
7.31 |
|
$ |
6.96 |
$ |
10.35 |
|
$ |
7.69 |
$ |
9.75 |
||||||||||
(1) Includes foreign currency effects |
$ MM |
$ |
(162 |
) |
$ |
584 |
$ |
(83 |
) |
$ |
376 |
$ |
816 |
- International upstream earnings in the fourth quarter 2023 were higher than a year ago primarily due to the absence of fourth quarter 2022 write-off and impairment charges, and lower operating expenses, partially offset by lower realizations.
- Net oil-equivalent production during the quarter was down 25,000 barrels per day from a year earlier primarily due to normal field declines.
Downstream | |||||||||||||||||||||||
|
Unit |
|
|
4Q 2023 |
|
|
3Q 2023 |
|
|
4Q 2022 |
|
|
2023 |
|
|
2022 |
|||||||
Earnings / (Loss) |
$ MM |
$ |
470 |
$ |
1,376 |
$ |
1,180 |
$ |
3,904 |
$ |
5,394 |
||||||||||||
Refinery Crude Oil Inputs |
MBD |
|
923 |
|
961 |
|
888 |
|
934 |
|
866 |
||||||||||||
Refined Product Sales |
MBD |
|
1,298 |
|
1,303 |
|
1,236 |
|
1,287 |
|
1,228 |
-
U.S. downstream earnings in fourth quarter 2023 were lower compared to last year primarily due to lower margins on refined product sales. - Refinery crude oil inputs during the quarter increased 4 percent from the year-ago period as the company processed more crude oil in place of other feedstocks.
- Refined product sales in fourth quarter 2023 were up 5 percent from the year-ago period, primarily due to higher demand for jet fuel.
International Downstream |
Unit |
|
|
4Q 2023 |
|
|
|
3Q 2023 |
|
|
4Q 2022 |
|
|
|
2023 |
|
|
|
2022 |
||||
Earnings / (Loss) (1) |
$ MM |
$ |
677 |
|
$ |
307 |
$ |
591 |
|
$ |
2,233 |
|
$ |
2,761 |
|||||||||
Refinery Crude Oil Inputs |
MBD |
|
629 |
|
|
625 |
|
653 |
|
|
626 |
|
|
639 |
|||||||||
Refined Product Sales |
MBD |
|
1,437 |
|
|
1,431 |
|
1,441 |
|
|
1,445 |
|
|
1,386 |
|||||||||
(1) Includes foreign currency effects |
$ MM |
$ |
(58 |
) |
$ |
24 |
$ |
(112 |
) |
$ |
(12 |
) |
$ |
235 |
- International downstream earnings during the quarter were higher compared to a year ago primarily due to lower unfavorable foreign currency effects.
- Refinery crude oil inputs in fourth quarter 2023 decreased 4 percent from the year-ago period as refinery runs decreased due to planned shutdowns.
- Refined product sales during the quarter were flat compared to fourth quarter last year.
All Other
All Other |
Unit |
|
|
4Q 2023 |
|
|
|
3Q 2023 |
|
|
|
4Q 2022 |
|
|
|
2023 |
|
|
|
2022 |
|
||
Net charges (1) |
$ MM |
$ |
(474 |
) |
$ |
(912 |
) |
$ |
(903 |
) |
$ |
(2,206 |
) |
$ |
(2,974 |
) |
|||||||
(1) Includes foreign currency effects |
$ MM |
$ |
(259 |
) |
$ |
(323 |
) |
$ |
(210 |
) |
$ |
(588 |
) |
$ |
(382 |
) |
- All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.
-
Net charges in fourth quarter 2023 decreased compared to a year ago primarily due to lower employee benefit costs and favorable tax items.
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.chevron.com.
NOTICE
Chevron’s discussion of fourth quarter 2023 earnings with security analysts will take place on Friday, February 2, 2024, at 8:00 a.m. PT. A webcast of the meeting will be available in a listen-only mode to individual investors, media, and other interested parties on Chevron’s website at www.chevron.com under the “Investors” section. Prepared remarks for today’s call, additional financial and operating information and other complementary materials will be available prior to the call at approximately 3:30 a.m. PT and located under “Events and Presentations” in the “Investors” section on the Chevron website.
As used in this news release, the term “Chevron” and such terms as “the company,” “the corporation,” “our,” “we,” “us” and “its” may refer to Chevron Corporation, one or more of its consolidated subsidiaries, or to all of them taken as a whole. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
Please visit Chevron’s website and Investor Relations page at www.chevron.com and www.chevron.com/investors, LinkedIn: www.linkedin.com/company/chevron, Twitter: @Chevron, Facebook: www.facebook.com/chevron, and Instagram: www.instagram.com/chevron, where Chevron often discloses important information about the company, its business, and its results of operations.
Non-GAAP Financial Measures - This news release includes adjusted earnings/(loss), which reflect earnings or losses excluding significant non-operational items including impairment charges, write-offs, decommissioning obligations from previously sold assets, severance costs, gains on asset sales, unusual tax items, effects of pension settlements and curtailments, foreign currency effects and other special items. We believe it is useful for investors to consider this measure in comparing the underlying performance of our business across periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss) as prepared in accordance with
This news release also includes cash flow from operations excluding working capital, free cash flow and free cash flow excluding working capital. Cash flow from operations excluding working capital is defined as net cash provided by operating activities less net changes in operating working capital, and represents cash generated by operating activities excluding the timing impacts of working capital. Free cash flow is defined as net cash provided by operating activities less capital expenditures and generally represents the cash available to creditors and investors after investing in the business. Free cash flow excluding working capital is defined as net cash provided by operating activities excluding working capital less capital expenditures and generally represents the cash available to creditors and investors after investing in the business excluding the timing impacts of working capital. The company believes these measures are useful to monitor the financial health of the company and its performance over time. Reconciliations of cash flow from operations excluding working capital, free cash flow and free cash flow excluding working capital are shown in Attachment 3.
This news release also includes net debt ratio. Net debt ratio is defined as total debt less cash and cash equivalents and marketable securities as a percentage of total debt less cash and cash equivalents and marketable securities, plus Chevron Corporation stockholders’ equity, which indicates the company’s leverage, net of its cash balances. The company believes this measure is useful to monitor the strength of the company’s balance sheet. A reconciliation of net debt ratio is shown in Attachment 2.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements relating to Chevron’s operations and energy transition plans that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “advances,” “commits,” “drives,” “aims,” “forecasts,” “projects,” “believes,” “approaches,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “progress,” “may,” “can,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” “potential,” “ambitions,” “aspires” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for the company’s products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; technological advancements; changes to government policies in the countries in which the company operates; public health crises, such as pandemics and epidemics, and any related government policies and actions; disruptions in the company’s global supply chain, including supply chain constraints and escalation of the cost of goods and services; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic, market and political conditions, including the military conflict between
Attachment 1 |
||||||||||||||||
CHEVRON CORPORATION - FINANCIAL REVIEW (Millions of Dollars, Except Per-Share Amounts) (unaudited) |
||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME |
|
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
REVENUES AND OTHER INCOME |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|||
Sales and other operating revenues |
$ |
48,933 |
|
$ |
54,523 |
$ |
196,913 |
|
$ |
235,717 |
||||||
Income (loss) from equity affiliates |
|
990 |
|
|
1,623 |
|
5,131 |
|
|
8,585 |
||||||
Other income (loss) |
|
(2,743 |
) |
|
327 |
|
(1,095 |
) |
|
1,950 |
||||||
Total Revenues and Other Income |
|
47,180 |
|
|
56,473 |
|
200,949 |
|
|
246,252 |
||||||
COSTS AND OTHER DEDUCTIONS |
|
|
|
|
||||||||||||
Purchased crude oil and products |
|
28,477 |
|
|
32,570 |
|
119,196 |
|
|
145,416 |
||||||
Operating expenses (1) |
|
7,523 |
|
|
7,891 |
|
29,240 |
|
|
29,321 |
||||||
Exploration expenses |
|
254 |
|
|
453 |
|
914 |
|
|
974 |
||||||
Depreciation, depletion and amortization |
|
6,254 |
|
|
4,764 |
|
17,326 |
|
|
16,319 |
||||||
Taxes other than on income |
|
1,062 |
|
|
864 |
|
4,220 |
|
|
4,032 |
||||||
Interest and debt expense |
|
120 |
|
|
123 |
|
469 |
|
|
516 |
||||||
Total Costs and Other Deductions |
|
43,690 |
|
|
46,665 |
|
171,365 |
|
|
196,578 |
||||||
Income (Loss) Before Income Tax Expense |
|
3,490 |
|
|
9,808 |
|
29,584 |
|
|
49,674 |
||||||
Income tax expense (benefit) |
|
1,247 |
|
|
3,430 |
|
8,173 |
|
|
14,066 |
||||||
Net Income (Loss) |
|
2,243 |
|
|
6,378 |
|
21,411 |
|
|
35,608 |
||||||
Less: Net income (loss) attributable to noncontrolling interests |
|
(16 |
) |
|
25 |
|
42 |
|
|
143 |
||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHEVRON CORPORATION |
$ |
2,259 |
|
$ |
6,353 |
$ |
21,369 |
|
$ |
35,465 |
||||||
|
|
|
|
|
||||||||||||
(1) Includes operating expense, selling, general and administrative expense, and other components of net periodic benefit costs. |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
PER SHARE OF COMMON STOCK |
|
|
|
|
||||||||||||
Net Income (Loss) Attributable to Chevron Corporation |
|
|
|
|||||||||||||
- Basic |
$ |
1.23 |
|
$ |
3.34 |
$ |
11.41 |
|
$ |
18.36 |
||||||
- Diluted |
$ |
1.22 |
|
$ |
3.33 |
$ |
11.36 |
|
$ |
18.28 |
||||||
Weighted Average Number of Shares Outstanding (000's) |
|
|
||||||||||||||
- Basic |
|
1,861,474 |
|
|
1,910,602 |
|
1,872,737 |
|
|
1,931,486 |
||||||
- Diluted |
|
1,868,101 |
|
|
1,919,731 |
|
1,880,307 |
|
|
1,940,277 |
||||||
|
|
|
|
|
||||||||||||
Note: Shares outstanding (excluding 14 million associated with Chevron’s Benefit Plan Trust) were 1,851 million and 1,901 million at December 31, 2023, and December 31, 2022, respectively. |
EARNINGS BY MAJOR OPERATING AREA |
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Upstream |
|
|
|
|
||||||||||||
|
$ |
(1,347 |
) |
$ |
2,618 |
|
$ |
4,148 |
|
$ |
12,621 |
|
||||
International |
|
2,933 |
|
|
2,867 |
|
|
13,290 |
|
|
17,663 |
|
||||
Total Upstream |
|
1,586 |
|
|
5,485 |
|
|
17,438 |
|
|
30,284 |
|
||||
Downstream |
|
|
|
|
||||||||||||
|
|
470 |
|
|
1,180 |
|
|
3,904 |
|
|
5,394 |
|
||||
International |
|
677 |
|
|
591 |
|
|
2,233 |
|
|
2,761 |
|
||||
Total Downstream |
|
1,147 |
|
|
1,771 |
|
|
6,137 |
|
|
8,155 |
|
||||
All Other |
|
(474 |
) |
|
(903 |
) |
|
(2,206 |
) |
|
(2,974 |
) |
||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHEVRON CORPORATION |
$ |
2,259 |
|
$ |
6,353 |
|
$ |
21,369 |
|
$ |
35,465 |
|
Attachment 2 |
||||||||
CHEVRON CORPORATION - FINANCIAL REVIEW (Millions of Dollars) (unaudited) |
||||||||
SELECTED BALANCE SHEET ACCOUNT DATA (Preliminary) |
December 31,
|
December 31,
|
||||||
Cash and cash equivalents |
$ |
8,178 |
|
$ |
17,678 |
|
||
Marketable securities |
$ |
45 |
|
$ |
223 |
|
||
Total assets |
$ |
261,632 |
|
$ |
257,709 |
|
||
Total debt |
$ |
20,836 |
|
$ |
23,339 |
|
||
Total Chevron Corporation stockholders' equity |
$ |
160,957 |
|
$ |
159,282 |
|
||
Noncontrolling interests |
$ |
972 |
|
$ |
960 |
|
||
|
|
|
||||||
SELECTED FINANCIAL RATIOS |
|
|
||||||
Total debt plus total stockholders’ equity |
$ |
181,793 |
|
$ |
182,621 |
|
||
Debt ratio (Total debt / Total debt plus stockholders’ equity) |
|
11.5 |
% |
|
12.8 |
% |
||
|
|
|
||||||
Adjusted debt (Total debt less cash and cash equivalents and marketable securities) |
$ |
12,613 |
|
$ |
5,438 |
|
||
Adjusted debt plus total stockholders’ equity |
$ |
173,570 |
|
$ |
164,720 |
|
||
Net debt ratio (Adjusted debt / Adjusted debt plus total stockholders’ equity) |
|
7.3 |
% |
|
3.3 |
% |
RETURN ON CAPITAL EMPLOYED (ROCE) |
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Total reported earnings |
$ |
2,259 |
|
$ |
6,353 |
|
$ |
21,369 |
|
$ |
35,465 |
|
||||
Non-controlling interest |
|
(16 |
) |
|
25 |
|
|
42 |
|
|
143 |
|
||||
Interest expense (A/T) |
|
111 |
|
|
113 |
|
|
432 |
|
|
476 |
|
||||
ROCE earnings |
|
2,354 |
|
|
6,491 |
|
|
21,843 |
|
|
36,084 |
|
||||
Annualized ROCE earnings |
|
9,416 |
|
|
25,964 |
|
|
21,843 |
|
|
36,084 |
|
||||
Average capital employed* |
|
184,786 |
|
|
183,425 |
|
|
183,173 |
|
|
177,445 |
|
||||
ROCE |
|
5.1 |
% |
|
14.2 |
% |
|
11.9 |
% |
|
20.3 |
% |
||||
*Capital employed is the sum of Chevron Corporation stockholders’ equity, total debt and noncontrolling interest. Average capital employed is computed by averaging the sum of capital employed at the beginning and the end of the period. |
|
Three Months Ended
|
|
|
Year Ended
|
||||||||||||
CAPEX BY SEGMENT |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
||
|
|
|
|
|
||||||||||||
Upstream |
$ |
2,608 |
$ |
2,183 |
$ |
9,842 |
$ |
6,847 |
||||||||
Downstream |
|
418 |
|
582 |
|
1,536 |
|
1,699 |
||||||||
Other |
|
133 |
|
128 |
|
351 |
|
310 |
||||||||
Total |
|
3,159 |
|
2,893 |
|
11,729 |
|
8,856 |
||||||||
|
|
|
|
|
||||||||||||
International |
|
|
|
|
||||||||||||
Upstream |
|
1,094 |
|
833 |
|
3,836 |
|
2,718 |
||||||||
Downstream |
|
93 |
|
93 |
|
237 |
|
375 |
||||||||
Other |
|
15 |
|
16 |
|
27 |
|
25 |
||||||||
Total International |
|
1,202 |
|
942 |
|
4,100 |
|
3,118 |
||||||||
CAPEX |
$ |
4,361 |
$ |
3,835 |
$ |
15,829 |
$ |
11,974 |
||||||||
|
|
|
|
|
||||||||||||
AFFILIATE CAPEX (not included above): |
|
|
|
|
||||||||||||
Upstream |
$ |
517 |
$ |
634 |
$ |
2,310 |
$ |
2,406 |
||||||||
Downstream |
|
333 |
|
352 |
|
1,224 |
|
960 |
||||||||
AFFILIATE CAPEX |
$ |
850 |
$ |
986 |
$ |
3,534 |
$ |
3,366 |
Attachment 3 |
||||||||||||||||
CHEVRON CORPORATION - FINANCIAL REVIEW (Billions of Dollars) (unaudited) |
||||||||||||||||
SUMMARIZED STATEMENT OF CASH FLOWS (Preliminary)(1) |
Three Months Ended
|
Year Ended
|
||||||||||||||
|
||||||||||||||||
OPERATING ACTIVITIES |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net Income (Loss) |
$ |
2.2 |
|
$ |
6.4 |
|
$ |
21.4 |
|
$ |
35.6 |
|
||||
Adjustments |
|
|
|
|
||||||||||||
Depreciation, depletion and amortization |
|
6.3 |
|
|
4.8 |
|
|
17.3 |
|
|
16.3 |
|
||||
Distributions more (less) than income from equity affiliates |
|
1.4 |
|
|
— |
|
|
(0.9 |
) |
|
(4.7 |
) |
||||
Loss (gain) on asset retirements and sales |
|
— |
|
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.6 |
) |
||||
Net foreign currency effects |
|
0.7 |
|
|
0.2 |
|
|
0.6 |
|
|
(0.4 |
) |
||||
Deferred income tax provision |
|
(1.0 |
) |
|
0.4 |
|
|
0.3 |
|
|
2.1 |
|
||||
Net decrease (increase) in operating working capital |
|
1.0 |
|
|
1.0 |
|
|
(3.2 |
) |
|
2.1 |
|
||||
Other operating activity |
|
1.9 |
|
|
(0.2 |
) |
|
0.2 |
|
|
(0.9 |
) |
||||
Net Cash Provided by Operating Activities |
$ |
12.4 |
|
$ |
12.5 |
|
$ |
35.6 |
|
$ |
49.6 |
|
||||
|
|
|
|
|
||||||||||||
INVESTING ACTIVITIES |
|
|
|
|
||||||||||||
Acquisition of businesses, net of cash acquired |
|
— |
|
|
— |
|
|
0.1 |
|
|
(2.9 |
) |
||||
Capital expenditures (Capex) |
|
(4.4 |
) |
|
(3.8 |
) |
|
(15.8 |
) |
|
(12.0 |
) |
||||
Proceeds and deposits related to asset sales and returns of investment |
|
0.3 |
|
|
0.2 |
|
|
0.7 |
|
|
2.6 |
|
||||
Other investing activity |
|
— |
|
|
— |
|
|
(0.1 |
) |
|
0.1 |
|
||||
Net Cash Used for Investing Activities |
$ |
(4.1 |
) |
$ |
(3.7 |
) |
$ |
(15.2 |
) |
$ |
(12.1 |
) |
||||
|
|
|
|
|
||||||||||||
FINANCING ACTIVITIES |
|
|
|
|
||||||||||||
Net change in debt |
|
— |
|
|
(0.3 |
) |
|
(4.1 |
) |
|
(8.5 |
) |
||||
Cash dividends — common stock |
|
(2.8 |
) |
|
(2.7 |
) |
|
(11.3 |
) |
|
(11.0 |
) |
||||
Shares issued for share-based compensation |
|
— |
|
|
0.3 |
|
|
0.3 |
|
|
5.8 |
|
||||
Shares repurchased |
|
(3.4 |
) |
|
(3.8 |
) |
|
(14.9 |
) |
|
(11.3 |
) |
||||
Distributions to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
||||
Net Cash Provided by (Used for) Financing Activities |
$ |
(6.2 |
) |
$ |
(6.4 |
) |
$ |
(30.1 |
) |
$ |
(25.0 |
) |
||||
|
|
|
|
|
||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
0.1 |
|
|
0.1 |
|
|
(0.1 |
) |
|
(0.2 |
) |
||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
2.3 |
|
$ |
2.4 |
|
$ |
(9.8 |
) |
$ |
12.3 |
|
||||
|
|
|
|
|
||||||||||||
RECONCILIATION OF NON-GAAP MEASURES (1) |
|
|
|
|
||||||||||||
Net Cash Provided by Operating Activities |
$ |
12.4 |
|
$ |
12.5 |
|
$ |
35.6 |
|
$ |
49.6 |
|
||||
Less: Net decrease (increase) in operating working capital |
|
1.0 |
|
|
1.0 |
|
|
(3.2 |
) |
|
2.1 |
|
||||
Cash Flow from Operations Excluding Working Capital |
$ |
11.4 |
|
$ |
11.5 |
|
$ |
38.8 |
|
$ |
47.5 |
|
||||
|
|
|
|
|
||||||||||||
Net Cash Provided by Operating Activities |
$ |
12.4 |
|
$ |
12.5 |
|
$ |
35.6 |
|
$ |
49.6 |
|
||||
Less: Capital expenditures |
|
4.4 |
|
|
3.8 |
|
|
15.8 |
|
|
12.0 |
|
||||
Free Cash Flow |
$ |
8.1 |
|
$ |
8.7 |
|
$ |
19.8 |
|
$ |
37.6 |
|
||||
Less: Net decrease (increase) in operating working capital |
|
1.0 |
|
|
1.0 |
|
|
(3.2 |
) |
|
2.1 |
|
||||
Free Cash Flow Excluding Working Capital |
$ |
7.1 |
|
$ |
7.7 |
|
$ |
23.0 |
|
$ |
35.5 |
|
||||
(1) Totals may not match sum of parts due to presentation in billions. |
|
|
|
|
Attachment 4 |
||||||||||||||||||||||||||||||||||||||||||||||
CHEVRON CORPORATION - FINANCIAL REVIEW (Millions of Dollars) (unaudited) |
||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
Year Ended
|
Year Ended
|
||||||||||||||||||||||||||||||||||||||||||
REPORTED EARNINGS |
Pre-
|
Income
|
After-
|
Pre-
|
Income
|
After-
|
Pre-
|
Income
|
After-
|
Pre-
|
Income
|
After-
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
|
|
|
$ |
(1,347 |
) |
|
|
$ |
2,618 |
|
|
|
$ |
4,148 |
|
|
|
$ |
12,621 |
|
||||||||||||||||||||||||||
Int'l Upstream |
|
|
|
2,933 |
|
|
|
|
2,867 |
|
|
|
|
13,290 |
|
|
|
|
17,663 |
|
||||||||||||||||||||||||||
|
|
|
|
470 |
|
|
|
|
1,180 |
|
|
|
|
3,904 |
|
|
|
|
5,394 |
|
||||||||||||||||||||||||||
Int'l Downstream |
|
|
|
677 |
|
|
|
|
591 |
|
|
|
|
2,233 |
|
|
|
|
2,761 |
|
||||||||||||||||||||||||||
All Other |
|
|
|
(474 |
) |
|
|
|
(903 |
) |
|
|
|
(2,206 |
) |
|
|
|
(2,974 |
) |
||||||||||||||||||||||||||
Net Income (Loss) Attributable to Chevron |
$ |
2,259 |
|
|
|
$ |
6,353 |
|
|
|
$ |
21,369 |
|
|
|
$ |
35,465 |
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
SPECIAL ITEMS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Write-offs & impairments |
$ |
(2,324 |
) |
$ |
559 |
$ |
(1,765 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(2,324 |
) |
$ |
559 |
$ |
(1,765 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
||||||||||||
Early contract termination |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(765 |
) |
|
165 |
|
|
(600 |
) |
||||||||||||
Decommissioning obligations |
|
(2,561 |
) |
|
611 |
|
(1,950 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,561 |
) |
|
611 |
|
(1,950 |
) |
|
— |
|
|
— |
|
|
— |
|
||||||||||||
Int'l Upstream |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Asset sale gains |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
328 |
|
|
(128 |
) |
|
200 |
|
||||||||||||
Write-offs & impairments |
|
— |
|
|
— |
|
— |
|
|
(813 |
) |
|
(262 |
) |
|
(1,075 |
) |
|
— |
|
|
— |
|
— |
|
|
(813 |
) |
|
(262 |
) |
|
(1,075 |
) |
||||||||||||
Tax items |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
655 |
|
655 |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Pension settlement costs |
|
— |
|
|
— |
|
— |
|
|
(21 |
) |
|
4 |
|
|
(17 |
) |
|
(53 |
) |
|
13 |
|
(40 |
) |
|
(352 |
) |
|
81 |
|
|
(271 |
) |
||||||||||||
Total Special Items |
$ |
(4,885 |
) |
$ |
1,170 |
$ |
(3,715 |
) |
$ |
(834 |
) |
$ |
(258 |
) |
$ |
(1,092 |
) |
$ |
(4,938 |
) |
$ |
1,838 |
$ |
(3,100 |
) |
$ |
(1,602 |
) |
$ |
(144 |
) |
$ |
(1,746 |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
FOREIGN CURRENCY EFFECTS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Int'l Upstream |
|
|
$ |
(162 |
) |
|
|
$ |
(83 |
) |
|
|
$ |
376 |
|
|
|
$ |
816 |
|
||||||||||||||||||||||||||
Int'l Downstream |
|
|
|
(58 |
) |
|
|
|
(112 |
) |
|
|
|
(12 |
) |
|
|
|
235 |
|
||||||||||||||||||||||||||
All Other |
|
|
|
(259 |
) |
|
|
|
(210 |
) |
|
|
|
(588 |
) |
|
|
|
(382 |
) |
||||||||||||||||||||||||||
Total Foreign Currency Effects |
|
$ |
(479 |
) |
|
|
$ |
(405 |
) |
|
|
$ |
(224 |
) |
|
|
$ |
669 |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
ADJUSTED EARNINGS/(LOSS) * |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
$ |
2,368 |
|
|
|
$ |
2,618 |
|
|
|
$ |
7,863 |
|
|
|
$ |
13,221 |
|
||||||||||||||||||||||||||
Int'l Upstream |
|
|
|
3,095 |
|
|
|
|
4,025 |
|
|
|
|
12,259 |
|
|
|
|
17,722 |
|
||||||||||||||||||||||||||
|
|
|
|
470 |
|
|
|
|
1,180 |
|
|
|
|
3,904 |
|
|
|
|
5,394 |
|
||||||||||||||||||||||||||
Int'l Downstream |
|
|
|
735 |
|
|
|
|
703 |
|
|
|
|
2,245 |
|
|
|
|
2,526 |
|
||||||||||||||||||||||||||
All Other |
|
|
|
(215 |
) |
|
|
|
(676 |
) |
|
|
|
(1,578 |
) |
|
|
|
(2,321 |
) |
||||||||||||||||||||||||||
Total Adjusted Earnings/(Loss) |
$ |
6,453 |
|
|
|
$ |
7,850 |
|
|
|
$ |
24,693 |
|
|
|
$ |
36,542 |
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
Total Adjusted Earnings/(Loss) per share |
$ |
3.45 |
|
|
|
$ |
4.09 |
|
|
|
$ |
13.13 |
|
|
|
$ |
18.83 |
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
* Adjusted Earnings/(Loss) is defined as Net Income (loss) attributable to Chevron Corporation excluding special items and foreign currency effects. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240202391329/en/
Randy Stuart -- +1 713-283-8609
Source: Chevron Corporation
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