Chevron Reports Second Quarter 2023 Results

  • Reported earnings of $6.0 billion; adjusted earnings of $5.8 billion
  • Record Permian Basin production, 11 percent higher than the year-ago period
  • Record shareholder distributions of $7.2 billion
  • PDC Energy, Inc. acquisition expected to close in August 2023

SAN RAMON, Calif.--()--Chevron Corporation (NYSE: CVX) reported earnings of $6.0 billion ($3.20 per share - diluted) for second quarter 2023, compared with $11.6 billion ($5.95 per share - diluted) in second quarter 2022. Included in the current quarter was a one-time tax benefit of $225 million related to impairments that were recognized in prior periods. Foreign currency effects increased earnings by $10 million. Adjusted earnings of $5.8 billion ($3.08 per share - diluted) in second quarter 2023 compared to adjusted earnings of $11.4 billion ($5.82 per share - diluted) in second quarter 2022. For a reconciliation of adjusted earnings, see Attachment 4.

Earnings & Cash Flow Summary

 

 

 

 

 

YTD

 

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Total Earnings / (Loss)

$ MM

$

6,010

 

$

6,574

 

$

11,622

 

$

12,584

 

$

17,881

 

Upstream

$ MM

$

4,936

 

$

5,161

 

$

8,558

 

$

10,097

 

$

15,492

 

Downstream

$ MM

$

1,507

 

$

1,800

 

$

3,523

 

$

3,307

 

$

3,854

 

All Other

$ MM

$

(433

)

$

(387

)

$

(459

)

$

(820

)

$

(1,465

)

Earnings Per Share - Diluted

$/Share

$

3.20

 

$

3.46

 

$

5.95

 

$

6.66

 

$

9.17

 

Adjusted Earnings (1)

$ MM

$

5,775

 

$

6,744

 

$

11,365

 

$

12,519

 

$

17,908

 

Adjusted Earnings Per Share - Diluted (1)

$/Share

$

3.08

 

$

3.55

 

$

5.82

 

$

6.63

 

$

9.18

 

Cash Flow From Operations (CFFO)

$ B

$

6.3

 

$

7.2

 

$

13.8

 

$

13.5

 

$

21.8

 

CFFO Excluding Working Capital (1)

$ B

$

9.4

 

$

9.0

 

$

13.3

 

$

18.5

 

$

22.2

 

(1) See non-GAAP reconciliation in attachments

“Our quarterly financial results remain strong, and we returned record cash to shareholders,” said Mike Wirth, Chevron’s chairman and chief executive officer. The company has delivered more than 12 percent ROCE for eight straight quarters and returned $7.2 billion to shareholders in the quarter, an increase of 37 percent from the year-ago period.

“Strong execution resulted in record Permian Basin production this quarter,” Wirth continued. Chevron plans to further increase its investments in the United States with the announced agreement to acquire PDC Energy, Inc. “Our consistent performance and disciplined use of capital are driving superior value for our shareholders,” Wirth concluded.

Financial and Business Highlights

 

 

 

 

 

YTD

 

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Return on Capital Employed (ROCE)

%

 

13.4

%

 

14.6

%

 

26.5

%

 

14.1

%

 

20.7

%

Capital Expenditures (Capex)

$ B

$

3.8

 

$

3.0

 

$

3.2

 

$

6.8

 

$

5.1

 

Affiliate Capex

$ B

$

1.0

 

$

0.9

 

$

0.8

 

$

1.8

 

$

1.5

 

Free Cash Flow (1)

$ B

$

2.5

 

$

4.2

 

$

10.6

 

$

6.7

 

$

16.7

 

Free Cash Flow ex. working capital (1)

$ B

$

5.7

 

$

6.0

 

$

10.1

 

$

11.7

 

$

17.1

 

Debt Ratio (end of period)

%

 

12.0

%

 

12.7

%

 

14.6

%

 

12.0

%

 

14.6

%

Net Debt Ratio (1) (end of period)

%

 

7.0

%

 

4.4

%

 

8.3

%

 

7.0

%

 

8.3

%

Net Oil-Equivalent Production

MBOED

 

2,959

 

 

2,979

 

 

2,896

 

 

2,968

 

 

2,978

 

(1) See non-GAAP reconciliation in attachments

Financial Highlights

  • Second quarter 2023 earnings decreased compared to second quarter 2022 primarily due to lower upstream realizations and lower margins on refined product sales.
  • Sales and other operating revenues in second quarter 2023 were $47.2 billion, down from $65.4 billion in the year-ago period primarily due to lower commodity prices.
  • Worldwide net oil-equivalent production was up 2 percent from the year-ago quarter primarily due to record Permian Basin production of 772,000 barrels of oil equivalent per day.
  • Capex in the second quarter of 2023 was up 18 percent from a year ago primarily due to higher investment in the United States.
  • Quarterly shareholder distributions were a record $7.2 billion during the quarter, including dividends of $2.8 billion and share repurchases of $4.4 billion (over 27 million shares repurchased during the quarter and nearly 50 million shares year-to-date).
  • The company’s Board of Directors declared a quarterly dividend of one dollar and fifty-one cents ($1.51) per share, payable September 11, 2023, to all holders of common stock as shown on the transfer records of the corporation at the close of business on August 18, 2023.

Business Highlights

  • Announced an agreement to acquire PDC Energy, Inc. in an all-stock transaction, with closing anticipated in August 2023. This acquisition is expected to add $1 billion to annual free cash flow.
  • Achieved first natural gas production from the Gorgon Stage 2 development in Australia, supporting long-term energy supply in the Asia-Pacific region.
  • Received approvals to extend Block 0 concession in Angola through 2050.
  • Reached final investment decision with partners to build a third gathering pipeline that is expected to increase production capacity from approximately 1.2 to nearly 1.4 billion cubic feet per day at the Leviathan field in Israel.
  • Announced agreements to conduct pilot tests on advanced closed loop geothermal technology in Japan.

Segment Highlights

Upstream

 

 

 

 

 

YTD

U.S. Upstream

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Earnings / (Loss)

$ MM

$

1,640

$

1,781

$

3,367

$

3,421

$

6,605

Net Oil-Equivalent Production

MBOED

 

1,219

 

1,167

 

1,172

 

1,193

 

1,178

Liquids Production

MBD

 

916

 

877

 

888

 

896

 

884

Natural Gas Production

MMCFD

 

1,817

 

1,742

 

1,705

 

1,780

 

1,766

Liquids Realization

$/BBL

$

56

$

59

$

89

$

58

$

83

Natural Gas Realization

$/MCF

$

1.23

$

2.58

$

6.22

$

1.88

$

5.13

  • U.S. upstream earnings were lower than a year ago, primarily on lower realizations, partially offset by lower operating expenses due to the absence of a 2022 early contract termination and higher sales volumes.
  • U.S. net oil-equivalent production was up from second quarter 2022 and set a new quarterly record primarily due to growth in the Permian Basin.

 

 

 

 

 

YTD

International Upstream

Unit

2Q 2023

1Q 2023

 

2Q 2022

2Q 2023

2Q 2022

Earnings / (Loss) (1)

$ MM

$

3,296

$

3,380

 

$

5,191

$

6,676

$

8,887

Net Oil-Equivalent Production

MBOED

 

1,740

 

1,812

 

 

1,724

 

1,775

 

1,800

Liquids Production

MBD

 

827

 

849

 

 

799

 

838

 

828

Natural Gas Production

MMCFD

 

5,478

 

5,775

 

 

5,548

 

5,624

 

5,832

Liquids Realization

$/BBL

$

68

$

69

 

$

102

$

68

$

98

Natural Gas Realization

$/MCF

$

7.50

$

9.00

 

$

9.23

$

8.25

$

9.04

(1) Includes foreign currency effects

$ MM

$

10

$

(56

)

$

603

$

(46)

$

459

  • International upstream earnings were lower than a year ago primarily due to lower realizations and lower foreign currency effects, partially offset by favorable tax items and higher sales volumes.
  • Net oil-equivalent production was up 16,000 barrels per day from a year earlier primarily due to lower impacts from turnarounds in Australia, partially offset by shutdowns in Canada due to wildfires.

Downstream

 

 

 

 

 

YTD

U.S. Downstream

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Earnings / (Loss)

$ MM

$

1,081

$

977

$

2,440

$

2,058

$

2,926

Refinery Crude Oil Inputs

MBD

 

962

 

890

 

881

 

926

 

898

Refined Product Sales

MBD

 

1,295

 

1,252

 

1,210

 

1,274

 

1,214

  • U.S. downstream earnings were lower compared to a year ago primarily due to lower margins on refined product sales and higher operating expenses.
  • Refinery crude oil inputs increased 9 percent compared to a year ago, primarily due to the absence of 2022 turnaround activity at the Richmond, California refinery.
  • Refinery product sales were up 7 percent from a year ago, primarily due to higher renewable fuel sales following the Renewable Energy Group, Inc. acquisition and higher demand for gasoline and jet fuel.

 

 

 

 

 

 

YTD

International Downstream

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Earnings / (Loss) (1)

$ MM

$

426

$

823

$

1,083

$

1,249

$

928

Refinery Crude Oil Inputs

MBD

 

623

 

628

 

634

 

625

 

626

Refined Product Sales

MBD

 

1,453

 

1,460

 

1,337

 

1,456

 

1,332

(1) Includes foreign currency effects

$ MM

$

4

$

18

$

145

$

22

$

168

  • International downstream earnings were lower compared to a year ago primarily due to lower margins on refined product sales and lower foreign currency effects.
  • Refinery crude oil inputs decreased 2 percent from the year-ago period as refinery runs decreased due to planned turnarounds.
  • Refined product sales increased 9 percent from the year-ago period, primarily due to higher demand for jet fuel as air travel increased in Asia.

All Other

 

 

 

 

 

YTD

All Other

Unit

2Q 2023

1Q 2023

2Q 2022

2Q 2023

2Q 2022

Net charges (1)

$ MM

$

(433

)

$

(387

)

$

(459

)

 

(820

)

 

(1,465

)

(1) Includes foreign currency effects

$ MM

$

(4

)

$

(2

)

$

(80

)

$

(6

)

$

(177

)

  • All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities and technology companies.
  • Net charges decreased slightly compared to a year ago primarily due to higher interest income and a favorable swing in foreign currency effects, partially offset by higher employee benefit costs.

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 traditional 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 second quarter 2023 earnings with security analysts will take place on Friday, July 28, 2023, 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, 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 U.S. GAAP. A reconciliation to net income (loss) attributable to Chevron Corporation is shown in Attachment 4.

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.

Expected incremental annual free cash flow of $1 billion following the PDC Energy, Inc. acquisition is a forward-looking non-GAAP measure. It assumes Brent oil price of $70 per barrel, Henry Hub gas price of $3.50 per MCF, approximately $100 million of annual operating expense synergies and approximately $400 million of annual capex efficiencies. However, due to its forward-looking nature, management cannot reliably predict certain other necessary components of the most directly comparable forward-looking GAAP measure and is therefore unable to provide a quantitative reconciliation.

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 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 (including coronavirus (COVID-19)) 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 Russia and Ukraine and the global response to such conflict; changing refining, marketing and chemicals margins; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; development of large carbon capture and offset markets; the results of operations and financial condition of the company’s suppliers, vendors, partners and equity affiliates; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company’s control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes undertaken or required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from pending or future litigation; the ability to successfully satisfy the requisite closing conditions and consummate the proposed acquisition of PDC Energy, Inc.; the ability to successfully integrate the operations of Chevron and PDC Energy and achieve the anticipated benefits from the transaction, including the expected incremental annual free cash flow; the company’s future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government mandated sales, divestitures, recapitalizations, taxes and tax audits, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; higher inflation and related impacts; material reductions in corporate liquidity and access to debt markets; the receipt of required Board authorizations to implement capital allocation strategies, including future stock repurchase programs and dividend payments; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company’s ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 26 of the company's 2022 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.

Attachment 1

CHEVRON CORPORATION - FINANCIAL REVIEW

(Millions of Dollars, Except Per-Share Amounts)

(unaudited)

 

CONSOLIDATED STATEMENT OF INCOME(1)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

REVENUES AND OTHER INCOME

2023

 

2022

 

2023

 

2022

Sales and other operating revenues

$

47,216

 

 

$

65,372

 

$

96,058

 

$

117,686

Income (loss) from equity affiliates

 

1,240

 

 

 

2,467

 

 

2,828

 

 

4,552

Other income (loss)

 

440

 

 

 

923

 

 

803

 

 

897

Total Revenues and Other Income

 

48,896

 

 

 

68,762

 

 

99,689

 

 

123,135

COSTS AND OTHER DEDUCTIONS

 

 

 

 

 

 

 

Purchased crude oil and products

 

28,984

 

 

 

40,684

 

 

58,391

 

 

74,095

Operating expenses (2)

 

7,224

 

 

 

7,168

 

 

14,164

 

 

13,837

Exploration expenses

 

169

 

 

 

196

 

 

359

 

 

405

Depreciation, depletion and amortization

 

3,521

 

 

 

3,700

 

 

7,047

 

 

7,354

Taxes other than on income

 

1,041

 

 

 

882

 

 

2,137

 

 

2,122

Interest and debt expense

 

120

 

 

 

129

 

 

235

 

 

265

Total Costs and Other Deductions

 

41,059

 

 

 

52,759

 

 

82,333

 

 

98,078

Income (Loss) Before Income Tax Expense

 

7,837

 

 

 

16,003

 

 

17,356

 

 

25,057

Income tax expense (benefit)

 

1,829

 

 

 

4,288

 

 

4,743

 

 

7,065

Net Income (Loss)

 

6,008

 

 

 

11,715

 

 

12,613

 

 

17,992

Less: Net income (loss) attributable to noncontrolling interests

 

(2

)

 

 

93

 

 

29

 

 

111

NET INCOME (LOSS) ATTRIBUTABLE TO

CHEVRON CORPORATION

$

6,010

 

 

$

11,622

 

$

12,584

 

$

17,881

 

 

 

 

 

 

 

 

(1) Prior year data has been reclassified in certain cases to conform to the 2023 presentation basis.

(2) 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

$

3.22

 

 

$

5.98

 

$

6.70

 

$

9.21

- Diluted

$

3.20

 

 

$

5.95

 

$

6.66

 

$

9.17

Weighted Average Number of Shares Outstanding (000's)

 

 

 

 

- Basic

 

1,867,165

 

 

 

1,947,703

 

 

1,879,363

 

 

1,941,719

- Diluted

 

1,875,508

 

 

 

1,957,109

 

 

1,888,077

 

 

1,950,860

 

 

 

 

 

 

 

 

Note: Shares outstanding (excluding 14 million associated with Chevron’s Benefit Plan Trust) were 1,853 million and 1,901 million at June 30, 2023, and December 31, 2022, respectively.

EARNINGS BY MAJOR OPERATING AREA

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

Upstream

 

 

 

 

 

 

 

United States

$

1,640

 

 

$

3,367

 

 

$

3,421

 

 

$

6,605

 

International

 

3,296

 

 

 

5,191

 

 

 

6,676

 

 

 

8,887

 

Total Upstream

 

4,936

 

 

 

8,558

 

 

 

10,097

 

 

 

15,492

 

Downstream

 

 

 

 

 

 

 

United States

 

1,081

 

 

 

2,440

 

 

 

2,058

 

 

 

2,926

 

International

 

426

 

 

 

1,083

 

 

 

1,249

 

 

 

928

 

Total Downstream

 

1,507

 

 

 

3,523

 

 

 

3,307

 

 

 

3,854

 

All Other

 

(433

)

 

 

(459

)

 

 

(820

)

 

 

(1,465

)

NET INCOME (LOSS) ATTRIBUTABLE TO

CHEVRON CORPORATION

$

6,010

 

 

$

11,622

 

 

$

12,584

 

$

17,881

Attachment 2

CHEVRON CORPORATION - FINANCIAL REVIEW

(Millions of Dollars)

(unaudited)

 

SELECTED BALANCE SHEET ACCOUNT DATA (Preliminary)

 

June 30,
2023

 

December 31,
2022

Cash and cash equivalents

 

 

 

 

$

9,292

 

 

$

17,678

 

Marketable securities

 

 

 

 

$

318

 

 

$

223

 

Total assets

 

 

 

 

$

251,779

 

 

$

257,709

 

Total debt

 

 

 

 

$

21,514

 

 

$

23,339

 

Total Chevron Corporation stockholders' equity

 

 

 

 

$

158,325

 

 

$

159,282

 

Noncontrolling interests

 

 

 

 

$

973

 

 

$

960

 

 

 

 

 

 

 

 

 

SELECTED FINANCIAL RATIOS

 

 

 

 

Total debt plus total stockholders’ equity

 

$

179,839

 

 

$

182,621

 

Debt ratio (Total debt / Total debt plus stockholders’ equity)

 

 

 

 

 

12.0

%

 

 

12.8

%

 

 

 

 

 

 

 

 

Adjusted debt (Total debt less cash and cash equivalents and marketable securities)

 

$

11,904

 

 

$

5,438

 

Adjusted debt plus total stockholders’ equity

 

$

170,229

 

 

$

164,720

 

Net debt ratio (Adjusted debt / Adjusted debt plus total stockholders’ equity)

 

 

7.0

%

 

 

3.3

%

RETURN ON CAPITAL EMPLOYED (ROCE)

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2023

 

2022

 

2023

 

2022

Total reported earnings

$

6,010

 

 

$

11,622

 

 

$

12,584

 

 

$

17,881

 

Non-controlling interest

 

(2

)

 

 

93

 

 

 

29

 

 

 

111

 

Interest expense (A/T)

 

111

 

 

 

120

 

 

 

217

 

 

 

246

 

ROCE earnings

 

6,119

 

 

 

11,835

 

 

 

12,830

 

 

 

18,238

 

Annualized ROCE earnings

 

24,476

 

 

 

47,340

 

 

 

25,660

 

 

 

36,476

 

Average capital employed*

 

182,226

 

 

 

178,615

 

 

 

182,197

 

 

 

176,053

 

ROCE

 

13.4

%

 

 

26.5

%

 

 

14.1

%

 

 

20.7

%

*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
June 30,

 

Six Months Ended
June 30,

CAPEX BY SEGMENT

2023

 

2022

 

2023

 

2022

United States

 

 

 

 

 

 

 

Upstream

$

2,296

 

$

1,549

 

$

4,214

 

$

2,836

Downstream

 

379

 

 

715

 

 

710

 

 

838

Other

 

90

 

 

86

 

 

121

 

 

128

Total United States

 

2,765

 

 

2,350

 

 

5,045

 

 

3,802

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

Upstream

 

940

 

 

621

 

 

1,662

 

 

1,101

Downstream

 

48

 

 

208

 

 

78

 

 

235

Other

 

4

 

 

5

 

 

10

 

 

6

Total International

 

992

 

 

834

 

 

1,750

 

 

1,342

CAPEX

$

3,757

 

$

3,184

 

$

6,795

 

$

5,144

 

 

 

 

 

 

 

 

AFFILIATE CAPEX (not included above):

 

 

 

 

 

 

 

Upstream

$

615

 

$

602

 

$

1,254

 

$

1,179

Downstream

 

361

 

 

207

 

 

591

 

 

355

AFFILIATE CAPEX

$

976

 

$

809

 

$

1,845

 

$

1,534

Attachment 3

CHEVRON CORPORATION - FINANCIAL REVIEW

(Billions of Dollars)

(unaudited)

 

SUMMARIZED STATEMENT OF CASH FLOWS (Preliminary)(1)

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

OPERATING ACTIVITIES

2023

 

2022

 

2023

 

2022

Net Income (Loss)

$

6.0

 

 

$

11.7

 

 

$

12.6

 

 

$

18.0

 

Adjustments

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

3.5

 

 

 

3.7

 

 

 

7.0

 

 

 

7.4

 

Distributions more (less) than income from equity affiliates

 

(0.5

)

 

 

(1.7

)

 

 

(1.4

)

 

 

(3.2

)

Loss (gain) on asset retirements and sales

 

 

 

 

(0.4

)

 

 

 

 

 

(0.5

)

Net foreign currency effects

 

0.1

 

 

 

(0.5

)

 

 

0.1

 

 

 

(0.2

)

Deferred income tax provision

 

0.7

 

 

 

0.7

 

 

 

1.5

 

 

 

1.3

 

Net decrease (increase) in operating working capital

 

(3.1

)

 

 

0.5

 

 

 

(4.9

)

 

 

(0.4

)

Other operating activity

 

(0.4

)

 

 

(0.3

)

 

 

(1.4

)

 

 

(0.6

)

Net Cash Provided by Operating Activities

$

6.3

 

 

$

13.8

 

 

$

13.5

 

 

$

21.8

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

 

 

(2.9

)

 

 

 

 

 

(2.9

)

Capital expenditures (Capex)

 

(3.8

)

 

 

(3.2

)

 

 

(6.8

)

 

 

(5.1

)

Proceeds and deposits related to asset sales and returns of investment

 

0.1

 

 

 

1.1

 

 

 

0.3

 

 

 

2.3

 

Other investing activity

 

(0.3

)

 

 

 

 

 

(0.3

)

 

 

 

Net Cash Used for Investing Activities

$

(3.9

)

 

$

(5.0

)

 

$

(6.8

)

 

$

(5.6

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Net change in debt

 

(1.6

)

 

 

(3.7

)

 

 

(1.7

)

 

 

(5.7

)

Cash dividends — common stock

 

(2.8

)

 

 

(2.8

)

 

 

(5.7

)

 

 

(5.5

)

Shares issued for share-based compensation

 

 

 

 

0.8

 

 

 

0.2

 

 

 

5.5

 

Shares repurchased

 

(4.4

)

 

 

(2.5

)

 

 

(8.1

)

 

 

(3.8

)

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by (Used for) Financing Activities

$

(8.7

)

 

$

(8.1

)

 

$

(15.3

)

 

$

(9.5

)

 

 

 

 

 

 

 

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

(0.1

)

 

 

(0.1

)

 

 

(0.2

)

 

 

(0.1

)

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

$

(6.5

)

 

$

0.6

 

 

$

(8.7

)

 

$

6.6

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NON-GAAP MEASURES (1)

 

 

 

 

 

 

 

Net Cash Provided by Operating Activities

$

6.3

 

 

$

13.8

 

 

$

13.5

 

 

$

21.8

 

Less: Net decrease (increase) in operating working capital

 

(3.1

)

 

 

0.5

 

 

 

(4.9

)

 

 

(0.4

)

Cash Flow from Operations Excluding Working Capital

$

9.4

 

 

$

13.3

 

 

$

18.5

 

 

$

22.2

 

 

 

 

 

 

 

 

 

Net Cash Provided by Operating Activities

$

6.3

 

 

$

13.8

 

 

$

13.5

 

 

$

21.8

 

Less: Capital expenditures

 

3.8

 

 

 

3.2

 

 

 

6.8

 

 

 

5.1

 

Free Cash Flow

$

2.5

 

 

$

10.6

 

 

$

6.7

 

 

$

16.7

 

Less: Net decrease (increase) in operating working capital

 

(3.1

)

 

 

0.5

 

 

 

(4.9

)

 

 

(0.4

)

Free Cash Flow Excluding Working Capital

$

5.7

 

 

$

10.1

 

 

$

11.7

 

 

$

17.1

 

(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
June 30, 2023

 

Three Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2023

 

Six Months Ended
June 30, 2022

 

REPORTED EARNINGS

Pre-
Tax

Income
Tax

After-
Tax

 

Pre-
Tax

Income
Tax

After-
Tax

 

Pre-
Tax

Income
Tax

After-
Tax

 

Pre-
Tax

Income
Tax

After-
Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Upstream

 

 

$

1,640

 

 

 

 

$

3,367

 

 

 

 

$

3,421

 

 

 

 

$

6,605

 

Int'l Upstream

 

 

 

3,296

 

 

 

 

 

5,191

 

 

 

 

 

6,676

 

 

 

 

 

8,887

 

U.S. Downstream

 

 

 

1,081

 

 

 

 

 

2,440

 

 

 

 

 

2,058

 

 

 

 

 

2,926

 

Int'l Downstream

 

 

 

426

 

 

 

 

 

1,083

 

 

 

 

 

1,249

 

 

 

 

 

928

 

All Other

 

 

 

(433

)

 

 

 

 

(459

)

 

 

 

 

(820

)

 

 

 

 

(1,465

)

Net Income (Loss) Attributable to Chevron

$

6,010

 

 

 

 

$

11,622

 

 

 

 

$

12,584

 

 

 

 

$

17,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SPECIAL ITEMS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Early contract termination

$

$

$

 

 

$

(765

)

$

165

 

$

(600

)

 

$

$

$

 

 

$

(765

)

$

165

 

$

(600

)

Int'l Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset sale gains

 

 

 

 

 

 

328

 

 

(128

)

 

200

 

 

 

 

 

 

 

 

328

 

 

(128

)

 

200

 

 

Tax items

 

 

225

 

225

 

 

 

 

 

 

 

 

 

 

 

95

 

95

 

 

 

 

 

 

 

 

All Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension settlement costs

 

 

 

 

 

 

(12

)

 

1

 

 

(11

)

 

 

 

 

 

 

 

(98

)

 

21

 

 

(77

)

Total Special Items

$

$

225

$

225

 

 

$

(449

)

$

38

 

$

(411

)

 

$

$

95

$

95

 

 

$

(535

)

$

58

 

$

(477

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN CURRENCY EFFECTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Int'l Upstream

 

 

$

10

 

 

 

 

$

603

 

 

 

 

$

(46

)

 

 

 

$

459

 

Int'l Downstream

 

 

 

4

 

 

 

 

 

145

 

 

 

 

 

22

 

 

 

 

 

168

 

All Other

 

 

 

(4

)

 

 

 

 

(80

)

 

 

 

 

(6

)

 

 

 

 

(177

)

Total Foreign Currency Effects

 

$

10

 

 

 

 

$

668

 

 

 

 

$

(30

)

 

 

 

$

450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EARNINGS/(LOSS) *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Upstream

 

 

$

1,640

 

 

 

 

$

3,967

 

 

 

 

$

3,421

 

 

 

 

$

7,205

 

Int'l Upstream

 

 

 

3,061

 

 

 

 

 

4,388

 

 

 

 

 

6,627

 

 

 

 

 

8,228

 

U.S. Downstream

 

 

 

1,081

 

 

 

 

 

2,440

 

 

 

 

 

2,058

 

 

 

 

 

2,926

 

Int'l Downstream

 

 

 

422

 

 

 

 

 

938

 

 

 

 

 

1,227

 

 

 

 

 

760

 

All Other

 

 

 

(429

)

 

 

 

 

(368

)

 

 

 

 

(814

)

 

 

 

 

(1,211

)

Total Adjusted Earnings/(Loss)

$

5,775

 

 

 

 

$

11,365

 

 

 

 

$

12,519

 

 

 

 

$

17,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted Earnings/(Loss) per share

$

3.08

 

 

 

 

$

5.82

 

 

 

 

$

6.63

 

 

 

 

$

9.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Adjusted Earnings/(Loss) is defined as Net Income (loss) attributable to Chevron Corporation excluding special items and foreign currency effects.

 

Contacts

Randy Stuart -- +1 713-283-8609

Contacts

Randy Stuart -- +1 713-283-8609