Oil giant Chevron Corp (NYSE: CVX) shares are trading slightly lower after the company reported second-quarter 2024 results.
Revenues and other income of $51.181 billion beat the consensus of $50.795 billion.
Worldwide net oil-equivalent production rose to 3,292 MBOED from 2,959 MBOED a year ago, driven by the successful integration of PDC Energy and strong performance in the Permian and Denver-Julesburg (DJ) Basins.
Chevron also secured agreements in Namibia, Brazil, Equatorial Guinea, and Angola to expand its global exploration acreage.
Adjusted net earnings were $4.68 billion, with adjusted EPS being $2.55 (down from $3.08 YoY) in the quarter, missing the consensus of $2.93.
Second-quarter earnings decreased due to reduced margins on refined product sales, the lack of favorable tax items from the previous year, and adverse foreign currency impacts.
U.S. Upstream reported second-quarter earnings of $2.161 billion versus $1.640 billion a year ago. The earnings increase was driven by higher sales volumes and realizations.
International upstream earnings fell to $2.309 billion from $3.296 billion a year ago due to the lack of favorable tax effects from the prior year, reduced sales volumes, unfavorable foreign currency impacts, and lower natural gas realizations.
U.S. downstream earnings declined to $280 million from $1.08 billion due to reduced margins on refined product sales and increased operating expenses.
International downstream earnings decreased to $317 million from $426 million the prior year quarter, on lower margins on refined product sales.
CVX returned $6 billion of cash to shareholders during the quarter, including dividends of $3 billion and share repurchases of $3 billion.
Dividend: The company declared a quarterly dividend of $1.63 per share, payable on September 10 to shareholders of record as of August 19.
Operating cash flow totaled $6.3 billion, flat Y/Y, as reduced earnings were offset by higher dividends from equity affiliates and lower working capital.
CVX held cash and equivalents of $4.008 billion as of June-end.
In a separate release, Chevron announced it will relocate its headquarters from San Ramon, California, to Houston, Texas, and make changes to its senior leadership.
Chevron Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson will move to Houston before the end of 2024 to co-locate with other senior leaders.
The company expects all corporate functions to migrate to Houston over the next five years.
Price Action: CVX shares are down 0.10% at $152.47 premarket at the last check Friday.