Chevron surpasses Wall Street profit expectations with record output

Chevron surpassed analyst expectations for the second quarter profit on Friday, as record oil production and lower capital spending helped to offset lower crude prices. The No. The No. The deal also includes a stake Exxon's Stabroek Block offshore Guyana oilfield. This should help Chevron fund dividends well into the 2030s, as well as make its earnings more resistant to fluctuations in oil prices.

The Organization of the Petroleum Exporting Countries (OPEC+) and its allies increased production, which led to a 11% drop in international crude prices during the third quarter.

Exxon Mobil beat Wall Street expectations for the second quarter profit as well on Friday.

Eimear Bonner, Chief Financial Officer of Chevron, said in an interview that the company had a strong performance with record production.

The company's outstanding operational performance is a major contributor to the financial performance.

LSEG data shows that adjusted earnings for the quarter ending June 30 totaled $3.1 billion or $1.77 a share. This was higher than analyst consensus estimates of $1.70 a share.

Global production reached 3.4 million barrels equivalent per day (boed), up from 3.3 millions boed during the same period in 2013. The Permian basin, the largest U.S. oilfield in terms of production, produced 1 million barrels equivalent per day during the third quarter.

Maintenance is expected to lower production by 60,000 boed in the third quarter.

In a recent research note, Biraj Borkhataria said, "Following uncertainty lifted by the Hess transaction, Chevron has jumped into action with a set of strong results that have surpassed market expectations."

Capital expenditures fell 7.5% compared to the same period in the previous year as the company spent less money on its downstream operations.

Chevron has raised its guidance for free cash flow in 2026 from $12.5 billion to $12.5 Billion.

The company paid out $2.9 billion as dividends during the third quarter and purchased $2.6 billion of shares.

Chevron's CFO Bonner has stated that the Hess purchase will enable it to increase dividends, and share repurchases, over the long-term. However, for this year at least, the company does not expect its guidance between $10 billion to $20 billion of full-year shares repurchases to be changed.

She said, "We are still within the range. We have a good program. And we won't see any change until we see a significant and sustained shift in commodity prices."

The earnings from oil and natural gas production, which makes up the bulk Chevron's profits, fell from $4.5 billion to $2.7 billion.

(source: Reuters)