Chevron Q2 Earnings Beat Estimates as Production Hits Record

Core Insights - Chevron Corporation reported adjusted second-quarter earnings per share of $1.77, exceeding the Zacks Consensus Estimate of $1.70, driven by record production in the upstream segment [1][9] - The company's revenue for the quarter was $44.8 billion, falling short of the Zacks Consensus Estimate of $47.1 billion and representing a 12.4% year-over-year decline [2] - The completion of the Hess acquisition is expected to enhance Chevron's portfolio, supporting long-term production and free cash flow growth [3][9] Segment Performance - Upstream production reached 3,396 thousand oil-equivalent barrels per day (MBOE/d), a 3.2% increase year-over-year, with U.S. output hitting an all-time high of 1,695 MBOE/d [4][9] - Despite increased volumes, upstream segment profit fell 39% to $2.7 billion due to lower liquids realizations, which account for over 60% of total production [5] - Average realized liquids prices in the U.S. were $47.77 per barrel, down more than 20% from the previous year, while international prices decreased 21.4% to $58.88 per barrel [6] Cash Flows and Capital Expenditure - Chevron generated $8.6 billion in cash flow from operations, up from $6.3 billion in the prior year, with free cash flow for the quarter at $4.9 billion [7] - The company spent approximately $3.7 billion on capital and exploratory expenditures during the quarter, a decrease from $4 billion in the year-ago period [8] Balance Sheet - As of June 30, Chevron had $4.1 billion in cash and cash equivalents, total debt of $29.5 billion, and a debt-to-total capitalization ratio of about 16.8% [11]