The start of 2024 marked the Chevron Corp.’s ninth consecutive quarter with adjusted earnings of over $5 billion.
Reporting first quarter results from headquarters in San Ramon, Calif., Chevron Chairman-CEO Mike Wirth added that the company’s adjusted return on capital employed was above 12 percent and it returned $6 billion in cash to its shareholders.
“We also grew production by more than 10 percent from the same quarter last year and announced final investment decisions to grow our renewable fuels and hydrogen businesses,” Wirth said. “We announced our third Future Energy Fund focused on venture investments in lower-carbon technologies.
“The merger with Hess is advancing and we intend to certify substantial compliance in the coming weeks.”
Wirth said Chevron’s Tengizchevroil project in Kazakhstan achieved start-up of its water pressure management project in April with the first inlet separator and pressure boost compressor going into service and with the conversion of the first metering station to low pressure being complete.
“Later this quarter we expect a second pressure boost compressor to go online and a third gas turbine generator to provide power to the Tengiz grid,” he said. “We continue to make significant progress and we expect to have additional major equipment ready for operations in the third quarter.”
Chief Financial Officer Eimear Bonner reported first quarter earnings of $5.5 billion or $2.97 per share and adjusted earnings of $5.4 billion or $2.93 per share.
“Cash flow from operations was impacted by an approximate $300-million international upstream asset retirement obligation settlement payment and $200 million for the expansion of the retail marketing network,” Bonner said. “Chevron delivered on all its financial priorities during the quarter for an 8-percent increase in dividend per share.”
He said adjusted first quarter earnings were down $1.3 billion versus last year and that adjusted upstream earnings were down modestly.
“Depreciation, depletion and amortization were higher due to the PDC Energy acquisition and Permian Basin growth,” Bonner said. “Adjusted downstream earnings were lower mainly due to lower refining margins and timing effects.
“Worldwide oil equivalent production was the highest first quarter in our company’s history. Production was up over 12 percent from last year including an increase of 35 percent in the United States largely due to the PDC Energy acquisition and organic growth in the Permian.”
