Chevron (CVX), a leading multinational energy company specializing in oil and natural gas production, has reported its Q3 earnings for 2024, showcasing some notable figures and updates from both financial and operational fronts. Earnings were $4.5 billion, or $2.48 per share, down from $6.5 billion a year ago. Despite this decline, Chevron’s stock rose 3% in regular trading hours on the earnings beat, reflecting investor confidence. The company continued to push forward with significant operations in the U.S. Gulf of Mexico and ongoing asset sales in Canada.
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Chevron’s Earnings Per Share (EPS) Drops
Chevron’s EPS for Q3 came in at $2.48, below last year’s $3.48 but above the analysts’ consensus estimate of $2.43. The company attributed the drop to lower profit margins on refined products and the absence of favorable tax items that had boosted prior earnings.
CVX Returns Record Cash to Shareholders
Chevron returned a record-breaking $7.7 billion to shareholders, which included $4.7 billion in share repurchases and $2.9 billion in dividends. This commitment demonstrates Chevron’s ongoing priority of shareholder returns, even in a tougher economic environment.
Chevron Expands Production in Key Areas
Chevron’s production increased by 7% year-over-year, driven by record output in the Permian Basin and the recent acquisition of PDC Energy. The company also started new deepwater projects in the Gulf of Mexico, marking significant advancements in offshore energy production.
Chevron is also restructuring its asset portfolio, announcing a $6.5 billion sale of Canadian assets. This move aligns with the company’s goal to focus on high-performing assets and streamline operations.
Is CVX Stock a Buy, Sell or Hold?
Analysts remain cautiously optimistic about CVX stock, with a Moderate Buy consensus rating based on nine Buys and four Holds. Over the past year, CVX has increased by more than 10%, and the average CVX price target of $171.50 implies an upside potential of 11.9% from current levels. These analyst ratings are likely to change following CVX’s results today.
