Post Earnings Coverage as Chevron's Revenue Soared 41%; EPS Turned Positive

Upcoming AWS Coverage on Imperial Oil Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 10, 2017 / Active Wall St. announces its post-earnings coverage on Chevron Corp. (NYSE: CVX). The Company reported its first quarter fiscal 2017 results on April 27, 2017. The oil major surpassed top- and bottom-line expectations. Register with us now for your free membership at:

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One of Chevron's competitors within the Major Integrated Oil & Gas space, Imperial Oil Ltd (NYSE: IMO), released its Q1 2017 financial and operating results on April 28, 2017. AWS will be initiating a research report on Imperial Oil in the coming days.

Today, AWS is promoting its earnings coverage on CVX; touching on IMO. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, Chevron's revenue rose to $33.4 billion compared to revenue of $23.6 billion in Q1 2016. The Company's revenue numbers came in above analysts' consensus of $32.01 billion.

For Q1 2017, Chevron reported earnings of $2.7 billion, or $1.41 per share diluted, compared with a loss of $725 million, or $0.39 per diluted share, in Q1 2016. The reported quarter earnings included gain of approximately $600 million from the sale of an upstream asset. Foreign currency effects decreased earnings in Q1 2017 by $241 million compared with a decrease of $319 million in the year ago period. The Company's earnings results topped Wall Street's expectations of $0.85 per share.

Segment Results

For Q1 2017, Chevron's upstream worldwide net oil-equivalent production was 2.68 million barrels per day compared with 2.67 million barrels per day in Q1 2016. Production increases from major capital projects and base business were largely offset by production entitlement effects in several locations, normal field declines and the impact of asset sales. US upstream operations earned $80 million in the reported quarter compared with a loss of $850 million in the year ago same period, driven by higher crude oil realizations and lower depreciation and operating expenses.

Chevron's average sales price per barrel of crude oil and natural gas liquids was $45 in Q1 2017, up from $26 a year ago. The average sales price of natural gas was $2.39 per thousand cubic feet compared with $1.32 in the year earlier comparable quarter.

During Q1 2017, Chevron's net oil-equivalent production of 672,000 barrels per day in declined 29,000 barrels per day, or 4% on a y-o-y basis. The net liquids component of oil-equivalent production increased 3% to 504,000 barrels per day in the reported quarter, while net natural gas production fell 21% to 1.01 billion cubic feet per day.

For Q1 2017, Chevron's International upstream operations generated earnings of $1.4 billion compared with a loss of $609 million in Q1 2016. The increase was attributed to higher crude oil realizations, a gain of approximately $600 million from the sale of the Indonesia geothermal business, higher natural gas sale volumes and lower operating expenses, partially offset by higher depreciation expense and higher tax items. The segment's average sales price for crude oil and natural gas liquids was $49 per barrel, up from $29 in the year ago same period. The average price of natural gas was $4.36 per thousand cubic feet compared with $3.91 in Q1 2016.

For the International upstream segment, net oil-equivalent production of 2.00 million barrels per day in Q1 2017 increased 39,000 barrels per day, or 2% on a y-o-y basis. The net liquids component of oil-equivalent production decreased 7% to 1.20 million barrels per day in the reported quarter, while net natural gas production increased 19% to 4.80 billion cubic feet per day.

During Q1 2017, Chevron's U.S. downstream operations reported earnings of $469 million compared with earnings of $247 million in Q1 2016. Refinery crude oil input in the reported quarter decreased 5% to 912,000 barrels per day from the year-ago same period. Refined product sales of 1.15 million barrels per day decreased 5% on a y-o-y basis. Branded gasoline sales of 511,000 barrels per day were essentially unchanged from the 2016 period.

Chevron's International downstream operations earned $457 million in Q1 2017 compared with $488 million in Q1 2016. The decrease was primarily due to lower margins on refined product sales. Foreign currency effects decreased earnings by $46 million in Q1 2017 compared with a decrease of $48 million in Q1 2016. The segment's refinery crude oil input of 753,000 barrels per day in Q1 2017 decreased 42,000 barrels per day from the year-ago same period, mainly due to planned turnaround activity at the Company's refinery in Cape Town, South Africa. During Q1 2017, refined product sales of 1.45 million barrels per day grew 1% on a y-o-y basis due to higher gas oil and fuel oil sales, partially offset by lower gasoline sales.

Financial Position

During Q1 2017, Chevron's cash flow from operations was $3.9 billion compared with $1.1 billion in Q1 2016. Excluding working capital effects, cash flow from operations in the reported quarter was $4.8 billion compared with $2.1 billion in the corresponding year ago same period.

Chevron's capital and exploratory expenditures in Q1 2017 were $4.4 billion compared with $6.5 billion in Q1 2016. The amounts consisted $939 million in the reported quarter and $791 million in the corresponding year ago comparable period for Chevron's share of expenditures by affiliates, which did not require cash outlays by the Company. Expenditures for upstream represented 90% of the Companywide total in the reported quarter.

Stock Performance

At the close of trading session on Tuesday, May 09, 2017, Chevron's share price finished the trading session at $105.08, slipping 1.50%. A total volume of 5.02 million shares exchanged hands. The stock has advanced 2.26% and 9.04% in the last six months and past twelve months, respectively. The stock currently has a market cap of $202.71 billion and has a dividend yield of 4.11%. Additionally, the Company's share has a P/E ratio of 68.59.

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