Chevron (CVX) Q2 2024 earnings summary

Executive summary

• Q2 2024 earnings were $4.4 billion ($2.43/share), down from $6.0 billion in Q2 2023, with adjusted earnings at $4.7 billion ($2.55/share); global production rose 11% year-over-year, driven by PDC Energy acquisition and record Permian output.

• Returned $6 billion to shareholders in Q2 2024, including $3 billion in dividends and $3 billion in share repurchases; over $50 billion returned in the past two years.

• Hess merger received shareholder approval; regulatory and arbitration reviews ongoing, with completion timing uncertain.

• Advanced major projects in the Permian, Gulf of Mexico, and Kazakhstan; over 100 GHG abatement projects underway and Geismar renewable diesel plant expansion commissioned.

• Announced headquarters relocation to Houston and several executive retirements.

Financial highlights

• Q2 2024 reported earnings were $4.4 billion ($2.43/share); adjusted earnings were $4.7 billion ($2.55/share); revenue was $49.6 billion, up from $47.2 billion in Q2 2023.

• Cash flow from operations excluding working capital was $8.7 billion; free cash flow was $2.3 billion.

• Capex increased to $4.0 billion, mainly due to higher upstream investments and PDC asset spend.

• Net debt ratio stood at 10.7% as of June 30, 2024.

• ROCE was 11.1% for Q2 2024, down from 14.1% in Q2 2023.

Outlook and guidance

• Full-year production growth expected at about 15%, with Q4 production averaging around 940,000 barrels/day.

• Q3 2024 to see heavier maintenance, reducing production by ~130 MBOED and impacting downstream earnings by $(150)–$(250) million; a one-time $600 million payment related to discontinued operations is anticipated.

• Share repurchases in Q3 2024 expected at $4.0–$4.75 billion; full-year capex guidance is $15.5–$16.5 billion.

• Asset sales in H2 expected to align with full-year guidance; affiliate dividends forecasted at ~$1 billion.