Chevron (CVX) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 net income of $4.5B ($2.48/share), down from $6.5B ($3.48/share) in Q3 2023, with adjusted earnings of $4.5B ($2.51/share); record $7.7B returned to shareholders via $4.7B in buybacks and $2.9B in dividends.

• Worldwide net oil-equivalent production rose 7–10% year-over-year, driven by Permian and DJ Basin growth and the PDC Energy acquisition.

• Achieved first oil at the Anchor project, advanced key Gulf of Mexico projects, and completed major turnarounds at TCO and Gorgon.

• Cleared FTC review for the Hess merger, but completion is subject to ongoing arbitration in Guyana.

• Announced $6.5B sale of Canadian assets, with further divestitures planned to reach $10–15B by 2028 and awarded an Australia CO2 storage assessment permit.

Financial highlights

• Q3 2024 revenue was $48.9B, down from $51.9B in Q3 2023; net income was $4.5B; free cash flow for Q3 was $5.6B; cash flow from operations was $9.7B.

• Return on capital employed (ROCE) was 10.1% for Q3 2024; adjusted ROCE was 10.2%.

• Net debt ratio improved to 11.9% as of September 30, 2024; debt ratio was 14.2%.

• Capital expenditures for Q3 2024 were $4.1B; dividends paid in Q3 were $2.9B.

• Share repurchases in Q3 2024 totaled $4.7B; $21.9B repurchased under current program.

Outlook and guidance

• Portfolio optimization and cost reduction efforts target $2–3B in structural cost reductions by end of 2026.

• Asset sales in Canada, Congo, and Alaska expected to close in Q4 2024; total asset sales targeted at $10–15B by 2028.

• Share repurchases in Q4 2024 expected between $4–$4.75B; asset sale proceeds expected at $8B.

• U.S. Gulf of Mexico production projected to reach 300,000 barrels/day by 2026 with ongoing project start-ups.

• Downstream turnarounds projected to reduce earnings by $350–$400M; affiliate dividends expected at ~$1B.