Chevron shares rise after profits and revenues beat expectations
Chevron on Friday reported quarterly profits and revenues that beat Wall Street's expectations as the company cut costs and as oil and gas prices and refining margins improved.
Shares of Chevron were up more than 1 percent after the announcement. See the latest market reaction here (NYSE: CVX).
The oil major earned $1.7 billion, or and adjusted 91 cents a share, excluding impairments and gains from asset sales. Analysts had expected Chevron to earn 87 cents a share on $32.09 billion in revenue.
The integrated oil and gas company generated $34.48 billion in revenue in the quarter, up from $29.2 billion in the year-ago period.
"Second quarter results improved substantially from a year ago and year-to-date net cash flow is positive," Chairman and CEO John Watson said in a statement. "We're delivering higher production with lower capital and operating expenditures."
Chevron's cash flow generated by its operations — a key metric in the oil and gas industry — was $8.9 billion, more than double last year's $3.7 billion.
The San Ramon, California-based oil giant pulled back spending from $12 billion in the year-ago period to $8.9 billion in the first half of 2017.
Chevron reported a loss in its U.S. oil and gas exploration and production business, while earnings rose internationally. Both the American and foreign operations benefited from higher oil prices.
Higher profit margins boosted Chevron's downstream business, which includes refining crude oil into fuels.
Chevron announced a $1.08 dividend on Wednesday, unchanged from the previous quarter.
The company reported earnings of 77 cents including the $430 million in impairments and other charges and a $160 million benefit from selling assets.
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