Chevron Corporation (NYSE: CVX) today reported earnings of $4.3 billion ($2.27 per share – diluted) for second quarter 2019, compared with $3.4 billion ($1.78 per share – diluted) in the second quarter of 2018.
Included in the current quarter were earnings of $740 million associated with the Anadarko merger termination fee and a non-cash tax benefit of $180 million related to a reduction in the Alberta, Canada corporate income tax rate.
Foreign currency effects increased earnings in the 2019 second quarter by $15 million.
Sales and other operating revenues in second quarter 2019 were $36 billion, compared to $40 billion in the year-ago period.
Ended June 30
Ended June 30
|Millions of dollars||2019||2018||2019||2018|
|Earnings by business segment|
|(1) Includes foreign currency effects||$15||$265||$(122)||$394|
- Upstream volumes up 9 percent from prior year; includes Permian unconventional production of 421,000 barrels per day
- Second quarter cash flow from operations of $8.8 billion
- Share repurchases of $1.0 billion in second quarter
“Second quarter earnings and cash flow benefited from record quarterly production volumes and the receipt of the Anadarko merger termination fee, partially offset by the impact of lower oil and gas prices,” said Michael Wirth, Chevron’s chairman of the board and chief executive officer. “Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”
“Our strong financial and operational results reflect consistent execution, allowing us to pay our dividend, fund our attractive capital program, further strengthen our balance sheet and return surplus cash to our shareholders. After suspending our share repurchases while in merger discussions with Anadarko, we resumed buybacks in May and expect to be at our planned repurchase rate of $5 billion per year in the third quarter,” Wirth added.
“We continue to high-grade our portfolio and made progress on our three-year target of $5-10 billion of asset sale proceeds. During the quarter, we executed a sales agreement for our U.K. Central North Sea upstream assets, which we expect to close later this year. We also completed the acquisition of the Pasadena refinery in Texas, which will enable us to supply more of our retail market with Chevron-produced products and process more domestic light crude oil,” Wirth said.
Additionally, Chevron Phillips Chemical Company LLC, the company’s 50 percent-owned affiliate, recently announced plans to jointly develop petrochemical projects in the U.S. Gulf Coast and Qatar with start-ups expected in 2024 and 2025, respectively.
The company also recently entered into agreements to invest in renewable natural gas plants in California and to purchase renewable power in Texas for its Permian Basin operations.