Chevron Corp. (CVX) saw a 2.0% dip in premarket trading on Friday following the release of their full second-quarter results. The company confirmed a profit beat and reported revenue that dropped by nearly 30%, but still surpassed expectations.
Profit and Revenue Performance
In the year-ago period, Chevron’s net income fell by 48% to $6.01 billion, or $3.20 per share, compared to $11.62 billion, or $5.95 per share. This decline was attributed to lower extraction realizations and reduced margins on refined product sales. Excluding nonrecurring items, adjusted earnings per share were revealed to be $3.08, beating the FactSet consensus of $2.91.
Total revenue also experienced a decrease of 29% to $48.90 billion, surpassing the FactSet consensus of $46.73 billion.
Record Breaking Production
Despite the challenges faced, Chevron reported a 4% growth in net production, reaching a new quarterly record of 1.22 million barrels of oil equivalent per day. This achievement was primarily driven by the company’s strength in the Permian Basin.
Expansion Plans in the U.S.
Chevron confirmed its intentions to increase investments in the United States, evident in their recent announcement of a $6.3 billion stock deal to acquire PDC Energy Inc. (PDCE).
Year to date, Chevron’s stock has declined by 11.1%, while the Dow Jones Industrial Average has seen a growth of 6.4%.