• Natural Gas News

    Chevron's earnings quadruple in the first quarter


Chevron marked record production from its unconventional Permian Basin assets.

by: Callum Cyrus

Posted in:

NGW News Alert, Natural Gas & LNG News, World, Americas, Corporate, Exploration & Production, News By Country, United States

Chevron's earnings quadruple in the first quarter

Chevron's first quarter earnings climbed almost four fold to $6.5bn on an adjusted basis as yields from its unconventional Permian Basin assets reached new highs.

Net output rose by an annual 109,000 barrels of oil equivalent/day to 1.18mn boe/d, mainly because the Permian assets suffered disruption from a heavy winter storm, Storm Uri, this time last year. Production from unconventional Permian assets grew to a record 692,000 boe/d during the first quarter, and Chevron has lifted its 2022 guidance for the fields by 15% yr/yr, to 700,000 - 750,000 boe/d. 

Unlike its US peer ExxonMobil and European counterparts, Chevron did not suffer write-downs in the wake of the Ukraine war. Chevron's Russian presence is marginal - its main interest is a stake in the Caspian crude pipeline from Kazakhstan, which terminates at a terminal on Russia's Black Sea shoreline.

Sales volumes at Chevron grew at a time of better price points for fossil fuels, meaning upstream earnings rose considerably. Earnings more than trebled from $941mn to $3.2bn yr/yr, while average realised gas prices came in at $4.10/1,000 ft3, compared to $2.15/1,000ft3 this time last year.

Capital and exploratory spending rose marginally to $2.8bn, from $2.5bn last year. Chevron's debt ratio and net debt ratio fell to 16.7% and 10.8%, from 18.4% and 15.6% respectively. Company chairman and CEO Mike Wirth said US oil and gas output rose 10% year/year, underscoring its commitment to boosting domestic energy flows.

Chevron also made progress toward its energy transition goals. It struck partnerships and acquisition agreements to strengthen multiple decarbonisation platforms, including renewable energy, hydrogen refuel stations, carbon capture and forest planting. "Consistent with our plans, we are investing to grow both traditional and new energy business lines," Wirth said.