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Oil & Gas

Chevron Q3 profit and revenue exceed estimates driven by record US production

Chevron Corporation (NYSE:CVX, ETR:CHV) shares moved higher after the oil giant beat third quarter profit and revenue estimates, driven by record US and Permian Basin production.

Adjusted profit was $4.5 billion or $2.51 per share, down from $5.7 billion or $3.05 per share in the year-ago quarter. However, this topped estimates of $2.43.

The year-over-year decrease was attributed to lower margins on refined product sales, lower realizations and the absence of favorable tax items present in the previous year.

Revenue of $50.67 billion exceeded the Street forecast of $49.04 billion.

Worldwide net oil-equivalent production was up 7% from last year as both US and Permian Basin production set quarterly records, and following the acquisition of PDC Energy, Chevron said in a statement.

During Q3, Chevron also returned a record $7.7 billion in cash to shareholders, including share repurchases of $4.7 billion and dividends of $2.9 billion.

“We delivered strong financial and operational results, started up key projects in the US Gulf of Mexico and returned record cash to shareholders this quarter,” Chevron CEO Mike Wirth said in a statement.

Shares of Chevron traded up 3.3% at about $153 post-earnings.

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