Integrated energy companies
In this series, we’re ranking four integrated energy companies based on their estimated YoY (year-over-year) earnings growth. In the previous part, we saw that BP (BP) is in the top spot and could see a 294% YoY rise in earnings. In the second spot is Chevron (CVX).
Chevron’s Q2 2018 estimates
In Q2 2018, according to Wall Street analysts’ estimates, CVX is expected to post EPS of $2.10. That’s 130% higher than its adjusted EPS in Q2 2017 and 10% higher than Q1 2018. CVX’s revenues are expected to be $45.6 billion in Q2 2018, which is 32% higher than Q2 2017.
Chevron’s upstream and downstream earnings could grow YoY in Q2 2018. Crude oil prices rose YoY in the second quarter. WTI prices surged from $48 per barrel in Q2 2017 to $68 per barrel in Q2 2018. That could improve CVX’s second-quarter realizations, which could lead to higher upstream earnings for the company.
Downstream earnings are also likely to be supported by wider refining cracks in Q2 2018 compared to Q2 2017. For instance, the US Gulf Coast WTI 3-2-1 crack, the broader market crack indicator, expanded 20% over Q2 2017 to $18 per barrel in Q2 2018.