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Chevron Posted Strong Q4 Numbers, Upstream Earnings Rose

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Chevron’s Upstream earnings

Chevron (CVX) posted its fourth-quarter earnings on February 1. The company beat analysts’ earnings estimate. To learn more, read Chevron’s Q4 Earnings Rise Across Segments, Beat Estimates.

Chevron’s earnings rose YoY (year-over-year) in the fourth quarter. The Upstream segment’s adjusted earnings rose from $1.9 billion in the fourth quarter of 2017 to $3.3 billion in the fourth quarter. The Upstream earnings rose due to higher hydrocarbon production and better oil prices.

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In the United States, Chevron’s average crude oil realizations rose from $54 per barrel in the fourth quarter of 2017 to $62 per barrel in the fourth quarter. Chevron’s total Upstream production grew 12% YoY to the high of 3.08 million barrels of oil equivalent per day in the fourth quarter. The production increased due to a rise in the output in the Wheatstone and Permian regions. The production is expected to increase in 2019.

Chevron’s peers

ExxonMobil’s (XOM) Upstream earnings increased from $2.5 billion in the fourth quarter of 2017 to $3.7 billion in the fourth quarter. Royal Dutch Shell’s (RDS.A) Upstream segment’s adjusted earnings rose from $1.7 billion in the fourth quarter of 2017 to $1.9 billion in the fourth quarter.

Downstream earnings

Chevron’s Downstream segment’s earnings rose 362% YoY to $0.8 billion in the fourth quarter due to better margins domestically and internationally. However, Chevron’s total throughput fell 0.8% YoY in the fourth quarter due to a decline in the throughput internationally. The decline was partially offset by a rise in the throughput domestically. In the United States, the throughputs rose 10% YoY due to the absence of a turnaround at the El Segundo refinery. Also, Hurricane Nate didn’t impact the Pascagoula refinery. International throughputs fell due to the sale of the Cape Town refinery.

The adjusted earnings rose from $1.4 billion in the fourth quarter of 2017 to $3.7 billion in the fourth quarter. Higher Upstream and Downstream earnings supported the total earnings.

Next, we’ll discuss Chevron’s stock performance after its fourth-quarter earnings.

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