Chevron (CVX) announced its first-quarter earnings results on April 26, 2019. Its stock opened at $118.4, higher than its previous day’s close of $117.9. The rise could be the result of Chevron’s first-quarter earnings surpassing Wall Street analysts’ consensus estimate. The stock saw a high of $118.5 and a low of $115.7 on the day. Eventually, it closed at $117.1, ~0.7% lower than its previous day’s close.
The stock likely fell due to Chevron’s lower earnings in the first quarter. Its profits fell due to its lower Upstream and Downstream earnings driven by lower oil prices and weaker Downstream margins. Chevron’s peers also saw falls in their earnings in the first quarter. ExxonMobil’s (XOM) adjusted earnings fell 50% YoY, whereas Total’s (TOT) adjusted earnings fell 6% YoY.
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Nevertheless, Chevron has a strong, expanding, and diverse Upstream portfolio. In the first quarter, Chevron’s hydrocarbon production rose sharply, and this rise is expected to continue in the coming quarters. The company expects its Upstream volumes to grow in the range of 4%–7% in 2019. Its volumes could soar well above the forecast range on the closure of its acquisition of Anadarko Petroleum.
On Chevron’s first-quarter earnings conference call, Mike Wirth, Chevron’s chair and CEO, said, “With the announced acquisition of Anadarko, our story gets even better. It builds strength on strength.” He added, “We know how to integrate two strong companies to create an even stronger one. We’ve done it well on prior transactions, and we’ll do it again. We remain confident that the transaction agreed by Chevron and Anadarko will be completed.”
Peers, oil, and the market’s performance on April 26
On April 26, the stocks of Chevron’s peers plunged, and crude oil prices fell.
On the day, the price of WTI crude oil fell 2.9%. Petrobras (PBR), PetroChina (PTR), YPF (YPF), and Suncor Energy (SU) fell 0.6%, 0.7%, 4.1%, and 0.5%, respectively, on the day. However, the SPDR S&P 500 ETF (SPY), which resembles the S&P 500 Index, rose 0.5% on the day.