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Chevron’s Q1 Earnings Fell, Beat the Estimate

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Chevron’s estimated and actual performance

Chevron (CVX) posted its first-quarter results on April 26. In the first quarter, Chevron’s revenues at $35.2 billion missed analysts’ estimate. In the first quarter, Chevron’s adjusted EPS was $1.39, which beat analysts’ estimated EPS of $1.30 by ~7%. However, Chevron’s adjusted EPS was ~27% lower than its adjusted EPS in the first quarter of 2018.

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Chevron’s earnings review

In the first quarter, Chevron’s adjusted earnings fell from $3.6 billion in the first quarter of 2018 to $2.8 billion in the first quarter. The earnings fell year-over-year due to lower upstream and downstream earnings.

Chevron’s adjusted upstream earnings have fallen 2% since the first quarter of 2018 to $3.3 billion in the first quarter. The upstream earnings fell due to lower realizations. The fall was partially offset by higher volumes. Chevron’s production grew due to increased volumes at Wheatstone and Permian Basin. Chevron’s production rose 7% YoY to 3.04 million barrels of oil equivalent per day in the first quarter.

Chevron’s adjusted downstream earnings fell from $0.7 billion in the first quarter of 2018 to $0.2 billion in the first quarter due to lower downstream and chemicals margins.

Peers’ performance

Royal Dutch Shell (RDS.A) and BP (BP) are expected to post 18% and 15% lower EPS in the first quarter—compared to the first quarter of 2018. Suncor Energy (SU) and Petrobras (PBR) are expected to post 15% YoY and 31% YoY lower EPS in the first quarter.

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