Chevron’s Q1 Production Increased with Rising Oil Prices, Yet Profits Declined: An Analysis of Oil Stock Performance

Chevron’s Q1 Earnings Report

Chevron (NYSE: CVX) reported adjusted earnings of nearly $2.8 billion, or $1.41 per share, for Q1 2023, a decline from $3 billion in Q4 2022 and $3.8 billion in the same quarter last year. The company’s global production increased by 15% to approximately 3.9 million barrels of oil equivalent per day (BOE/d), boosted by acquisitions and growth in the Gulf of Mexico and Permian Basin. Despite the rise in average Brent oil prices from $76 to $81 per barrel, Chevron faced headwinds including $2.9 billion in unfavorable timing effects and production setbacks in the Middle East.

Throughout the quarter, Chevron’s U.S. operations produced over 2 million BOE/d for the third consecutive quarter. The company also achieved record throughput levels at its U.S. refining assets, averaging more than 1 million barrels per day. Looking ahead, Chevron expects these operational challenges to diminish, allowing it to leverage its growth strategy effectively, including expansions in Venezuela, Texas, and Equatorial Guinea, alongside new oil discoveries in the Gulf.