Chevron Corporation (CVX): history, ownership, mission, how it works & makes money

A Brief History of Chevron Corporation

Chevron Corporation, a leading integrated energy company, has undergone significant transformations and developments over the years, particularly as of 2024. The company's history reflects its efforts to adapt to changing market dynamics, environmental concerns, and technological advancements.

Financial Performance Overview

As of the third quarter of 2024, Chevron reported earnings of $4.5 billion ($2.48 per share - diluted), a decrease from $6.5 billion ($3.48 per share - diluted) in the same period of 2023. The adjusted earnings for the third quarter were $4.5 billion compared to $5.7 billion in the previous year.

Production and Operational Highlights

Chevron's worldwide net oil-equivalent production increased by 7% from the previous year, primarily driven by record production in the Permian Basin and the acquisition of PDC Energy, Inc. The company reported net oil-equivalent production rates of 3,364 MBOED in Q3 2024.

Capital Expenditures and Investments

In Q3 2024, Chevron's capital expenditures (Capex) amounted to $4.1 billion, down from $4.7 billion in the same quarter of 2023. The company is also focusing on optimizing its portfolio, planning to divest $10-15 billion of assets by 2028, with a notable $6.5 billion sale of Canadian assets announced for Q4 2024.

Shareholder Returns

Chevron returned a record $7.7 billion to shareholders in Q3 2024, which included share repurchases of $4.7 billion and dividends of $2.9 billion. The company's board of directors declared a quarterly dividend of $1.63 per share, payable on December 10, 2024.

The financial and operational metrics indicate Chevron's ongoing commitment to maintaining a robust balance sheet while adapting to the evolving energy landscape and shareholder expectations.

A Who Owns Chevron Corporation (CVX)

Major Shareholders

As of 2024, Chevron Corporation (CVX) has a diverse ownership structure. The largest shareholders are typically institutional investors, followed by individual investors and company insiders. The following table outlines the major shareholders of Chevron Corporation:

Stock Performance and Market Capitalization

Chevron Corporation's stock performance reflects its ownership dynamics and market perception. As of the end of Q3 2024, Chevron's market capitalization is approximately $230 billion. The company's stock has shown resilience with a year-to-date increase of 15%.

Institutional Holdings Analysis

Institutional investors hold a significant portion of Chevron's shares, which indicates strong confidence in the company's long-term strategies. The top five institutional shareholders account for over 41% of the total shares outstanding. The following table highlights the breakdown of institutional holdings:

Insider Ownership

Insider ownership in Chevron is relatively low, at approximately 0.9%. This level of insider ownership is typical for large corporations, where institutional investors dominate. The executives and directors collectively hold 50 million shares, reflecting their commitment to the company.

Recent Changes in Ownership

In 2024, Chevron has seen some changes in its shareholder composition, notably due to increased interest from ESG-focused funds. These funds are gradually increasing their positions as Chevron continues to implement sustainability initiatives. The company announced plans to divest $10-15 billion in assets by 2028, which may affect its ownership structure moving forward.

Conclusion on Ownership Dynamics

The ownership of Chevron Corporation is characterized by significant institutional investment, a modest insider presence, and a growing interest from retail investors. The company's strategic initiatives and market performance will likely continue to shape its ownership landscape in the coming years.

Chevron Corporation (CVX) Mission Statement

Certainly, Chevron Corporation's mission statement emphasizes its commitment to providing affordable, reliable, and ever-cleaner energy to enable human progress. As of 2024, Chevron aims to grow its oil and gas business while lowering the carbon intensity of its operations. They focus on developing technologies that enhance their business and the energy industry.

Chevron's mission includes:

• Producing crude oil and natural gas.
• Manufacturing transportation fuels, lubricants, petrochemicals, and additives.
• Developing technologies for renewable fuels, carbon capture and offsets, and hydrogen.

Financial Overview

As of Q3 2024, Chevron reported significant financial metrics that underline its operational performance:

Operational Highlights

Chevron's operational achievements in Q3 2024 include:

• Worldwide net oil-equivalent production increased by 7% compared to the previous year.
• Production in the U.S. and Permian Basin set a quarterly record.
• Key projects in the U.S. Gulf of Mexico, such as Anchor and Jack/St. Malo, commenced production.

Production Metrics

The following table outlines Chevron's production metrics for Q3 2024:

Debt and Equity Position

As of September 30, 2024, Chevron's debt and equity position is as follows:

Dividend Information

Chevron's Board of Directors declared a quarterly dividend of:

• $1.63 per share, payable on December 10, 2024.

Chevron continues to focus on enhancing its portfolio and shareholder returns while maintaining its commitment to sustainable energy practices.

How Chevron Corporation (CVX) Works

Company Overview

Chemical Corporation (CVX) is a leading integrated energy company engaged in various segments of the energy sector, including oil and gas exploration, production, refining, and marketing. Chevron operates in both upstream and downstream sectors, with a significant focus on reducing carbon intensity and enhancing renewable energy initiatives.

Financial Performance

In the third quarter of 2024, Chevron reported total revenues of $50.669 billion, a decrease from $54.080 billion in the same quarter of 2023. The net income for this period was $4.487 billion, down from $6.526 billion year-over-year. Earnings per share (EPS) for the third quarter were $2.48, compared to $3.48 in 2023.

Operational Highlights

Chevron's worldwide net oil-equivalent production increased by 7% year-over-year, driven by record production in the Permian Basin and the acquisition of PDC Energy, Inc. The U.S. upstream production set a new quarterly record, with net oil-equivalent production of 1.605 million barrels of oil equivalent per day (MBOED).

Upstream Production Metrics

Downstream Operations

In the downstream segment, Chevron reported earnings of $595 million in Q3 2024, a significant decrease from $1.683 billion in Q3 2023. The decline was attributed to lower margins on refined product sales.

Downstream Production Metrics

Capital Management

Chevron returned a record $7.7 billion to shareholders during Q3 2024, including share repurchases of $4.7 billion and dividends of $2.9 billion. The company declared a quarterly dividend of $1.63 per share, payable on December 10, 2024.

Debt and Equity Position

As of September 30, 2024, Chevron's total debt was reported at $25.841 billion, with total stockholders' equity of $156.202 billion. The debt ratio stood at 14.2%, while the net debt ratio was 11.9%.

Future Outlook

Chevron is optimizing its portfolio and plans to divest $10-15 billion in assets by 2028. The company also aims for $2-3 billion in structural cost reductions by the end of 2026. Key projects in the U.S. Gulf of Mexico are projected to significantly bolster production levels through 2026.

How Chevron Corporation (CVX) Makes Money

Overview of Revenue Streams

Certainly, Chevron Corporation (CVX) generates revenue primarily through two main segments: upstream and downstream operations. The upstream segment involves exploration and production of crude oil and natural gas, while the downstream segment encompasses refining, marketing, and distribution of oil products.

Upstream Operations

Chevron's upstream operations focus on the exploration and production of oil and gas. In the third quarter of 2024, Chevron reported total upstream earnings of $4.6 billion, a decrease from $5.8 billion in the previous year. The U.S. upstream earnings were $1.9 billion, while international upstream earnings amounted to $2.6 billion.

The company's net oil-equivalent production in 3Q 2024 was approximately 3.36 million barrels of oil equivalent per day (MBOED), reflecting a year-on-year increase of 7%. The production breakdown indicated that liquids production was about 1.16 million barrels per day (MBD) and natural gas production reached approximately 2.69 million cubic feet per day (MMCFD).

Downstream Operations

Chevron's downstream segment includes refining and marketing of petroleum products. In 3Q 2024, downstream earnings totaled $595 million, significantly lower than the $1.68 billion reported in 3Q 2023. U.S. downstream earnings were $146 million, while international downstream earnings were $449 million.

The decline in downstream earnings can be attributed to reduced margins on refined products, despite a slight increase in refined product sales due to higher demand for gasoline and jet fuel.

Financial Performance Metrics

Chevron's financial performance metrics for 3Q 2024 reflect a decrease in overall profitability compared to the previous year. The company reported net income of $4.5 billion, down from $6.5 billion in 3Q 2023. The diluted earnings per share (EPS) were $2.48, a decrease from $3.48 a year prior.

Capital Expenditures and Investments

Chevron's capital expenditures (Capex) for 3Q 2024 totaled $4.1 billion, down from $4.7 billion in 3Q 2023. The company continues to invest in growth projects, particularly in the U.S. Gulf of Mexico, where new production projects are expected to enhance output significantly.

Shareholder Returns

Chevron has been committed to returning capital to shareholders, with a record $7.7 billion returned in 3Q 2024 through share repurchases and dividends. The quarterly dividend was declared at $1.63 per share, payable in December 2024.

Conclusion of Financial Performance

Chevron's financial results for 3Q 2024 show a solid performance in upstream operations, although downstream operations faced challenges due to lower margins. The company continues to prioritize shareholder returns while investing in strategic growth initiatives.

Article updated on 8 Nov 2024

Resources:

• Chevron Corporation (CVX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chevron Corporation (CVX)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Chevron Corporation (CVX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.