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2020-02-03 11:20:00

CHEVRON NET LOSS $6.6 BLN

CHEVRON NET LOSS $6.6 BLN

CHEVRON - Jan. 31, 2020 - Chevron Announces Fourth Quarter 2019 Results

Delivers on core financial priorities, demonstrates commitment to capital discipline and superior shareholder returns

  • Fourth quarter loss $6.6 billion; earnings excluding special items and FX $2.8 billion
  • Annual earnings $2.9 billion; earnings excluding special items and FX $11.9 billion
  • Cash flow from operations of $27.3 billion in 2019
  • Record annual net oil-equivalent production of 3.06 million barrels per day
  • Dividends and share repurchases of $13.0 billion in 2019

Chevron Corporation (NYSE: CVX)  reported a loss of $6.6 billion ($(3.51) per share - diluted) for fourth quarter 2019, compared with earnings of $3.7 billion ($1.95 per share - diluted) in the fourth quarter 2018. Included in the current quarter were previously announced upstream impairments and write-offs totaling $10.4 billion associated with Appalachia shale, Kitimat LNG, Big Foot and other projects. The company also recognized a $1.2 billion gain on the sale of the U.K. Central North Sea assets in the fourth quarter. Foreign currency effects decreased earnings in the fourth quarter 2019 by $256 million.

Full-year 2019 earnings were $2.9 billion ($1.54 per share - diluted), compared with $14.8 billion ($7.74 per share - diluted) in 2018. Included in 2019 were net charges for special items of $8.7 billion, compared to net charges of $1.2 billion for special items in 2018. Foreign currency effects decreased earnings in 2019 by $304 million.

Earnings excluding special items and FX reflect net income (loss) excluding special items and foreign currency effects. For a reconciliation of earnings excluding special items and FX, see Attachment 5.

Sales and other operating revenues in fourth quarter 2019 were $35 billion, compared to $40 billion in the year-ago period.

Earnings Summary

 

Three Months
Ended Dec. 31

Year Ended
Dec. 31

Millions of dollars

2019

2018

2019

2018

Earnings by business segment

 

 

 

 

Upstream

$(6,734)

$3,290

$2,576

$13,316

Downstream

672

859

2,481

3,798

All Other

(548)

(419)

(2,133)

(2,290)

Total (1)(2)

$(6,610)

$3,730

$2,924

$14,824

(1) Includes foreign currency effects

$(256)

$268

$(304)

$611

(2) Net income attributable to Chevron Corporation (See Attachment 1)

"Cash flow from operations remained strong in 2019, allowing the company to deliver on all our financial priorities," said Michael K. Wirth, Chevron's chairman of the board and chief executive officer. "We paid $9 billion in dividends, repurchased $4 billion of shares, funded our capital program and successfully captured several inorganic investment opportunities, all while reducing debt by more than $7 billion. Earlier this week, we announced a quarterly dividend increase of $0.10 per share, reinforcing our commitment to growing shareholder returns."

"Organic capital spending held flat at $20 billion in 2019, further demonstrating our commitment to capital discipline. Within this program, we continued the ramp-up of the Permian Basin in Texas and New Mexico and progressed our Future Growth Project at the company's 50 percent-owned affiliate, Tengizchevroil, in Kazakhstan. For the first time in the company's history, annual production exceeded 3 million barrels per day of oil equivalent," Wirth added.

The company added approximately 494 million barrels of net oil-equivalent proved reserves in 2019. These additions, which are subject to final reviews, are net of reductions associated with the company's decisions to reduce funding for various gas-related opportunities and asset sales. The largest additions were from the LNG Projects in Australia and deepwater fields in the Gulf of Mexico. The company will provide additional details relating to 2019 reserve additions in its Annual Report on Form 10-K scheduled for filing with the SEC on February 21, 2020.

Significant downstream developments in 2019 included the acquisition of the Pasadena refinery in Texas, and the signing of a conditional agreement to acquire a network of terminals and service stations in Australia. Additionally, Chevron Phillips Chemical Company LLC, the company's 50 percent-owned affiliate, announced plans to jointly develop petrochemical projects in the U.S. Gulf Coast and Qatar.

"In 2019, in addition to flaring and methane emission reduction targets, the company also established new performance goals to reduce net greenhouse gas emission intensity from upstream oil and natural gas production. We entered agreements to increase renewable energy in support of our business and invested in emerging low carbon technologies through our Future Energy Fund and other partnerships," Wirth stated.

At year-end, balances of cash, cash equivalents, time deposits and marketable securities totaled $5.7 billion, a decrease of $4.6 billion from the end of 2018. Total debt at December 31, 2019 stood at $27.0 billion, a decrease of $7.5 billion from a year earlier.

CHEVRON CORPORATION - FINANCIAL REVIEW

Attachment 1

(Millions of Dollars, Except Per-Share Amounts)

 

(unaudited)

 
   

CONSOLIDATED STATEMENT OF INCOME

 

Three Months
Ended December 31

Year Ended
December 31

REVENUES AND OTHER INCOME

2019

2018

2019

2018

 

 

 

 

 

Sales and other operating revenues

34,574

40,338

139,865

158,902

Income from equity affiliates

538

1,642

3,968

6,327

Other income

1,238

372

2,683

1,110

Total Revenues and Other Income

36,350

42,352

146,516

166,339

COSTS AND OTHER DEDUCTIONS

 

 

 

 

Purchased crude oil and products

19,693

23,920

80,113

94,578

Operating expenses *

7,214

6,941

25,945

24,942

Exploration expenses

272

250

770

1,210

Depreciation, depletion and amortization

16,429

5,252

29,218

19,419

Taxes other than on income

969

901

4,136

4,867

Interest and debt expense

178

190

798

748

Total Costs and Other Deductions

44,755

37,454

140,980

145,764

Income (Loss) Before Income Tax Expense

(8,405

4,898

5,536

20,575

Income tax expense (benefit)

(1,738

1,175

2,691

5,715

Net Income (Loss)

(6,667

3,723

2,845

14,860

Less: Net income (loss) attributable to noncontrolling interests

(57

(7

(79

36

NET INCOME (LOSS) ATTRIBUTABLE TO

CHEVRON CORPORATION

(6,610

3,730

2,924

14,824

 

* Includes operating expense, selling, general and administrative expense, and other components of net periodic benefit costs

 

Full PDF version

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