{"id":544495,"date":"2023-01-27T20:57:00","date_gmt":"2023-01-27T17:57:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/chevrons-record-profit-was-a-miss-heres-why\/"},"modified":"2023-01-27T20:57:00","modified_gmt":"2023-01-27T17:57:00","slug":"chevrons-record-profit-was-a-miss-heres-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/chevrons-record-profit-was-a-miss-heres-why\/","title":{"rendered":"#: Chevron\u2019s record profit was a miss. Here\u2019s why"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a38d4fa88fe9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a38d4fa88fe9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/chevrons-record-profit-was-a-miss-heres-why\/#%E2%80%9C_Chevrons_record_profit_was_a_miss_Heres_why%E2%80%9D\" >&#8220;: Chevron\u2019s record profit was a miss. Here\u2019s why&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/chevrons-record-profit-was-a-miss-heres-why\/#Its_75_billion_buyback_is_meant_to_ride_the_commodity_cycle_Chevron_says\" >Its $75 billion buyback is meant to ride the commodity cycle, Chevron says<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/chevrons-record-profit-was-a-miss-heres-why\/#Claudia_Assis\" >Claudia Assis<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_Chevrons_record_profit_was_a_miss_Heres_why%E2%80%9D\"><\/span>&#8220;: Chevron\u2019s record profit was a miss. Here\u2019s why&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Its_75_billion_buyback_is_meant_to_ride_the_commodity_cycle_Chevron_says\"><\/span>\n  Its $75 billion buyback is meant to ride the commodity cycle, Chevron says<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001608541\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001608541\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Chevron Corp. \u2018s record-busting earnings came in slightly under Wall Street expectations on Friday, sending the stock more than 4% lower and making it a top equity-market loser. <\/p>\n<p> Chevron<br \/>\n        CVX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205871374\/composite\" class=\"negative\">-4.10%<\/bg-quote><br \/>\n       earlier Friday reported a mixed fourth quarter, beating the analyst consensus on revenue, and the stock went on to lead losses among S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.42%<\/bg-quote><br \/>\n       energy companies. It was the second worst performer among the 30 components of the Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.21%<\/bg-quote><span>.<\/span><\/p>\n<div class=\"paywall\">\n       The oil giant\u2019s fourth-quarter net income was the highest since the second quarter of 2022. Its profit of $35.5 billion for 2022 was a record, the company said.  <\/p>\n<p>Chevron\u2019s miss was mostly tied to lower refining prices, lower realized prices for oil liquids and higher corporate expenses. <\/p>\n<p>In addition, all four reporting segments \u2014 domestic and international upstream, exploration and production, domestic and international downstream, and making and selling derived products \u2014 \u201cshowed a downtick in profit from the record levels achieved in the second and third quarters of 2022,\u201d said Peter McNally, global head of sector analysts at Third Bridge.<\/p>\n<p>Chevron\u2019s biggest concern, however, might be the attention its $75 billion share buyback, announced earlier this week alongside an increase in its dividend, is attracting, McNally said. <\/p>\n<p>The \u201cmassive\u201d buyback \u201cgrabbed attention all the way across the country in Washington, D.C.,\u201d the analyst said. <\/p>\n<p>The first question during Chevron\u2019s call with analysts after its quarterly results were reported was about the buyback and the \u201cdecision-making process for getting to that $75 billion.\u201d <\/p>\n<p>Chevron Chief Executive Mike Wirth said the decision was reached in the context of the cash-generating potential of Chevron\u2019s portfolio, the market outlook, the strength of its balance sheet, and the fact that it doesn\u2019t want to be authorizing a buyback program every year. <\/p>\n<p>Chevron has chosen to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach share repurchasing in a \u201csteady, consistent way,\u201d and the buyback program is sized to be maintained through the commodity cycle at pace and in an \u201cintentional\u201d way, the executive said. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Citi analyst Alastair Syme questioned \u201chow much is left\u201d in the Chevron trade.<\/p>\n<p>Investors \u201care being asked to pay an estimated 1.7x multiple versus its closest U.S. peer,\u201d and more than a 2-times valuation as compared with European integrated oil companies, Syme said. <\/p>\n<p>\u201cWe understand all the arguments about quality (assets, balance sheet, management), but all this feels reasonably well priced, in our view,\u201d the analyst said, keeping the equivalent of a hold rating on the stock. <\/p>\n<p>Piper Sandler analyst Ryan Todd maintained the equivalent of a buy rating on Chevron\u2019s stock, saying that \u201cinvestors may nitpick at the margins a bit, overall (record) earnings power remains impressive and sustainable.\u201d<\/p>\n<p>As is the commitment to sustained shareholder returns, as highlighted by the share-repurchase program and \u201c6% dividend growth,\u201d Todd said.<\/p>\n<p>Rival Exxon Mobil Corp.<br \/>\n        XOM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204455864\/composite\" class=\"negative\">-1.27%<\/bg-quote><br \/>\n       is slated to report fourth-quarter earnings on Tuesday before the opening bell. Analysts polled by FactSet on average expect Exxon to report adjusted earnings of $3.29 a share on revenue of $97.3 billion. <\/p>\n<p>Shares of Chevron have gained 37% over the past 12 months, contrasting with a decline of nearly 8% for the benchmark S&amp;P 500 index. The Dow industrials, among which Chevron was weakest Friday performer after Intel<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"negative\">-7.13%<\/bg-quote><span>,<\/span><br \/>\n       have fallen 1.9% in the past year.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Claudia Assis\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/claudia-assis\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/ClaudiaAssisMW\",\"text\":\"@ClaudiaAssisMW\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:cassis@marketwatch.com\",\"text\":\"cassis@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Claudia_Assis\"><\/span>Claudia Assis<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"40_MW\" author-name=\"Claudia Assis\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fchevrons-record-profit-was-a-miss-heres-why-11674842222%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Here\u2019s why&#8221; Its $75 billion buyback is meant to ride the commodity cycle, Chevron says Chevron Corp. \u2018s record-busting earnings came in slightly under Wall Street expectations on Friday, sending the stock more than 4% lower and making it a top equity-market loser. Chevron CVX, -4.10% earlier Friday&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544496,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-573903\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-544495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=544495"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544495\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544496"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}