Chevron stock jumps after big profit and revenue beats, as crude and natural gas sales prices soared

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Shares of Chevron Corp. CVX, +1.21% surged 2.0% toward a 22-month high in premarket trading Friday, after the oil and gas giant reported third-quarter profit and revenue that rose well above expectations, as crude oil prices nearly doubled and natural gas prices nearly quadrupled. The company swung to net income of $6.11 billion, or $3.19 a share, from a loss of $207 million, or 12 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $2.96 from 18 cents, beating the FactSet consensus of $2.20. Total revenue jumped 82.9% to $44.71 billion, above the FactSet consensus of $41.22 billion. Worldwide net oil-equivalent production grew 7% to 3.03 million barrels per day. For Chevron’s U.S. upstream operations, the average sales price per barrel of crude oil and natural gas liquids climbed to $58 from $31 a year ago, while the average sales price of natural gas soared to $3.25 per thousand cubic feet from 89 cents. “Third quarter earnings were the highest since first quarter 2013 largely due to improved market conditions, strong operational performance and a lower cost structure,” said Chief Executive Mike Wirth. The stock has run up 34.0% year to date through Thursday, while the SPDR Energy Select Sector ETF XLE, -0.66% has rallied 52.6% and the Dow Jones Industrial Average DJIA, +0.25% has advanced 16.7%.

This article was originally published by Marketwatch.com. Read the original article here.

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