Chevron Earnings: Exceeding Expectations and Boosting Dividend 8%

Chevron's fourth-quarter adjusted earnings of $6.5 billion fell from $7.9 billion a year before but modestly exceeded market expectations. Adjusted earnings exclude a previously announced $1.8 billion upstream impairment charge, mainly in California, and $1.9 billion in decommissioning obligations from previously sold assets in the Gulf of Mexico. The earnings decline was largely attributable to lower oil and natural gas prices that offset an increase in production volumes to 3,392 thousand barrels of oil equivalent per day from 3,011 mboe/d the year before due largely to the acquisition of PDC Energy and continued growth in the Permian. Both also lead to a record annual production of 3,120 mboed. Management expects volume growth of 4%-7% in 2024 thanks to a full year of PDC volumes and 10% Permian growth that should offset divestments. The continued volume growth demonstrates Chevron’s hydrocarbon-focused strategy.