Chevron Achieves Record-Breaking Quarter, Delivers Strong Financial and Operational Results
Chevron Corporation recently announced its third quarter 2024 earnings results, showcasing impressive financial and operational achievements. The company's Chairman and CEO, Mike Wirth, highlighted the strong performance in the Permian region, where they executed major turnarounds at TCO and Gorgon ahead of schedule.
Worldwide production increased by 7% from the prior year, setting a third quarter record. Chevron also started up the high-pressure anchor project, which began water injection to boost production at the Jack St. Malo and Tahiti fields. These projects, combined with additional start-ups through 2025, are expected to grow Gulf of Mexico production to 300,000 barrels per day by 2026.
In addition to these achievements, Chevron expanded its CO2 storage portfolio, adding over 2 million acres offshore Western Australia. The company's merger with Hess received final approval from the FTC in September, marking a significant milestone for the company. Furthermore, Chevron recently announced several asset sales as part of its ongoing portfolio optimization efforts, which are expected to contribute before-tax proceeds of approximately $8 billion.
One year has passed since the PDC Energy acquisition, and Chevron has successfully combined the two companies, taking best practices from both and applying them across their shale and tight portfolio. They have exceeded their guidance of $500 million in combined capital and cost synergies by more than 30% and delivered more than $1 billion in incremental free cash flow since acquiring PDC.
The company's operations in Colorado are among the lowest carbon intensity assets in the industry, benefiting from tankless production facilities that lower greenhouse gas emissions by 90% compared to older designs. Chevron also utilizes grid-powered rigs that reduce more than 60% of their on-site greenhouse gas emissions from drilling.
Chevron reported third quarter earnings of $4.5 billion or $2.48 per share, with adjusted earnings of $4.5 billion or $2.51 per share. Organic CapEx was $4 billion for the quarter, in line with their budget. The company's balance sheet remains one of the strongest in the industry, ending the quarter with a net debt ratio under 12%. Cash flow in the third quarter was the highest for the year despite lower oil prices.
