Oil and gas firm Chevron beats Q4 adjusted EPS estimates, dividend up 4%

Overview

• Energy giant's Q4 adjusted EPS beat analyst expectations

• Chevron's Q4 cash flow from operations rose to $10.8 bln

• Company announced 4% increase in quarterly dividend

Outlook

• Chevron plans to increase annual dividend payout per share for the 39th consecutive year

• Company aims to reduce structural costs by $3-4 bln by end of 2026

• Chevron continues to engage with U.S. and Venezuelan governments for shared energy goals

Result Drivers

• RECORD PRODUCTION - Chevron achieved record production levels, driven by the integration of Hess and ramp-up of major projects in the Gulf of America and Permian Basin

• COST REDUCTIONS - Chevron achieved $1.5 bln in structural cost reductions, aiding financial performance

• NEW ENERGY VENTURES - Chevron advanced new energy opportunities in power, lithium, and hydrogen

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the integrated oil & gas peer group is "buy"

• Wall Street's median 12-month price target for Chevron Corp is $175.00, about 2.2% above its January 29 closing price of $171.19

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBwGLpv9a

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