Michael Wirth, CEO of Chevron.
Adam Jeffery | CNBC
Chevron reported a second straight quarter of earnings on Friday as improved demand for petroleum products and a surge in oil prices fueled operations. The company has also resumed its share buyback program.
The oil giant earned $ 1.71 per share on an adjusted basis on sales of $ 37.6 billion in the second quarter. Analysts expected the company to make $ 1.59 per share on sales of $ 35.94 billion, according to Refinitiv estimates.
“Our free cash flow was our highest in two years, thanks to solid operational and financial performance and lower capital expenditures,” said Mike Wirth, Chevron’s chairman and CEO, in a statement. “We will resume share buybacks in the third quarter at an expected rate of $ 2-3 billion per year.”
For the same period a year ago, the company lost $ 1.59 per share on an adjusted basis on sales of $ 13.49 billion as the pandemic slowed demand for petroleum products.
The latest results have also increased compared to the previous quarter. In the first quarter of 2021, the company made 90 cents per share on an adjusted basis on revenue of $ 32.03 billion.
Chevron said it continues to be disciplined on its capital spending, which has declined 32% year over year so far this year. During the depths of the pandemic in 2020, the company cut spending with its competitors when West Texas Intermediate’s crude oil futures briefly fell into negative territory for the first time on record.
Chevron’s net oil equivalent production increased 5% year over year to 3.13 million barrels per day in the second quarter. The company’s U.S. upstream operations were $ 1.4 billion, compared to a loss of $ 2.1 billion for the same period last year. Chevron said the average selling price per barrel of crude oil and natural gas liquids was $ 54, down from $ 19 last year.
Chevron’s shares were up 1.6% in early trading on Friday.
Exxon is expected to release its quarterly results on Friday morning. According to Refinitiv, the company is expected to earn 99 cents per share on sales of $ 66.80 billion. In the last quarter, the company made a profit and recorded a series of losses of four quarters. The company made 65 cents per unlisted share on sales of $ 59.15 billion.
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