Chevron's quarterly profit beats expectations

Chevron Corp posted its second-highest quarterly profit ever, beating analysts' estimates. The corporation exceeded all forecasts due to the rapid growth of global demand for oil and gas, as well as the growth of oil production in the fields in the United States.

Chevron's third-quarter net income was $11.2 billion, or $5.78 per share. The company's net profit is almost double the $6.1 billion from the same period last year. Earnings also exceed Wall Street's estimate of $4.86 per share.

As claimed by Chevron CFO Pierre Breber, the increase in the company's net income will contribute to an increase in project costs, as well as an increase in oil and gas production next year.

The company's operating cash flow rose significantly to $15.3 billion, much higher than in the previous quarter. At the same time, Chevron's return on capital employed jumped to 25%.

According to Michael Wirth, CEO of Chevron, the company was able to post strong financial results this quarter. Wirth also noted that the level of oil and gas production from the largest US Permian Basin has also reached a quarterly record.

Oil production in the Permian Basin has exceeded 700,000 barrels per day. These indicators exceed the indicators of the previous year by 12%, as well as the indicators of the second quarter of this year. In the first 9 months of 2022, Chevron's global production is down by about 100,000 bpd compared to the same period last year.

The company has confirmed its 2025 production target of 1 million barrels per day from the US Permian field. Chevron also plans to achieve 3% annual production growth between 2023 and 2026.

Chevron CFO Breber said the company will increase spending on new projects by 20% to $17 billion in 2023. The company's expenses in 2022 will be less than $15 billion.

Chevron has pledged to use profits to boost dividends, fossil fuel and clean energy production, and reduce the company's debt.

According to Berber, once the above three goals are completed, the company plans to do share buybacks $15 billion a year.