Chevron Rides On Oil, and Oil Is Falling
Chevron (NYSE:CVX) released first-quarter operating results on Friday morning that didn’t seem to inspire investors to action one way or another. Total revenue declined 6.4 percent to $56,818 billion, which underwhelmed many observers hoping to see top-line growth out of the company. This was mainly due to lower prices for crude oil.
However, net income of $6.2 billion, or $3.18 per share, beat estimates for earnings of $3.07 per share.
“Our first quarter earnings were strong,” commented Chairman and CEO John Watson. “Our consistent financial performance has enabled us to significantly increase the dividend again, and fund major development projects that are the foundation of the company’s future growth in production, earnings and cash flows.”
Chevron’s board approved an 11.1 percent increase in the quarterly dividend to $1.00 per share. Chevron also repurchased $1.27 billion of common stuck under its ongoing share repurchase program…
“Our key development projects remain on track,” Watson added. “Construction is progressing well on the Gorgon and Wheatstone LNG projects in Australia. Important milestones have been reached recently for our Jack/St. Malo and Big Foot deepwater projects in the Gulf of Mexico, and both remain on schedule for start-up in 2014.”
Capital and exploratory expenditures in the first three months of 2013 were $8.9 billion, compared with $6.4 billion in the year-ago period.
Chevron’s average sale price for a barrel of oil fell from $102 last year to $94 in the U.S.
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