Chevron Corporation (NYSE: CVX) opened with a gap down, and fell over 2.2% on January 27th, 2017 (as of 11:04 AM EST; Source: Google finance) given their weaker results.
The group delivered earnings of $415 million for the fourth quarter of 2016 against a loss of $588 million in the prior corresponding period (PCP). However, CVX faced foreign currency impact which hurt their earnings in the 2016 quarter.
Chevron’s global net oil-equivalent production remained at 2.67 million barrels per day in the fourth quarter 2016. Falling normal field, asset sales impact, production entitlement effects in many locations coupled with civil unrest in Nigeria impact offset their rising Production from major capital projects. As a result, the group’s Net oil-equivalent production fell 1% to 2.59 million barrels per day for the fiscal year of 2016.
On the other side, Chevron Corporation shipped their initial gas and cargo from Gorgon Project in Australia as well as the first gas from their Chuandongbei Project in China started. Moreover, CVX enhanced production from their Permian Basin shale and tight oil properties. Chevron Corporation announced the final investment decision on the Future Growth while intends to improve over 900 million barrels of net oil-equivalent proved reserves in 2016, mainly contributed from Future Growth Project at Tengizchevroil, the Permian Basin in the United States and the Wheatstone Project in Australia.
Meanwhile, the group’s U.S. downstream operations were breakeven in the fourth quarter of 2016 on the back of declining margins on refined product sales and higher tax items. Refinery crude oil input lost 21% to 721,000 barrels per day in the fourth quarter of 2016 impacted by the planned turnaround activity at the company’s refinery in Richmond, California.
However, Cash flow from operations reached $12.8 billion during 2016 against $19.5 billion in pop. Accordingly, to curb this weak performance, the group is controlling costs and operating expenses by $14 billion. Chevron Corporation is also making efforts to enhance their earnings and balance cash flow in 2017 by focusing on spending and control costs for further growth. With these efforts, the management intends to impure their annual dividend payout for the 29th consecutive year on 2016. CVX currently has a decent dividend yield of 3.7%.
CVX stock rallied over 13.8% in the last three months on January 27th, 2017 (as of 11:27 AM EST; Source: Google finance).