Chevron Corp. (CVX) filed Quarterly Report for the period ended 2009-09-30.
Chevron is the fifth-largest integrated energy company in the world. Headquartered in San Ramon California and conducting business in approximately 180 countries this highly competitive corporation is engaged in every aspect of the oil and natural gas industry including exploration and production; refining marketing and transportation; chemicals manufacturing and sales; and power generation. Chevron Corp. has a market cap of $152.98 billion; its shares were traded at around $76.28 with a P/E ratio of 14 and P/S ratio of 0.6. The dividend yield of Chevron Corp. stocks is 3.5%. Chevron Corp. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Chevron Corp. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Net income attributable to Chevron Corporation for the third quarter 2009 was $3.83 billion ($1.92 per share — diluted), compared with $7.89 billion ($3.85 per share — diluted) in the corresponding 2008 period. Net income attributable to Chevron Corporation for the first nine months of 2009 was $7.41 billion ($3.71 per share — diluted), versus $19.04 billion ($9.23 per share — diluted) in the 2008 first nine months.
Downstream earnings were $194 million in the third quarter 2009, compared with $1.83 billion in the year-earlier period. Earnings for the first nine months of 2009 were $1.18 billion, versus $1.35 billion in the corresponding 2008 period. Earnings for the first nine months of 2009 included $540 million of gains in the first half of the year on sales of marketing businesses outside the United States.
U.S. upstream earnings of $878 million in the third quarter of 2009 decreased about $1.3 billion from the same period last year. Lower prices for crude oil and natural gas reduced earnings by about $1.9 billion between periods, while gains on asset sales were approximately $300 million lower. These effects were partly offset by a benefit to income of about $800 million due to an increase in net oil-equivalent production. An additional benefit to income of approximately $500 million from lower operating expenses was substantially offset by higher depreciation and other items. The benefit from lower operating expenses was largely associated with charges recorded in the third quarter 2008 due to hurricane damages.
The average realization per barrel for crude oil and natural gas liquids in the third quarter of 2009 was approximately $60, compared with $107 a year earlier. For the nine-month periods, average realizations were about $50 and $101 for 2009 and 2008, respectively. The average natural-gas realization in the third quarter 2009 was $3.28 per thousand cubic feet, compared with $8.64 in the year-ago period. The nine-month realizations were $3.56 in 2009 and $8.66 in 2008.
Earnings for the first nine months of 2009 were $5.3 billion, down $7.3 billion from the same period in 2008. Lower prices for crude oil and natural gas decreased earnings by $8.2 billion, while foreign-currency effects and higher expenses (operating, depreciation and exploration) reduced income by a total of $1.5 billion between periods. Partially offsetting these items were benefits of $2.1 billion resulting from an increase in sales volumes of crude oil and $400 million related to the Gorgon project (discussed above).
The average realization per barrel of crude oil and natural gas liquids in the third quarter 2009 was about $62, compared with $103 in the corresponding 2008 period. For the 2009 nine-month period, the average realization was about $52 per barrel, down from $100 in 2008. The average natural-gas realization in the 2009 third quarter was $3.92 per thousand cubic feet, down from $5.37 in the third quarter last year. Between the nine-month periods, the average natural-gas realization decreased to $3.95 from $5.21.
CVX is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, Dodge & Cox, David Dreman of Dreman Value Management, Richard Aster Jr of Meridian Fund, Irving Kahn of Kahn Brothers & Company Inc., Richard Snow of Snow Capital Management, L.P., Kenneth Fisher of Fisher Asset Management, LLC, Richard Snow of Snow Capital Management, L.P., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
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