Chevron Reports Up to $4B Impairment of U.S. Upstream Assets
January 3, 2024
☀️Trending News
Chevron Corporation ($NYSE:CVX), a multinational energy corporation headquartered in San Ramon, California, has reported that it expects to record up to $4 billion in impairments for its U.S. upstream assets. This comes as the result of lower prices and reduced volumes of crude oil and natural gas. Chevron Corporation is one of the world’s leading integrated energy companies. It 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.
Share Price
After the announcement, its stock opened at $150.0 and closed at $149.5, up 0.2% from its previous closing price of 149.2. It appears that investors remain confident in the company despite the impairment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chevron Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 202.5k | 25.46k | 12.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chevron Corporation. More…
| Operations | Investing | Financing |
| 35.67k | -14.87k | -30.39k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chevron Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 263.93k | 97.68k | 87.55 |
Key Ratios Snapshot
Some of the financial key ratios for Chevron Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.8% | 636.5% | 18.0% |
| FCF Margin | ROE | ROA |
| 10.1% | 14.1% | 8.6% |
Analysis
GoodWhale conducted an analysis of CHEVRON CORPORATION‘s financials and found that it is classified as a ‘rhino’. This means that it has achieved moderate revenue or earnings growth. Investors who may be interested in such company could include those who are looking for dividend yield and strong cash flows. CHEVRON CORPORATION has a high health score of 10/10 with regard to its cashflows and debt, indicating that the company is capable to pay off debt and fund future operations. Moreover, it has strong dividend and medium ratings in terms of asset growth, profitability, and growth. More…
Peers
The Chevron Corp competes with Exxon Mobil Corp, Occidental Petroleum Corp, and ConocoPhillips. All of these companies are in the business of exploring for, developing, and producing crude oil and natural gas. Chevron is one of the largest of the supermajor oil companies, with operations in more than 180 countries.
– Exxon Mobil Corp ($NYSE:XOM)
Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999 by the merger of Exxon (formerly the Standard Oil Company of New Jersey) and Mobil (formerly the Standard Oil Company of New York). The world’s seventh largest company by revenue, ExxonMobil is also the seventh largest publicly traded company by market capitalization. The company ranked ninth globally in the Forbes Global 2000 list in 2014.
– Occidental Petroleum Corp ($NYSE:OXY)
Occidental Petroleum Corp is a large American oil and gas company with operations in the United States, the Middle East, and Latin America. The company has a market cap of 63.77B as of 2022 and a return on equity of 29.73%. Occidental Petroleum is one of the largest oil and gas companies in the world and is engaged in the exploration, production, and marketing of crude oil and natural gas. The company’s primary operations are in the United States, but it also has a significant presence in the Middle East and Latin America. Occidental Petroleum is a publicly traded company and its shares are listed on the New York Stock Exchange.
– ConocoPhillips ($NYSE:COP)
ConocoPhillips is an American multinational energy corporation with its headquarters in Houston, Texas. The company is engaged in the exploration, production, marketing, and transportation of crude oil, bitumen, natural gas, and liquefied natural gas. As of December 31, 2019, the company had estimated proved reserves of 8.4 billion barrels of oil equivalent.
ConocoPhillips has a market capitalization of $150.08 billion as of January 2021. The company’s return on equity was 30.9% for the year ended December 31, 2020.
ConocoPhillips is one of the world’s largest independent exploration and production companies, with operations in more than 30 countries. The company’s main business activities include the exploration, development, production, and marketing of crude oil, natural gas, and liquefied natural gas. ConocoPhillips also has a significant refining and marketing business.
Summary
Chevron Corporation, one of the largest integrated energy companies in the world, recently announced that it is expecting to incur up to $4 billion in impairment losses on its US upstream assets. This has caused some concern among investors who are now evaluating the company’s financial and operational performance. In light of this development, it is important for investors to consider Chevron’s financial health, production outlook, and debt levels when assessing the company’s stock.
Additionally, investors should also be aware of the potential risks associated with investing in Chevron, such as the potential for geopolitical events to disrupt the company’s operations. Further, they should evaluate the company’s ability to generate free cash flow and maintain a healthy dividend payout ratio. With these considerations in mind, investors should be able to make an informed decision about whether investing in Chevron Corporation is a good fit for their portfolio.
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