Chevron Corp. on July 27 reported second-quarter GAAP earnings of $3.4 billion, or $1.78 per diluted share. The results were an improvement from earnings of $1.5 billion, or 77 cents per share, in the second quarter of 2017, but fell well short of the S&P Capital IQ consensus estimate of $4.0 billion, or $2.08 per diluted share.
"Results in 2018 benefited from higher crude oil prices, strong operations and higher production," Chairman and CEO Michael Wirth said in a July 27 earnings release.
Included in the current quarter was a receivable write-down of $270 million charged to operating expense.
Foreign currency effects increased earnings in the second quarter by $265 million, compared with an increase of $3 million a year earlier. Sales and other operating revenues in the second quarter were $40 billion, compared to $33 billion in the year-ago period.
U.S. upstream operations earned $838 million in the second quarter, compared with a loss of $102 million from a year earlier, reflecting higher realizations, lower impairment charges and higher crude oil production, partially offset by lower gains on asset sales. The company's average sales price of crude oil and natural gas liquids was $59 per barrel in the second quarter, up from $41/bbl a year earlier. The average sales price of natural gas was $1.61/MMBtu in the second quarter, compared with $2.32/MMBtu in the same quarter last year. Net oil-equivalent production of 739,000 barrels per day in the second quarter was up 38,000 bbl/d a year earlier.
U.S. downstream operations earned $657 million in the second quarter, compared with earnings of $634 million a year earlier. The increase was primarily due to higher margins on refined product sales, lower tax expense and higher equity earnings from the 50%-owned Chevron Phillips Chemical Co. LLC. These increases were partially offset by higher operating expenses, primarily due to planned turnaround activity.
Cash flow from operations in the first six months was $11.9 billion, compared with $8.7 billion in the corresponding 2017 period.
Capital and exploratory expenditures in the first six months were $9.2 billion, compared with $8.9 billion in the corresponding 2017 period. The amounts included $2.7 billion in the current year and $2.1 billion in 2017 for the company's share of expenditures by affiliates, which did not require cash outlays by the company. Expenditures for upstream represented 88% of the company-wide total in the first six months.
Cash flow from operations in the first three months was $5.0 billion compared with $3.8 billion in the corresponding 2017 period.
Capital and exploratory expenditures in the first three months were $4.4 billion, flat to the year prior.