Chevron’s second-quarter profit beat expectations for record shale production

The biggest reason for Chevron’s lower earnings is that oil prices are down significantly from this time last year, when they spiked because of Russia’s invasion of Ukraine.

CEO Mike Wirth said in an interview with Barron. “We are at lower prices than they were a year ago, but they are higher than they were two, three years ago. We have to be prepared for the highs and lows.

“We have a company that is built to last through the cycles,” he added. “in [oil prices] Less than $50, we cover all of our earnings and all of our capital expenditure.”

Chevron’s independent directors gave Wirth a vote of confidence, waiving the company’s mandatory retirement age of 65. He will turn 63 later this year.

The company also announced that its Chief Financial Officer, Pierre Breber, will be retiring after 35 years with the company. Emir Bonner, Chief Technology Officer, will succeed him from March 2024.

In a statement, Wirth thanked Breber for his contributions and welcomed Bonner, a 24-year veteran of Chevron Corporation (stock ticker: CVX), saying it can “build on Chevron’s strong foundation and create more shareholder value.”

Chevron revealed that it has record quarterly production in the Permian Basin, a shale-producing region in western Texas and southeastern New Mexico. Production there was 11% higher than in the second quarter of last year. It produced 772,000 barrels of oil equivalent per day, and added that it was on track to its full-year guidance.

Chevron said its quarterly dividends to shareholders of $7.2 billion also set a record, including $4.4 billion in share buybacks and $2.8 billion in dividends.

Chevron expects to finalize its acquisition of shale drilling company PDC Energy in August.

Write to Liz Moyer at [email protected]