Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

CHEVRON CORPORATION

(CVX)
  Report
Delayed Nyse  -  04:03 2022-10-03 pm EDT
151.73 USD   +5.61%
09:05aAdvisory : Chevron Corporation's 3Q 2022 Earnings Conference Call and Webcast
BU
09/30White House to meet oil industry over Hurricane Ian price-gouging concerns
RE
09/30FreeWire Technologies to Make Available Ultrafast, Battery-integrated EV Charging for Chevron and Texaco Stations
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

CHEVRON CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

08/04/2022 | 11:36am EDT

Second Quarter 2022 Compared with Second Quarter 2021

Key Financial Results
                                                      Earnings by Business Segment
                                                                   Three Months Ended                         Six Months Ended
                                                                        June 30                                    June 30
                                                                 2022                 2021                  2022                  2021
                                                                 (Millions of dollars)                      (Millions of dollars)
Upstream
United States                                              $        3,367          $ 1,446          $       6,605              $ 2,387
International                                                       5,191            1,732                  8,887                3,141
Total Upstream                                                      8,558            3,178                 15,492                5,528
Downstream
United States                                                       2,440              776                  2,926                  646
International                                                       1,083               63                    928                  198
Total Downstream                                                    3,523              839                  3,854                  844
Total Segment Earnings                                             12,081            4,017                 19,346                6,372
All Other                                                            (459)            (935)                (1,465)              (1,913)

Net Income (Loss) Attributable to Chevron Corporation (1) (2)

                                                        $       11,622          $ 3,082          $      17,881              $ 4,459

(1) Includes foreign currency effects.                     $          668          $    43          $         450              $    41

(2) Income (loss) net of tax; also referred to as "earnings" in the discussions that follow.



Net income attributable to Chevron Corporation for second quarter 2022 was $11.6
billion ($5.95 per share - diluted), compared with $3.1 billion ($1.60 per share
- diluted) in the second quarter of 2021. The net income attributable to Chevron
Corporation for the first six months of 2022 was $17.9 billion ($9.17 per share
- diluted), compared with $4.5 billion ($2.32 per share - diluted) in the first
six months of 2021.

Upstream earnings in second quarter 2022 were $8.6 billion compared with
$3.2 billion in the corresponding 2021 period. The increase was mainly due to
higher realizations and higher foreign currency benefits, partially offset by
higher operating expenses largely due to an early contract termination at Sabine
Pass. Earnings for the first six months of 2022 were $15.5 billion compared with
$5.5 billion a year earlier. The increase was mainly due to higher realizations
and favorable foreign currency effects.

Downstream earnings in second quarter 2022 were $3.5 billion compared with $839
million in the corresponding 2021 period. The increase was mainly due to higher
margins on refined product sales and favorable foreign exchange effects,
partially offset by higher operating expenses and lower earnings from the 50
percent-owned Chevron Phillips Chemical Company. Earnings for the first six
months of 2022 were $3.9 billion compared with $844 million in the corresponding
2021 period. The increase was mainly due to higher margins on refined product
sales and favorable foreign currency effects, partially offset by higher
operating expenses.

Refer to   "Results of Operations"   for additional discussion of results by
business segment and "All Other" activities for the second quarter and first six
months of 2022 versus the same periods in 2021.

Business Environment and Outlook


Chevron Corporation* is a global energy company with substantial business
activities in the following countries: Angola, Argentina, Australia, Bangladesh,
Brazil, Canada, China, Egypt, Equatorial Guinea, Israel, Kazakhstan, Kurdistan
Region of Iraq, Mexico, Nigeria, the Partitioned Zone between Saudi Arabia and
Kuwait, the Philippines, Republic of Congo, Singapore, South Korea, Thailand,
the United Kingdom, the United States, and Venezuela.
_____________________
* Incorporated in Delaware in 1926 as Standard Oil Company of California, the
company adopted the name Chevron Corporation in 1984 and ChevronTexaco
Corporation in 2001. In 2005, ChevronTexaco Corporation changed its name to
Chevron Corporation. As used in this report, the term "Chevron" and such terms
as "the company," "the corporation," "our," "we," "us" and "its" may refer to
Chevron Corporation, one or more of its consolidated subsidiaries, or all of
them taken as a whole, but unless stated otherwise they do not include
"affiliates" of Chevron - i.e., those companies generally owned 50 percent or
less. All of these terms are used for convenience only and are not intended as a
precise description of any of the separate companies, each of which manages its
own affairs.
                                       22

--------------------------------------------------------------------------------

Table of Contents


The company's objective is to deliver higher returns, lower carbon and superior
shareholder value in any business environment. Earnings of the company depend
mostly on the profitability of its upstream business segment. The most
significant factor affecting the results of operations for the upstream segment
is the price of crude oil, which is determined in global markets outside of the
company's control. In the company's downstream business, crude oil is the
largest cost component of refined products. Periods of sustained lower commodity
prices could result in the impairment or write-off of specific assets in future
periods and cause the company to adjust operating expenses, including employee
reductions, and capital and exploratory expenditures, along with other measures
intended to improve financial performance.

Governments, companies, communities, and other stakeholders are increasingly
supporting efforts to address climate change, recognizing that individuals and
society benefit from access to affordable, reliable, and ever-cleaner energy.
International initiatives and national, regional and state legislation and
regulations that aim to directly or indirectly reduce GHG emissions are in
various stages of adoption and implementation. These policies, some of which
support the global net zero emissions ambitions of the Paris Agreement, can
change the amount of energy consumed, the rate of energy-demand growth, the
energy mix, and the relative economics of one fuel versus another.
Implementation of these policies can be dependent on, and can affect the pace
of, technological advancements, the granting of necessary permits by governing
authorities, the availability of cost-effective, verifiable carbon credits, the
availability of suppliers that can meet sustainability and other standards,
evolving regulatory requirements affecting ESG standards or other disclosures,
and evolving standards for tracking and reporting on emissions and emission
reductions and removals. Beyond the legislative and regulatory landscape, ever
changing customer and consumer behavior can also influence energy demand by
affecting preferences and use of the company's products or competitors'
products, now and in the future.

Chevron supports the Paris Agreement's global approach to governments addressing
climate change and is committed to taking actions to help lower the carbon
intensity of its operations while continuing to meet the need for energy that
supports society. Chevron integrates climate change-related issues and the
regulatory and other responses to these issues into its strategy and planning,
capital investment reviews, and risk management tools and processes, where it
believes they are applicable. They are also factored into the company's
long-range supply, demand, and energy price forecasts. These forecasts reflect
estimates of long-range effects from climate change-related policy actions, such
as renewable fuel penetration and energy efficiency standards, and demand
response to oil and natural gas prices. The actual level of expenditure required
to comply with new or potential climate change-related laws and regulations and
amount of additional investments in new or existing technology or facilities,
such as carbon capture and storage, is difficult to predict with certainty and
is expected to vary depending on the actual laws and regulations enacted or
customer and consumer preference in a jurisdiction, the company's activities in
it, and market conditions.

Although the future is uncertain, many published outlooks conclude that fossil
fuels will remain a significant part of an energy system that increasingly
incorporates lower carbon sources of supply. The company will continue to
develop oil and gas resources to meet customers' demand for energy. At the same
time, Chevron believes that the future of energy is lower carbon. The company
will continue to maintain flexibility in its portfolio to be responsive to
changes in policy, technology, and customer preferences. Chevron aims to grow
its traditional oil and gas business, lower the carbon intensity of its
operations and grow lower carbon businesses in renewable fuels, hydrogen, carbon
capture and offsets. To grow its lower carbon businesses, Chevron plans to
target sectors of the economy where emissions are harder to abate or that cannot
be easily electrified, while leveraging the company's capabilities, assets and
customer relationships. The company's traditional oil and gas business may
increase or decrease depending upon regulatory or market forces, among other
factors.

Chevron's previously disclosed 2050 net zero upstream aspiration, carbon intensity targets and planned lower-carbon capital spend through 2028 can be found on pages 32 through 34 of the company's 2021 Annual Report on Form 10-K.


Refer to "Cautionary Statements Relevant to Forward-Looking Information" on page
2 and to "Risk Factors" on pages 20 through 25 of the company's 2021 Annual
Report on Form 10-K for a discussion of some of the inherent risks that could
materially impact the company's results of operations or financial condition.
                                       23

--------------------------------------------------------------------------------

Table of Contents


The effective tax rate for the company can change substantially during periods
of significant earnings volatility. This is due to the mix effects that are
impacted by both the absolute level of earnings or losses and whether they arise
in higher or lower tax rate jurisdictions. As a result, a decline or increase in
the effective income tax rate in one period may not be indicative of expected
results in future periods. Additional information related to the company's
effective income tax rate is included in   Note 10 Income Taxes   to the
Consolidated Financial Statements.

The company continually evaluates opportunities to dispose of assets that are
not expected to provide sufficient long-term value and to acquire assets or
operations complementary to its asset base to help augment the company's
financial performance and value growth. Asset dispositions and restructurings
may result in significant gains or losses in future periods.

The company closely monitors developments in the financial and credit markets,
the level of worldwide economic activity, and the implications for the company
of movements in prices for crude oil and natural gas. Management takes these
developments into account in the conduct of daily operations and for business
planning.

The outbreak of COVID-19 caused a significant decrease in demand for our products and created disruptions and volatility in the global marketplace beginning late in first quarter 2020. Demand has largely recovered; however, there continues to be uncertainty around the extent to which the COVID-19 pandemic may impact our future results, which could be material.

Comments related to earnings trends for the company's major business areas are as follows:


Upstream Earnings for the upstream segment are closely aligned with industry
prices for crude oil and natural gas. Crude oil and natural gas prices are
subject to external factors over which the company has no control, including
product demand connected with global economic conditions, industry production
and inventory levels, technology advancements, production quotas or other
actions imposed by OPEC+ countries, actions of regulators or governments,
weather-related damage and disruptions, competing fuel prices, natural and human
causes beyond the company's control such as the COVID-19 pandemic, and regional
supply interruptions or fears thereof that may be caused by civil unrest,
political uncertainty or military conflicts such as the ongoing conflict in
Ukraine. Any of these factors could also inhibit the company's production and/or
export capacity in an affected region. The company closely monitors developments
in the countries in which it operates and holds investments and seeks to manage
risks in operating its facilities and businesses.

The longer-term trend in earnings for the upstream segment is also a function of other factors, including the company's ability to find or acquire and efficiently produce crude oil and natural gas, changes in fiscal terms of contracts, and changes in tax, environmental and other applicable laws and regulations.


Caspian Pipeline Consortium (CPC), an equity affiliate, operates a 935-mile
crude oil export pipeline from the Tengiz Field in Kazakhstan to tanker-loading
facilities at Novorossiysk on the Russian coast of the Black Sea, providing the
main export route for crude oil production from both TCO and Karachaganak and
other producing fields in Kazakhstan. On March 21, 2022, two of the three
offshore loading moorings at the CPC marine terminal were damaged in a
weather-related incident. As a result, production at TCO was curtailed to
approximately 70 percent of capacity beginning March 25, 2022. Repairs have
since been completed for the two damaged offshore loading moorings. TCO
production facilities returned to normal rates on April 23, 2022. This incident
did not have a material impact on the company's results of operations or
consolidated financial position.

Governments (including Russia) have imposed and may impose additional sanctions
and other trade laws, restrictions and regulations that could lead to disruption
in our ability to produce, transport and/or export crude in the region around
Russia and could have an adverse effect on CPC operations and/or the company's
financial position. The financial impacts of such risks, including presently
imposed sanctions, are not currently material for the company; however, it
remains uncertain how long these conditions may last or how severe they may
become.

The company's third party costs can be subject to external factors beyond its
control including, but not limited to: the general level of inflation, tariffs
or other taxes imposed on goods or services, and market-based prices
                                       24

--------------------------------------------------------------------------------

Table of Contents

charged by the industry's material and service providers. Chevron utilizes contracts with various pricing mechanisms, so there may be a lag before the company's costs reflect the changes in market trends.


Inflationary pressures continue for both oil and gas inputs (such as rigs, pipe
and well services, etc.) as well as other industrial equipment and materials. In
the near term, slowing economic activity could moderate inflationary pressures.
The United States rig count is on track to be at pre-pandemic levels in the
third quarter of this year, driven in part by an increase in gas directed
drilling as U.S. natural gas prices and LNG exports increase. The international
rig count at the end of the second quarter was up from the previous quarter on
rising natural gas drilling with oil rigs steady.

The company is actively managing its timing of scheduled work, contracting,
procurement, and supply chain activities to assure reliable supply of goods and
services, while effectively managing costs in support of its operations. Supply
chain disruptions continue to limit the availability and deliverability of some
inputs throughout the industry. In response to supply backlogs, Chevron is
planning for longer lead times, identifying alternative supply sources and
substituting materials that can be utilized.

                     [[Image Removed: cvx-20220630_g1.jpg]]


The chart above shows the trend in benchmark prices for Brent crude oil, West
Texas Intermediate (WTI) crude oil, and U.S. Henry Hub natural gas. The Brent
price averaged $71 per barrel for the full-year 2021. During the second quarter
of 2022, Brent averaged $114 per barrel and ended July at about $114. The WTI
price averaged $68 per barrel for the full-year 2021. During the second quarter
of 2022, WTI averaged $109 per barrel and ended July at about $99. The majority
of the company's equity crude production is priced based on the Brent and WTI
benchmarks. Crude prices have remained strong in the second quarter of 2022
driven by geopolitical issues and OPEC+ production being below announced quotas,
although demand growth is slowing down due to macroeconomic factors and high
prices. (Refer to   "Selected Operating Data"   for the company's average U.S.
and international crude oil sales prices).

In contrast to price movements in the global market for crude oil, price changes
for natural gas are also impacted by seasonal supply/demand and infrastructure
conditions in local markets. In the United States, prices at Henry Hub averaged
$5.92 per thousand cubic feet (MCF) for the first six months of 2022, compared
with $3.16 during the first six months of 2021. At the end of July 2022, the
Henry Hub spot price was $8.66 per MCF.

Outside the United States, price changes for natural gas also depend on a wide
range of supply, demand and regulatory circumstances. The company's long-term
contract prices for liquefied natural gas (LNG) are typically linked to crude
oil prices. Most of the equity LNG offtake from the operated Australian LNG
assets is committed under binding long-term contracts, with some sold in the
Asian spot LNG market. International natural gas realizations averaged $9.04 per
MCF during the first six months of 2022, compared with $4.82 per MCF in the same
period last year. (Refer to   "Selected Operating Data"   for the company's
average natural gas sales prices for the U.S. and international regions.)
                                       25

--------------------------------------------------------------------------------

Table of Contents


The company's worldwide net oil-equivalent production in the first six months of
2022 averaged 2.98 million barrels per day, a decrease of 5 percent from the
first six months of 2021 mainly as a result of contract expirations in Thailand
and Indonesia. About 27 percent of the company's net oil-equivalent production
in the first six months of 2022 occurred in OPEC+ member countries of Angola,
Equatorial Guinea, Kazakhstan, Nigeria, the Partitioned Zone between Saudi
Arabia and Kuwait and Republic of Congo.

Refer to "Results of Operations" for additional discussion of the company's upstream business.


Downstream Earnings for the downstream segment are closely tied to margins on
the refining, manufacturing and marketing of products that include gasoline,
diesel, jet fuel, lubricants, fuel oil, fuel and lubricant additives,
petrochemicals and renewable fuels. Industry margins are sometimes volatile and
can be affected by the global and regional supply-and-demand balance for refined
products and petrochemicals, and by changes in the price of crude oil, other
refinery and petrochemical feedstocks, and natural gas. Industry margins can
also be influenced by inventory levels, geopolitical events, costs of materials
and services, refinery or chemical plant capacity utilization, maintenance
programs, and disruptions at refineries or chemical plants resulting from
unplanned outages due to severe weather, fires or other operational events.

Other factors affecting profitability for downstream operations include the
reliability and efficiency of the company's refining, marketing and
petrochemical assets, the effectiveness of its crude oil and product supply
functions, and the volatility of tanker-charter rates for the company's shipping
operations, which are driven by the industry's demand for crude oil and product
tankers. Other factors beyond the company's control include the general level of
inflation and energy costs to operate the company's refining, marketing and
petrochemical assets, and changes in tax, environmental, and other applicable
laws and regulations.

Refining margins have been strong in 2022 because of recovering demand for
refined products, low product inventories, industry refinery capacity
constraints and lower product exports from Russia and China. Refining
utilization has been strong in 2022 to keep pace with demand growth. Although
refining margins have been elevated, there are signs that higher refined product
prices and concerns over macroeconomic conditions are slowing demand and
reducing margins.

The company's most significant marketing areas are the West Coast and Gulf Coast
of the United States and Asia Pacific. Chevron operates or has significant
ownership interests in refineries in each of these areas. Additionally, the
company has a growing presence in renewable fuels, as evidenced by the recent
acquisition of Renewable Energy Group, Inc.

Refer to "Results of Operations" for additional discussion of the company's downstream operations.


All Other consists of worldwide cash management and debt financing activities,
corporate administrative functions, insurance operations, real estate activities
and technology companies.

Operating Developments

Noteworthy operating developments in recent months included the following:

•Indonesia - Announced a partnership with Indonesia's PT Pertamina (Persero) to explore potential lower carbon business opportunities in Indonesia.

•Kazakhstan - Announced a memorandum of understanding to explore potential lower carbon business opportunities in Kazakhstan via a collaboration with JSC NC "KazMunayGas".


•United States - Sanctioned the Ballymore project in the deepwater U.S. Gulf of
Mexico. The field is planned to be produced through an existing facility with an
allocated capacity of 75,000 barrels of crude oil per day.

•United States - Announced launch of a carbon capture and storage (CCS) project
aimed at reducing the carbon intensity of the company's upstream operations in
California.

•United States - Formed Bunge Chevron Ag Renewables LLC, a joint venture
designed to develop renewable fuel feedstocks leveraging Bunge's expertise in
oilseed processing and farmer relationships and Chevron's expertise in fuels
manufacturing and marketing.
                                       26

--------------------------------------------------------------------------------

Table of Contents


•United States - Acquired a 50 percent stake in an expanded joint venture to
develop the Bayou Bend CCS hub, with the goal of it becoming one of the first
offshore CCS projects in the United States.

•United States - Invested in lower-carbon technologies, including Infinitum
Electric (ultra-high-efficiency-lightweight motors), Emerald Technology Ventures
(sustainable packaging), and TAE Technologies (nuclear fusion).

•United States - Announced agreement to supply fuel linked to renewable natural
gas for a Walmart Inc. demonstration of Cummins Inc.'s new 15-liter natural gas
engine for heavy-duty trucks.

•United States - Completed acquisition of Renewable Energy Group, Inc., making Chevron one of the leading renewable fuels producers in the United States.


•United States - Earned Project Canary's highest certification rating on
operational and environmental performance for almost all participating Permian
and DJ basins upstream assets, positioning the company to market responsibly
sourced natural gas (RSG) from the certified assets beginning in the second half
of 2022.


                                       27

--------------------------------------------------------------------------------

Table of Contents

Results of Operations


Business Segments The following section presents the results of operations and
variances on an after-tax basis for the company's business segments - Upstream
and Downstream - as well as for "All Other." (Refer to   Note 7 Operating
Segments and Geographic Data   for a discussion of the company's "reportable
segments," as defined under the accounting standards for segment reporting.)

Upstream

                              Three Months Ended              Six Months Ended
                                    June 30                       June 30
                               2022            2021          2022          2021
                                           (Millions of dollars)
U.S. Upstream Earnings   $    3,367          $ 1,446      $   6,605      $ 2,387


U.S. upstream reported earnings of $3.4 billion in second quarter 2022, compared
with $1.4 billion from a year earlier. The increase was primarily due to higher
realizations of $2.7 billion, partially offset by higher operating expenses of
$790 million largely due to an early contract termination at Sabine Pass.

U.S. upstream reported earnings of $6.6 billion in the first six months of 2022,
compared with $2.4 billion from a year earlier. The increase was primarily due
to higher realizations of $4.8 billion and higher sales volumes of $300 million,
partially offset by higher operating expenses of $870 million largely due to an
early contract termination at Sabine Pass.

The average realization per barrel for U.S. crude oil and natural gas liquids in
second quarter 2022 was $89, compared with $54 a year earlier. The average
realization per barrel for U.S. crude oil and natural gas liquids in the first
six months of 2022 was $83, compared with $51 a year earlier. The average
natural gas realization in second quarter 2022 was $6.22 per thousand cubic
feet, compared with $2.16 in the 2021 period. The average natural gas
realization in the first six months of 2022 was $5.13 per thousand cubic feet,
compared with $2.16 in the 2021 period.

Net oil-equivalent production of 1.17 million barrels per day in second quarter
2022 was up 36,000 barrels per day, or 3 percent, from a year earlier. Net
oil-equivalent production of 1.18 million barrels per day in the first six
months of 2022 was up 72,000 barrels per day, or 7 percent, from a year earlier.
The increase for both quarterly and year-to-date periods was due to net
production increases in the Permian Basin, partially offset by normal field
declines in other locations.

The net liquids component of oil-equivalent production of 888,000 barrels per
day in second quarter 2022 was up 4 percent from the corresponding 2021 period.
The net liquids component of oil-equivalent production of 884,000 barrels per
day in the first six months of 2022 was up 7 percent from the corresponding 2021
period. Net natural gas production increased 2 percent to 1.71 billion cubic
feet per day in second quarter 2022 from the 2021 comparative period. Net
natural gas production was 1.77 billion cubic feet per day in the first six
months of 2022, an increase of 6 percent from the 2021 period.

                                           Three Months Ended              Six Months Ended
                                                 June 30                       June 30
                                            2022            2021          2022          2021
                                                        (Millions of dollars)

International Upstream Earnings* $ 5,191 $ 1,732 $ 8,887 $ 3,141

* Includes foreign currency effects $ 603 $ 78 $

459 $ 26



International upstream operations earned $5.2 billion in second quarter 2022,
compared with $1.7 billion a year ago. The increase in earnings was primarily
due to higher realizations of $3.0 billion and asset sale gains of $200 million,
partially offset by lower sales volumes of $560 million. Foreign currency
effects had a favorable impact on earnings of $525 million between periods.

International upstream operations earned $8.9 billion in the first six months of
2022, compared with $3.1 billion a year ago. The increase in earnings was
primarily due to higher realizations of $5.5 billion and asset sale gains of
$200 million, partially offset by lower sales volumes of $890 million. Foreign
currency effects had a favorable impact on earnings of $433 million between
periods.
                                       28

--------------------------------------------------------------------------------

Table of Contents


The average sales price for crude oil and natural gas liquids in second quarter
2022 was $102 per barrel, up from $62 a year earlier. The average sales price
for crude oil and natural gas liquids in the first six months of 2022 was $98
per barrel, up from $59 a year earlier. The average sales price of natural gas
was $9.23 per thousand cubic feet in second quarter 2022, compared with $4.92 in
the 2021 period. The average sales price of natural gas was $9.04 per thousand
cubic feet in the first six months of 2022, compared with $4.82 in the 2021
period.

Net oil-equivalent production of 1.72 million barrels per day in second quarter
2022 was down 266,000 barrels per day from second quarter 2021. Net
oil-equivalent production of 1.80 million barrels per day in the first six
months of 2022 was down 218,000 barrels per day, or 11 percent, from a year
earlier. The decrease for both quarterly and year-to-date periods was primarily
due to lower production following expiration of the Erawan concession in
Thailand and Rokan concession in Indonesia and unfavorable entitlement effects
due to higher prices.

The net liquids component of oil-equivalent production of 799,000 barrels per
day in second quarter 2022 decreased 19 percent from the 2021 period. The net
liquids component of oil-equivalent production of 828,000 barrels per day in the
first six months of 2022 decreased 18 percent from the 2021 period. Net natural
gas production of 5.55 billion cubic feet per day in second quarter 2022
decreased 7 percent from the 2021 period. Net natural gas production of 5.83
billion cubic feet per day in the first six months of 2022 decreased 4 percent
from the 2021 period.


Downstream

                                 Three Months Ended               Six Months Ended
                                      June 30                          June 30
                                  2022             2021            2022           2021
                                               (Millions of dollars)
U.S. Downstream Earnings   $     2,440            $ 776      $    2,926     

$ 646



U.S. downstream reported earnings of $2.4 billion in second quarter 2022,
compared with $776 million a year earlier. The increase was mainly due to higher
margins on refined product sales of $2.1 billion, partially offset by lower
earnings from the 50 percent-owned Chevron Phillips Chemical Company of $270
million and higher operating expenses of $230 million.

U.S. downstream reported earnings of 2.9 billion in the first six months of
2022, compared with $646 million a year earlier. The increase was mainly due to
higher margins on refined product sales of $2.66 billion, partially offset by
higher operating expenses of $280 million and lower earnings from the 50
percent-owned Chevron Phillips Chemical Company of $80 million.

Refinery crude oil input in second quarter 2022 decreased 8 percent to 881,000
barrels per day and for the first six months of 2022, crude oil input decreased
2 percent to 898,000 barrels per day from the corresponding 2021 period. The
decrease in both quarterly and year-to-date periods was primarily due to planned
turnarounds.

Refined product sales in second quarter 2022 were up 4 percent to 1.21 million
barrels per day and for the first six months of 2022, refined product sales were
up 10 percent to 1.21 million barrels per day from the corresponding 2021
periods. The increase for both quarterly and six-month periods was mainly due to
higher jet fuel demand as travel restrictions associated with the COVID-19
pandemic continue to ease.

                                            Three Months Ended                 Six Months Ended
                                                  June 30                          June 30
                                              2022              2021           2022            2021
                                                           (Millions of dollars)
International Downstream Earnings*    $      1,083             $ 63      $     928            $ 198

* Includes foreign currency effects   $        145             $  1      $     168            $  60


International downstream reported earnings of $1.1 billion in second quarter
2022, compared with $63 million a year earlier. The increase in earnings was
mainly due to higher margins on refined product sales of
                                       29

--------------------------------------------------------------------------------

Table of Contents

$1.1 billion and a favorable swing in foreign currency effects of $144 million between periods, partially offset by higher operating expenses of $160 million.

International downstream reported earnings of $928 million in the first six months of 2022, compared with $198 million a year earlier. The increase in earnings was mainly due to higher margins on refined product sales of $970 million and a favorable swing in foreign currency effects of $108 million between periods, partially offset by higher operating expenses of $290 million.


Refinery crude oil input of 634,000 barrels per day in second quarter 2022
increased 9 percent from the year-ago period. For the first six months of 2022,
crude oil input was 626,000 barrels per day, up 12 percent from the year-ago
period. The increase for both the quarterly and year-to-date periods was due to
increased refinery runs in response to higher demand.

Total refined product sales in second quarter 2022 were up 4 percent to 1.34
million barrels per day and for the first six months of 2022, refined product
sales were up 5 percent to 1.33 million barrels per day from the corresponding
2021 periods. The increase for both quarterly and six-month periods was mainly
due to higher jet fuel demand as travel restrictions associated with the
COVID-19 pandemic continue to ease.

All Other

                                            Three Months Ended              Six Months Ended
                                                 June 30                        June 30
                                             2022             2021         2022          2021
                                                        (Millions of dollars)
Earnings/(Charges)*                   $     (459)           $ (935)     $ (1,465)     $ (1,913)

* Includes foreign currency effects   $      (80)           $  (36)     $   

(177) $ (45)



All Other consists of worldwide cash management and debt financing activities,
corporate administrative functions, insurance operations, real estate activities
and technology companies.

Net charges in second quarter 2022 were $459 million, compared to $935 million a
year earlier. The decrease in net charges between periods was mainly due to
lower employee benefit costs, pension expense and interest expense, partially
offset by a unfavorable swing of $44 million in foreign currency effects.

Net charges in the first six months of 2022 were $1.5 billion, compared to $1.9 billion a year earlier. The decrease in net charges between periods was mainly due to lower pension expense, employee benefit costs and interest expense, partially offset by a unfavorable swing of $132 million in foreign currency effects.

                                       30

--------------------------------------------------------------------------------

Table of Contents

© Edgar Online, source Glimpses

All news about CHEVRON CORPORATION
09:05aAdvisory : Chevron Corporation's 3Q 2022 Earnings Conference Call and Webcast
BU
09/30White House to meet oil industry over Hurricane Ian price-gouging concerns
RE
09/30FreeWire Technologies to Make Available Ultrafast, Battery-integrated EV Charging for C..
AQ
09/30Sector Update: Energy Stocks Slip Pre-Bell Friday
MT
09/30Chevron Unit Accomplishes First Shipment of Offset-Paired Liquefied Natural Gas Cargo
MT
09/30News Highlights: Top Energy News of the Day
DJ
09/29Chevron Delivers First Offset-Paired LNG Cargo
BU
09/29FreeWire to Provide EV Charging Equipment for Chevron, Texaco Stations
DJ
09/29FreeWire Technologies to Provide Electric Vehicle Charging Equipment at Chevron Branded..
MT
09/29Chevron Sells California HQ To Sunset Development For Undisclosed Sum
MT
More news
Analyst Recommendations on CHEVRON CORPORATION
More recommendations