Chevron Misses Q2 Expectations Due To ‘Weaker Upstream, Downstream Outcomes’ However Permian Manufacturing Hits New File – Chevron (NYSE:CVX)

Shares of Chevron Corp CVX tanked in early buying and selling on Monday, as the corporate reported downbeat second-quarter outcomes simply days after unveiling plans to relocate its headquarters.

The outcomes got here amid an thrilling earnings season. Listed here are some key analyst takeaways.

• RBC Capital Markets analyst Biraj Borkhataria maintained an Outperform score, whereas lowering the worth goal from $190 to $180.
• Truist Securities analyst Neal Dingmann reiterated a Maintain score, whereas decreasing the worth goal from $156 to $154.
• Goldman Sachs Aanalyst Neil Mehta reaffirmed a Purchase score and worth goal of $177.

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RBC Capital Markets: Chevron reported an earnings miss attributable to “weaker upstream and downstream outcomes,” Borkhataria mentioned. “Operationally, CVX continues to carry out properly with Permian manufacturing hitting a(nother) new document, and full-year steering raised,” whereas additional de-risks the 1mboed 2025 goal, he added.

Arbitration delays are proving to be “a major distraction to what’s in any other case a transparent funding case,” the analyst said. He added, nonetheless, that the weak spot within the inventory is “pricing in a extra adverse state of affairs already.”

Truist Securities: Chevron reported its earnings and free money flows beneath consensus attributable to weak commodity costs and downstream earnings, Dingmann mentioned. Stabroek JOA (Joint Working Settlement) has set a listening to for 2025, additional delaying the closure of the Hess acquisition, he added.

“In further to Permian manufacturing doubtless hitting 1+ mmboepd subsequent 12 months, CVX may see stable GOM manufacturing upside by 2026 all of the whereas lowering unit drilling prices,” the analyst wrote. The corporate might preserve its quarterly dividend at $1.63 per share, whereas reaching its share buyback goal of $17.5 billion this 12 months, he additional said.

Goldman Sachs: Chevron reported adjusted earnings of $2.55 per share, lacking its personal steering of $2.93 per share, Mehta mentioned. Manufacturing volumes got here in increased than anticipated, with the beat being pushed by increased Worldwide fuel, he added.

“On TCO, the corporate famous completion of TA on the Second Technology Injection plant and progressed start-up of the WPMP undertaking,” the analyst wrote. The earnings name may deal with updates on the Hess transaction, commentary across the Tengiz execution, upstream quantity outlook, and expectations for capital returns, he additional said.

CVX Value Motion: Shares of Chevron had declined by 3.22% to $143.77 on the time of publication on Monday.

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