Shares of Chevron Corp (NYSE: CVX) are down 2.0% on Friday after the oil giant said its Q1 profit fell shy of Street estimates despite a close to four-fold increase on a year-over-year basis.
Chevron Q1 financial highlights
- Net income printed at $6.26 billion that translates to $3.22 per share.
- In Q1 last year, net income was capped at $1.38 billion (72 cents a share).
- Adjusted for one-time items, per-share earnings came in at $3.36.
- At $54.37 billion, revenue was up 69.8%, as per the earnings press release.
- FactSet consensus was for $3.41 of adjusted EPS on $51.14 billion in revenue.
Average price for a barrel of crude oil and natural gas liquids jumped 60.4% in the recent quarter, while natural gas average sales price per thousand cubic feet of natural gas climbed 90.7%. The stock is up more than 30% for the year.
Jim Cramer says buy the stock
Other notable figures in the earnings report include a 10% increase in U.S. domestic production and an 8.0% decline internationally.
Chevron generated $8.10 billion in cash flow from operations – close to a 100% annualised increase. On CNBC’s “Squawk on the Street”, Jim Cramer said:
Just buy this stock. This is the most attractive of the large caps because of the yield and buyback. They’re doing a lot of offshore; offshore makes a lot of money. They’re doing a lot of low-carbon stuff. I got some comfort from Mike Worth about the pipeline that goes through Russia as well.
For strong Q1 revenue, Chevron cited post-pandemic demand and higher oil prices that Cramer says could climb back to $110 a barrel and, therefore, be a tailwind for the energy company.
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Source: https://invezz.com/news/2022/04/29/chevron-q1-results-cvx-is-the-most-attractive-of-the-large-caps/