Gas pumps are seen at a Chevron gas station in Orlando.
Paul Hennessy | SOPA Images | Lightrocket | Getty Images
Chevron beat earnings expectations Friday, but its profit fell from the year-ago period as its refineries and international gas business faced headwinds.
Here is what Chevron reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $2.93 adjusted vs. $2.87 expected
Revenue: $48.72 billion vs. $50.66 billion expected
The oil major’s net income declined 16% to $5.5 billion, or $2.97 per share, compared with the same quarter a year ago when it earned $6.57 billion, or $3.46 per share. Excluding one-time items, Chevron reported earnings of $2.93 per share, which beat Wall Street estimates.
Revenue of $48.72 billion fell from $50.79 billion a year ago and was short of analyst expectations.
Chevron shares fell about 1% in premarket trading on the news.
The company attributed declining profits to lower sales margins at its refineries and lower natural gas prices eating into profits in international production. Exxon faced similar issues this quarter.
Oil prices have gained more than 16% this year and gasoline futures are up 31%, but the rally did little to lift profits given trouble elsewhere in the energy industry.
Natural gas prices have plummeted 37% this year due to a supply glut. Retail and distribution margins for gasoline, or the difference between the retail and refining prices, were also lower in February and March compared with the same period last year, according to the Energy Information Administration.
Chevron’s refining business in the U.S. saw earnings plummet by more than half to $453 million. Profits in international refining took an even bigger hit, falling nearly 60% to $330 million.
The U.S. oil and gas business booked earnings of about $2 billion, a 16% increase over the prior-year period due to higher sales volume. Chevron produced 1.57 million barrels of oil and gas daily in the U.S. for the quarter, an increase of 35%, or 406,000 bpd, from a year ago.
The oil major attributed the production gains to strong output in the Permian and the Denver-Julesburg basins.
International oil and gas earnings fell 6% to $3.2 billion as production fell by 39,000 barrels to 1.77 million bpd due to maintenance in Nigeria and field declines. Still, total worldwide production increased 12% to 3.35 million bpd — its highest first-quarter output on record.
Chevron said it expects the shareholder vote and the Federal Trade Commissions request for information on the deal to be wrapped up in the second quarter.
Capital expenditures rose to $4.1 billion, a 37% increase over the $3 billion spent in the year-ago period. The higher spending was on its oil and gas production and old assets from PDC Energy after completing its acquisition of the company last August.
Chevron still paid out $3 billion in dividends and repurchased nearly $3 billion of its shares in the quarter, though its return on capital of 12.4% was lower than the 14.6% in first quarter last year.
On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.
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The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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