Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. Chevron recently reported quarterly earnings last week, cutting down its 2020 capital spending plan. The U.S oil giant reported earnings per share of $1.93, including $680 million in one-time favorable items, and a revenue of $31.5 billion. Production rose 6% year over year to reach a record high of 3.24 million barrels per day of net oil-equivalent production with production in the Permian increasing by 48% year over year. The sale price for natural gas dropped from $1.64 to 60 cents, as per reports.
The company plans to cut production between 200,000 and 300,000 barrels of oil-equivalent production in May, and between 200,000 and 400,000 barrels of oil-equivalent production in June.
“Financial results in future periods are expected to be depressed as long as current market conditions persist,” the company said.
“We really have seen demand in places we’ve never seen before, and the market reflects that, and supply has been slower to respond to that, so prices reflect the real dramatic impact of the slowdown and in fact shutdown in economies around the world as we fight the virus,” stated CEO Michael Wirth on CNBC.
In March, the company had announced a 20% cut to its capital spending plan, from $20 billion to $16 billion but the company now plans to reduce its 2020 capital spending plans by an additional $2 billion, to $14 billion and expects its operating expenses to fall by $1 billion. The company assured that its dividend is a priority and that it’s taking action to sustain it over the long term.
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