Chevron Shares Tumbled Following Mixed Fourth-Quarter Earnings

Jan 28, 2022 By MarketDepth

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Chevron (NYSE: CVX) shares tumbled Friday following the company’s mixed fourth-quarter earnings and the rise of oil and gas prices. The stock fell more than 4% at the opening bell on Friday, after having hit an all-time high on Thursday.

Lower than Expectations

The multinational energy corporation reported earnings of USD2.56 per share, compared to the expected USD3.12 a share. Revenue amounted to USD48.13 Billion, higher than analysts anticipated USD45.30 Billion. Moreover, the company’s cash flow operations totalled USD29.2 Billion in 2021, more than double 2020’s USD10.6 Billion.

“In 2021, we delivered record-free cash flow and accelerated our progress towards a lower carbon future. We’re an even better company than we were just a few years ago. We’re more capital and cost-efficient, enabling us to return more cash to shareholders.”

Mike Wirth, Chevron’s chairman and chief executive officer

Chevron managed to increase its quarterly dividend per share by 4% during 2021, while also boosting return on capital employed to 9.4% and cutting debt by USD12.9 Billion. Furthermore, it increased its dividend per share by another 6% to USD1.42 this week.

Production Dropped

According to the company, worldwide net oil-equivalent production dropped by approximately 5% year over year throughout the fourth quarter to 3.12 Million barrels per day. Chevron’s results come as oil continues to recover from its pandemic-era lows.