Chevron – Quality In A Harsh Environment

Seeking Alpha | Mar 25, 2020 at 6:04 PM
  • Announced its updated plans with regard to 2020 capital spending and capital allocation, as it too is adjusting to the new reality in which the oil market has been hit by a near simultaneous demand shock and increase in supply, putting severe pressure on pricing.
  • Adjusting for large impairment charges which depressed these GAAP earnings, Chevron reported an $11.9 billion profit, down from $15.5 billion the year before.
  • With production of around 1.1 billion barrels per year, Chevron reported adjusted earnings of close to $10 per share at a time when oil averaged at $50-60, indicating that at levels in the twenties the company is not making money.