U.S. oil major Chevron (NYSE:CVX) has joined the oil and gas industry's robust earnings crowd for the quarter by easily beating analyst profit estimates.
For Q3, Chevron Corp recorded its second-highest quarterly profit ever on the back of increased oil and gas demand and increased U.S. production.
Chevron's net profit for the quarter soared to $11.2 billion, or $5.78 per share, nearly double the net profit recorded in Q3 2021 and easily beating analyst estimates that saw it at $4.86.
Chevron's cash flow from operations increased to $15.3 billion for the quarter, and oil and gas production in the Permian for the quarter hit a quarterly record at 700,000 boepd. This is an increase of 12% from Q3 2021 and an increase of 8,000 boepd from the previous quarter.
Still, Chevron's global production for the first nine months of the year fell to 2.993 million boepd, from 3.093 million boepd in the first nine months of 2021.
Chevron's operating profit for its oil and gas business saw a huge 81% increase, reaching $9.3 billion for the quarter. Its refining segment saw its operating profits almost double to $2.5 billion, with refined product sales increasing 5% from a year ago, reaching 1.25 million bpd.
Chevron posted its highest-ever quarterly profits in the second quarter, thanks to high oil and gas prices and tight fuel markets driving multi-year high refining margins.
Chevron's Q3 performance is similar to other oil and gas majors that benefited from the tight markets throughout the quarter, fueled in part by Russia's invasion of Ukraine and plans to ban Russian oil and gas at a time when Europe was already dangerously low on inventories.
Chevron's U.S. peer Exxon also reported its Q3 profits on Friday, boasting its highest-ever profits.
The U.S. oil and gas majors have been under pressure from the Biden Administration to pass on some of their robust profits to end users to alleviate high prices at the pump.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More