RNFTF - Chevron: Solid Q1 2024 Earnings And A Good Long-Term Holding

2024-05-02 17:19:13 ET

Summary

• Chevron Corporation's first-quarter earnings results were mixed, with a decline in revenue and operating income, but strong production growth.
• The company's performance was impacted by lower natural gas prices, but it experienced smaller revenue declines than many peers.
• Chevron's completion of the Tengiz oilfield expansion project and its strong balance sheet make it an attractive long-term investment.
• The company's valuation is very appealing relative to its peers and the market as a whole.
• There is a near-term risk that consumers are going to cut back on travel this summer, but the long-term trajectory for energy prices is positive.

On Friday, April 26, 2024, oil and gas supermajor Chevron Corporation ( CVX ) announced its first-quarter 2024 earnings results. At first glance, these results were mixed as the company failed to meet analysts’ earnings expectations but still posted an earnings beat. However, a closer look at these results reveals that there were quite a few things that investors should be able to appreciate.

In particular, Chevron managed to achieve pretty strong performance from its enormous project in Kazakhstan, as well as from various projects in the Permian Basin in North America. As has been the case with most oil and gas companies that have reported so far, though, the company was adversely impacted by lower natural gas prices. However, Chevron is not as impacted by natural gas prices as some of its peers, such as Exxon Mobil ( XOM )....

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