Chevron (NYSE: CVX) reported earnings of $11.6 billion in the second quarter -- more than four times what it delivered in the prior-year period. That gusher of profit set a new quarterly record and blew past analysts' estimates as the company cashed in on higher oil and gas prices.
Yet that excellent quarter could have been even better. In one of the best refining markets in years, volumes in Chevron's refining business were down 8%. Should investors be concerned about this weak spot in the oil giant's operations?
As an integrated oil company, Chevron operates upstream oil and gas production assets and downstream refining and chemicals operations. Its businesses in both segments capitalized on the strong market conditions in the second quarter. Upstream earnings soared nearly 170% to around $8.6 billion, while downstream profits rocketed by more than 300% to $3.5 billion.
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Chevron's Profits Quadrupled Despite 1 Surprising Issue. Is the Oil Stock Still a Buy?