Chevron is capitalizing on the rise in oil prices this year. Chevron stock ( NYSE:CVX ) soared 2.6% this morning, racing to an all-time high price within minutes of the market opening, as investors praised the oil company’s latest quarterly results.
Chevron blew third-quarter results out of the water , easily outperforming Wall Street expectations and building up massive profits and cash flows. In fact, it was Chevron’s second-most lucrative quarter in history.
What Happened to Chevron Stock?
Chevron’s third-quarter net income increased 83.6% year on year to $11.2 billion , attributable mostly to a strong performance from its upstream sector. Chevron invested aggressively and increased Permian Basin output by 12% yearly to capitalize on strong oil prices.
Chevron’s upstream profits skyrocketed due to increased production and significant increases in its average realized prices for crude oil and natural gas liquids. In the United States, for example, Chevron sold crude oil and natural gas for average prices of $76 per barrel and $7.05 per thousand cubic feet in Q3, up from $58 per barrel and $3.25 per thousand cubic feet in the previous quarter.
Meanwhile, strong refining margins bolstered Chevron’s ( NYSE:CVX ) downstream profitability throughout the quarter. However, the firm might have achieved significantly greater results if not for scheduled turnarounds that impacted refinery operations in the United States.
So, What Now?
Chevron is operating at full capacity. Its cash flow from operations set a record ...
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