Chevron Corporation posted earnings of $6 billion for second-quarter (Q2) 2023, compared with $11.6 billion in Q2 2022.
Included in the current quarter was a one-time tax benefit of $225 million related to impairments that were recognized in prior periods. Foreign currency effects increased earnings by $10 million, adjusted earnings of $5.8 billion in second-quarter 2023 compared with adjusted earnings of $11.4 billion in second-quarter 2022.
The decline in second-quarter 2023 earnings is attributed primarily to lower upstream realizations and reduced margins on refined product sales. Sales and other operating revenues during second-quarter 2023 amounted to $47.2 billion, a decrease from $65.4 billion in the same period last year, primarily due to lower commodity prices.
Chevron has upstream earnings in second-quarter 2023 of $4.94 billion, down from $8.5 billion in second-quarter 2022 and $5.16 billion in first-quarter 2023. Downstream earnings in second-quarter 2023 was $1.5 billion, down from $3.5 billion in second-quarter 2022 and $1.8 billion in first-quarter 2023.
The company’s worldwide net oil-equivalent production was up 2% from the year-ago quarter, mainly driven by record Permian basin production of 772,000 boe/d.
Capital expenditures in second-quarter 2023 rose by 18% from a year ago, primarily because of increased investments in the US.
During the quarter, Chevron distributed a record $7.2 billion to shareholders, which included $2.8 billion in dividends and $4.4 billion in repurchasing over 27 million shares. Year-to-date, the company has repurchased nearly 50 million shares.
The company’s board of directors declared a quarterly dividend of $1.51 per share, payable on Sept. 11, 2023, to all holders of common stock.
In May 2023, Chevron agreed to acquire PDC Energy Inc. in an all-stock transaction, with closing anticipated in August 2023. This acquisition is expected to add $1 billion to annual free cash flow.