Chevron surpasses earnings predictions and distributes over $7 billion to shareholders.

• Chevron beat third-quarter earnings and revenue expectations.
• Despite a decline in the oil major's quarterly profit compared to the previous year, it remained substantial.
• The company returned a record $7.7 billion to shareholders in the quarter.

Shareholders received a record amount of cash after the company beat third-quarter earnings and revenue expectations.

Following the release of the report, the company's shares increased by 2.6% in the premarket.

Despite higher revenue, the oil major's quarterly profit decreased significantly due to lower profit margins on refined product sales, lower prices, and unfavorable tax times.

Chevron plans to simplify its holdings by selling assets in Canada, Congo, and Alaska in the fourth quarter of 2024. Additionally, the company aims to achieve cost savings of $2 billion to $3 billion from 2024 to 2026.

Based on a survey of analysts by LSEG, what was reported for the third quarter differed from what Wall Street had anticipated.

• Earnings per share: $2.51 adjusted, vs. $2.43 expected
• Revenue: $50.67 billion, vs. $48.99 billion expected

In the third quarter of 2023, Chevron's net income was $6.53 billion, or $3.48 per share, but in the same quarter of 2023, it was $4.49 billion, or $2.48 per share, down 31%. However, when adjusted for foreign currency impacts, the company reported earnings of $2.51 per share, which exceeded Wall Street's expectations for the quarter.

In the fourth quarter of 2020, Chevron recorded revenue of $50.67 billion, which exceeded analyst predictions but was 6% lower than the $54.1 billion reported in the third quarter of the same year.

In the quarter, the oil major distributed a record $7.7 billion to its shareholders through share buybacks and dividends, totaling $4.7 billion and $2.9 billion respectively.

In the quarter, Chevron's oil-equivalent barrels per day production increased by 7% compared to the third quarter of 2023, reaching a record level in the Permian Basin.

Despite outperforming the broader S&P 500 energy sector, which has gained more than 6%, Chevron's stock has remained largely flat for the year. The uncertainty surrounding the company's pending $53 billion acquisition of has hindered the shares' ability to gain ground.

Despite the Federal Trade Commission's prohibition of John Hess joining Chevron's board, the deal has been cleared.

Chevron is facing a challenge from Exxon in a dispute over Hess Corp.'s oil assets in Guyana. If an arbitration court rules in Exxon's favor, Chevron's acquisition of Hess will not proceed.