Chevron Reports Fourth Quarter 2023 Results

Chevron Corporation (NYSE: CVX) reported earnings of $2.3 billion ($1.22 per share – diluted) for the fourth quarter of 2023, compared with $6.4 billion ($3.33 per share – diluted) in the fourth quarter of 2022. Included in the current quarter were $1.8 billion of U.S. upstream impairment charges and $1.9 billion of decommissioning obligations from previously sold assets in the U.S. Gulf of Mexico. Foreign currency effects decreased earnings by $479 million.

Adjusted earnings of $6.5 billion ($3.45 per share – diluted) in the fourth quarter of 2023 compared to adjusted earnings of $7.9 billion ($4.09 per share – diluted) in the fourth quarter of 2022. See Attachment 4 for a reconciliation of adjusted earnings.

Earnings & Cash Flow Summary

 Unit 4Q 20233Q 2023 4Q 2022 20232022
Total Earnings / (Loss)$ MM$2,259 $6,526 $6,353 $21,369 $35,465 
Upstream$ MM$1,586 $5,755 $5,485 $17,438 $30,284 
Downstream$ MM$1,147 $1,683 $1,771 $6,137 $8,155 
All Other$ MM$(474)$(912)$(903)$(2,206)$(2,974)
Earnings Per Share – Diluted$/Share$1.22 $3.48 $3.33 $11.36 $18.28 
Adjusted Earnings (1)$ MM$6,453 $5,721 $7,850 $24,693 $36,542 
Adjusted Earnings Per Share – Diluted (1)$/Share$3.45 $3.05 $4.09 $13.13 $18.83 
Cash Flow From Operations (CFFO)$ B$12.4 $9.7 $12.5 $35.6 $49.6 
CFFO Excluding Working Capital (1)$ B$11.4 $8.9 $11.5 $38.8 $47.5 
(1) See non-GAAP reconciliation in attachments

In 2023, we returned more cash to shareholders and produced more oil and natural gas than any year in the company’s history,” said Mike Wirth, Chevron’s chairman and chief executive officer. Cash returned to shareholders totaled over $26 billion for the year, 18 percent higher than last year’s record total, and annual worldwide net oil-equivalent production increased to over 3.1 million barrels of oil-equivalent per day, led by 14 percent growth in the United States.

“We also strengthened our portfolio with traditional and new energy acquisitions to help meet the growing demand for affordable, reliable, and ever-cleaner energy,” Wirth concluded. In 2023, the company completed several acquisitions, including PDC Energy, Inc. and a majority stake in ACES Delta, LLC, and signed an agreement to acquire Hess Corporation.

Financial and Business Highlights

 Unit 4Q 2023 3Q 2023   4Q 2022  2023 2022 
Return on Capital Employed (ROCE)% 5.1% 14.5% 14.2% 11.9% 20.3%
Capital Expenditures (Capex)$ B$4.4 $4.7 $3.8 $15.8 $12.0 
Affiliate Capex$ B$0.9 $0.8 $1.0 $3.5 $3.4 
Free Cash Flow (1)$ B$8.1 $5.0 $8.7 $19.8 $37.6 
Free Cash Flow ex. working capital (1)$ B$7.1 $4.2 $7.7 $23.0 $35.5 
Debt Ratio (end of period)% 11.5% 11.1% 12.8% 11.5% 12.8%
Net Debt Ratio (1) (end of period)% 7.3% 8.1% 3.3% 7.3% 3.3%
Net Oil-Equivalent ProductionMBOED 3,392  3,146  3,011  3,120  2,999 
(1) See non-GAAP reconciliation in attachments

2023 Financial Highlights

  • Reported earnings declined compared to last year primarily due to lower upstream realizations, losses from decommissioning obligations for previously sold assets in the U.S. Gulf of Mexico, higher U.S. upstream impairment charges mainly in California, and lower margins on refined product sales.
  • Worldwide and U.S. net oil-equivalent production set annual records. Worldwide production was up 4 percent from a year ago primarily due to the acquisition of PDC Energy, Inc. (PDC) and growth in the Permian Basin, which was up 10 percent over 2022.
  • Added approximately 980 million barrels of net oil-equivalent proved reserves in 2023, which are subject to final reviews, equating to 86 percent of net oil-equivalent production for the year. The largest net additions were from acquisitions in the United States, and extensions and discoveries in the Permian Basin. The largest net reductions were from revisions in the Permian Basin, east Texas, and California.
  • Capex in 2023 was up 32 percent from last year primarily due to higher investments in the United States, including about $450 million invested in PDC assets post-acquisition and approximately $650 million of inorganic spending, mainly due to the acquisition of a majority stake in ACES Delta, LLC. Capex excludes the acquisition cost of PDC.
  • Cash flow from operations was lower than a year ago mainly due to lower commodity prices and lower margins on refined product sales. Over the past three years, the company has generated over $110 billion in cash flow from operations and nearly $80 billion of free cash flow.
  • Eliminated over $4 billion of debt, including all debt assumed in the PDC acquisition, resulting in a net debt ratio of 7.3 percent.
  • The company returned a record $26.3 billion of cash to shareholders during 2023, including dividends of $11.3 billion (3 percent higher than in 2022) and share repurchases of $14.9 billion (32 percent higher than last year).
  • The company’s Board of Directors declared an 8 percent increase in the quarterly dividend to one dollar and sixty-three cents ($1.63) per share, payable March 11, 2024, to all holders of common stock as shown on the transfer records of the corporation at the close of business on February 16, 2024.

2023 Business Highlights

  • Completed the acquisition of PDC, enhancing the company’s strong presence in the DJ and Permian Basins in the United States.
  • Completed the acquisition of a majority stake in ACES Delta, LLC, which is developing a green hydrogen production and storage hub in Utah.
  • Achieved first oil at the Mad Dog 2 project in the Gulf of Mexico.
  • Achieved first natural gas production from the Gorgon Stage 2 development in Australia.
  • Achieved mechanical completion on the Future Growth Project at the company’s 50 percent-owned affiliate, Tengizchevroil.
  • Converted the diesel hydrotreater at the El Segundo, California refinery to process either 100 percent renewable or traditional feedstocks.
  • Reached final investment decision to construct a third gathering pipeline that is expected to increase natural gas production capacity at the Leviathan reservoir, offshore Israel.
  • Expanded the Bayou Bend carbon capture and sequestration hub on the U.S. Gulf Coast through an acquisition of nearly 100,000 acres.
  • Received approvals to extend Block 0 concession in Angola through 2050.
  • Received approval to extend licenses with PetroBoscan, S.A. and Petro Independiente, S.A. in Venezuela through 2041.
  • Acquired 73 exploration blocks in the Gulf of Mexico (GOM) lease sale 259 and submitted winning bids on 28 blocks in GOM lease sale 261, subject to final government approval.
  • Announced a definitive agreement to acquire Hess Corporation, which is expected to strengthen Chevron’s long-term performance by adding world-class assets and people. 

Segment Highlights

U.S. UpstreamUnit  4Q 2023   3Q 2023  4Q 2022  2023  2022
Earnings / (Loss)$ MM$(1,347)$2,074$2,618$4,148$12,621
Net Oil-Equivalent ProductionMBOED 1,598  1,407 1,192 1,349 1,181
Liquids ProductionMBD 1,164  1,028 895 997 888
Natural Gas ProductionMMCFD 2,604  2,275 1,789 2,112 1,758
Liquids Realization$/BBL$58.69 $62.42$66.00$59.19$76.71
Natural Gas Realization$/MCF$1.62 $1.39$4.94$1.67$5.55
  • U.S. Upstream reported a loss in the fourth quarter of 2023. The results were lower than the year-ago period primarily due to charges associated with decommissioning obligations for previously sold assets in the U.S. Gulf of Mexico, higher impairment charges mainly from assets in California, and lower realizations. These items were partially offset by higher sales volumes, including from production post-closing of the PDC acquisition.
  • U.S. net oil-equivalent production was up 34 percent from the fourth quarter of 2022 and set a new quarterly record, primarily due to the acquisition of PDC, which added 266,000 oil-equivalent barrels per day during the quarter, and higher production in the Permian Basin. 
International UpstreamUnit  4Q 2023   3Q 2023  4Q 2022   2023  2022
Earnings / (Loss) (1)$ MM$2,933 $3,681$2,867 $13,290$17,663
Net Oil-Equivalent ProductionMBOED 1,794  1,739 1,819  1,771 1,818
Liquids ProductionMBD 851  803 852  833 831
Natural Gas ProductionMMCFD 5,661  5,616 5,799  5,632 5,919
Liquids Realization$/BBL$74.54 $75.64$77.67 $71.70$90.71
Natural Gas Realization$/MCF$7.31 $6.96$10.35 $7.69$9.75
(1) Includes foreign currency effects$ MM$(162)$584$(83)$376$816
  • International upstream earnings in the fourth quarter of 2023 were higher than a year ago primarily due to the absence of fourth quarter 2022 write-off and impairment charges, and lower operating expenses, partially offset by lower realizations.
  • Net oil-equivalent production during the quarter was down 25,000 barrels per day from a year earlier primarily due to normal field declines.
U.S. DownstreamUnit  4Q 2023  3Q 2023  4Q 2022  2023  2022
Earnings / (Loss)$ MM$470$1,376$1,180$3,904$5,394
Refinery Crude Oil InputsMBD 923 961 888 934 866
Refined Product SalesMBD 1,298 1,303 1,236 1,287 1,228
  • U.S. downstream earnings in the fourth quarter of 2023 were lower compared to last year primarily due to lower margins on refined product sales.
  • Refinery crude oil inputs during the quarter increased 4 percent from the year-ago period as the company processed more crude oil in place of other feedstocks.
  • Refined product sales in the fourth quarter of 2023 were up 5 percent from the year-ago period, primarily due to higher demand for jet fuel.
International DownstreamUnit  4Q 2023   3Q 2023  4Q 2022   2023   2022
Earnings / (Loss) (1)$ MM$677 $307$591 $2,233 $2,761
Refinery Crude Oil InputsMBD 629  625 653  626  639
Refined Product SalesMBD 1,437  1,431 1,441  1,445  1,386
(1) Includes foreign currency effects$ MM$(58)$24$(112)$(12)$235
  • International downstream earnings during the quarter were higher compared to a year ago primarily due to lower unfavorable foreign currency effects.
  • Refinery crude oil inputs in the fourth quarter of 2023 decreased 4 percent from the year-ago period as refinery runs decreased due to planned shutdowns.
  • Refined product sales during the quarter were flat compared to the fourth quarter last year.

All Other

All OtherUnit  4Q 2023   3Q 2023   4Q 2022   2023   2022 
Net charges (1)$ MM$(474)$(912)$(903)$(2,206)$(2,974)
(1) Includes foreign currency effects$ MM$(259)$(323)$(210)$(588)$(382)
  • All Other consists of worldwide cash management and debt financing activities, corporate administrative functions, insurance operations, real estate activities, and technology companies.
  • Net charges in the fourth quarter of 2023 decreased compared to a year ago primarily due to lower employee benefit costs and favorable tax items. 

Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals, and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations, and grow new lower-carbon businesses in renewable fuels, hydrogen, carbon capture, offsets, and other emerging technologies. More information about Chevron is available at

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