Chevron Q3 Earnings Remain Strong Despite Slipping From Record Levels

More of the same from Chevron as third-quarter earnings easily topped market expectations, demonstrating the company’s leverage to commodity prices and relatively low-cost position that underpins our narrow moat rating. Earnings surged to $11.2 billion, slightly below record levels in the second quarter, from $6.1 billion the year before. Higher commodity prices offset slightly lower production volumes to drive upstream adjusted earnings to $8.9 billion from $4.7 billion the year before. Production fell to 3,027 thousand barrels of oil equivalent per day from 3,034 mboe/d the year before as contract expirations outweighed Permian production growth of 12% from a year ago. Downstream earnings improved to $2.4 billion from $1.2 billion a year ago due to higher margins that offset lower chemical earnings.